Box buys YC-backed cloud storage startup Streem
Jun 18, 2014
Austin Business Journal
Box Inc., which is planning a major expansion in Austin, is acquiring Streem, a private online video storage locker backed by Y Combinator, for an undisclosed amount.
San Francisco-based Streem, co-founded by Twitter Inc. intern and Theil Fellow Ritik Malhotra, will blend its four-person team into the online file-sharing company.
“Streem has developed amazing technology that allows you to mount a cloud drive onto your computer — making documents, presentations, videos and files available to you without the limitations of your local hard-disk, effectively turning the cloud into an ‘unlimited’ drive,” Box CEO Aaron Levie said in a statement.
Box, which provides an online file-sharing service much like competitor Dropbox Inc., will open an Austin office this fall at One American Center and hire 200 workers in several areas such as customer experience, finance and technical operations.
All three categories of Streem’s core technology — its filesystem that enables users to natively access files in the cloud on their desktops, its custom streaming and buffering algorithms and its video transcoder that instantly streams video regardless of the original format — will be incorporated into Box, according to a Streem blog post.
Founded in 2012, Streem nabbed $875,000 in funding in April from Y Combinator, Socialatom Ventures and 500 Startups, among others.
Los Altos-based Box was expected to go public before Memorial Day but delayed the offering when cloud software stocks went into a slide. Levie initially publicly filed at the end of March to raise up to $250 million. The 9-year-old company has raised $431 million in funding with Draper Fisher Jurvetson as its largest shareholder.