SpiderOak Closes Series A Round of $3.5 Million

Privacy solutions company SpiderOak, Inc. launched SpiderOakONE, the latest release of its Zero Knowledge backup solution.

During the past several months, SpiderOak has improved performance, increased storage for its most affordable plans, and launched a small business version of the core private backup product.

And, the company closes a venture funding round.

OCA Ventures of Chicago, IL led the $3.5 million Series A round including BW Capital Partners, DRW Venture Capital and KGC Capital.

SpiderOak earns consistent user and revenue growth, has high retention of paid users, and is experimenting with new product concepts in the privacy marketplace.

This round of funding allows SpiderOak to increase its development staff and accelerate growth.

SpiderOak president Mike McCamon added: “For too long users have had to make compromises between usability and privacy. SpiderOakONE is a big step towards providing the most affordable, secure and private cloud backup solution, without making that compromise. While there’s still work to be done, we want to fully enable solutions that offer true privacy in the cloud.”

“We are very excited about the prospects for SpiderOak as consumers and companies continue their move to the cloud and realize the importance of true privacy, which SpiderOak is uniquely positioned to deliver via their Zero Knowledge architecture,” said Ian Drury, general partner, OCA Ventures.

Pricing for SpiderOakONE is $12 a month for 1TB of storage. Smaller storage plans start at $7 a month for 30GB with small business and enterprise implementations for groups of users at $5 per user per month for unlimited space. New users can download the product and sign-up for a free 60-day trial.

SpiderOakONE is built using a Zero Knowledge architecture which encrypts data prior to transfer from the user’s computer to a secure server. Users are the sole maintainer of the keys required to decrypt and read the data. By using this design, SpiderOak can never know more than the client’s username, billing information, email address, and the amount of data stored in the users’ account. This means that SpiderOak does not know, trade or otherwise mine the data entrusted to it by customers.