Texas-based Factom, Inc., a blockchain technology company that secures data via decentralization, said Wednesday that it has raised $4.2m in a Series A round of funding led by Tim Draper of Draper Associates.
The Series A round of financing enables Factom to further develop its core technology and suite of products, the company said.
“This round of funding allows us to aggressively grow the company and the underlying technology. We started Factom to build a more honest and transparent world using a pretty simple approach: create software that makes it impossible to change the past and point that software at places where it solves valuable business problems. This funding accelerates our progress down that road,” said Peter Kirby, CEO and Co-founder of Factom in a prepared statement.
Factom products are built on Factom’s open source core software and represent an innovative, lightweight, and scalable approach using the blockchain to secure records and identity, the company said.
“Securing data is mission critical for governments, banks, car companies, credit card companies, retailers and any company concerned with hacking,” said billionaire investor Tim Draper.
“Centralized data is prone to critical failure by any individual mistake, whether by user error or malicious hacking. By decentralizing data through the blockchain, Factom avoids critical failures due to user error or hacker. Factom lets people sleep easy knowing that their bank account won’t be broken into, their car won’t errantly go off the road, and their identity won’t be stolen,” he added.