Get All Access for $5/mo

Billionaire Investor Draper Leads $4.2 Million Funding in Blockchain Startup The blockchain technology startup powers the digital currency bitcoin and enables data-sharing across a network of individual computers.

By Reuters

This story originally appeared on Reuters

Reuters | Danny Moloshok
Venture capital investor Tim Draper.

Texas-based Factom Inc., a blockchain technology company that secures data, said on Wednesday it has raised $4.2 million in financing from a slew of global investors led by billionaire investor Tim Draper.

Blockchain technology powers the digital currency bitcoin and enables data-sharing across a network of individual computers. It has gained worldwide popularity due to its perceived usefulness in recording and keeping track of assets across practically all industries.

Factom Apollo and Factom Iris are products built on the company's open source. They have developed ways to use the blockchain to keep records and identities more secure.

"Blockchains first pushed the boundaries of computer science with the simple yet revolutionary ability to trade digital value openly," said Paul Snow, chief architect and co-founder of Factom in a statement.

"Now we are pushing the limits of computer science in a second revolution. The Factom protocol allows for the open coordination of processes against immutable ledgers of data. It will have the same kind of impact on data and systems as the first revolution had on value."

Draper said data security is a key issue among governments, banks, car companies, credit card companies, retailers and any organization concerned about hacking.

"By decentralizing data through the blockchain, Factom avoids critical failures due to user error or hacker," he added.

Draper has been one of the earliest backers of bitcoin companies.

Other investors in the funding round included BnkToTheFuture, a global online investment platform focused on financial innovation and technology.

China-based Fenbushi Corporation and Fenbushi Investment Fund also invested in Factom. The group runs a venture capital firm that exclusively invests in blockchain-enabled companies.

(Reporting by Gertrude Chavez-Dreyfuss; Editing by David Gregorio)

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Data & Recovery

Use This Code to Get 1TB of Cloud Storage for $120

Koofr Cloud Storage makes backing up and sharing work files a safer and easier process.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Wells Fargo Reportedly Fired More Than a Dozen Employees for Faking Keyboard Activity

The bank told Bloomberg that it "does not tolerate unethical behavior."

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Living

Get Easy Access to Fun Summaries of Non-fiction Bestsellers with This $60 Subscription

Headway lets users gain key ideas and insights from best-selling works of non-fiction.