Nebulous’ Sia Network Gets $3.5 Million In Funding Led By Bain Capital to Rival Hulu Experience
2019 is the year of crypto. Not only Bitcoin has recovered some of its prices and the bear market has ended, but blockchain startups are finally starting to recover from their fall, too. After so many Initial Coin Offerings (ICOs) failed, several startups are being able to gather funds using other means.
Now, Nebulous, a crypto startup based in Boston, has been able to gather $3.5 million USD for its Sia Network project during its pre-Series A round, which was led by Bain Capital Ventures. Other important investors of the round were Dragonfly Capital Partners and Bessemer Venture Partners.
If the company had this level of success in its pre-Series A round, we can only expect the real round to be even better.
Salil Deshpande, an executive at Bain Capital, told the crypto media outlet Coindesk that Nebulous is currently the only startup in the market that has a live solution for the permissionless storage of decentralized apps.
All the other options, according to him, are either not investable or have “glaring technical issues”. The main issue, according to him, is that centralized storage simply does not work very well for decentralized apps. If your dapp is stored in a centralized way, then it is not really decentralized at all.
The CEO of Nebulous, David Vorick, was also interviewed by the crypto media outlet. He affirmed that the company was able to raise $6.3 million USD since its launch back in 2014. At the moment, the network has at least 332 node operators and it has 450 terabytes of data.
Ever since its launch, Sia had followed a very different route when compared to other startups. For instance, its Siacoin tokens were not a part of an ICO but were all mined. The company profited selling Siacoin mining machines, though. 6,000 machines, worth around $15 million USD, were sold so far.
Basically, the network lives off the Siafunds, which are 10,000 wallets that receive a small fraction of transaction fees. These fees are used in order to keep the decentralized network afloat. The miners receive their part and the company does it as well. What the clients get in exchange is a proper decentralized storage solution.
As an additional source of income, the company sells some of its Siafund tokens to investors who also want to profit from this system.
With all the money that was gathered so far, the company is ready to double the size of its team. At the moment, only 12 people work in the company but they are bound to be 24 soon.
The Next Goal: Become The Crypto Version of Hulu
Another very interesting idea for the project is basically to become the decentralized crypto version of Hulu. There are several types of materials which are simply too niche for a platform such as Netflix or Hulu. This is when the Sia Network would come in.
According to Vorick, people would be able to put several niche materials such as indie films on the blockchain without even having to host a node in order to do it. This way, they could even use third-party dapps in order to show these movies such as Filebase, which is used for people who want to download software that is stored on the network.
People would even be able to generate a public URL in order to share the files and allow its streaming. If the project was successful, it could lead to a revolution in distribution.
Even Deshpande talked about this idea. According to him, this would be a very interesting use case. People could use it for the same purposes that they use Netflix, only it will be decentralized, so you will not have a single company controlling all the content.
There are some companies which are following this one’s footsteps, however. Filecoin and Fluree, for instance, have similar projects. However, Vorick does not believe that they will have a chance and bets on the advantages of starting before and creating a powerful userbase.