LucidLink gets $75 million for on-demand file streaming technology
Image credits: Moonset/Getty Images
LucidLink, a startup that offers a platform that enables teams to work on files without having to download or sync them, today announced that it has raised $75 million in a Series C round led by Brighton Park Capital with participation from Headline, Adobe Ventures, and Baseline Ventures. This brings the total tranche raised by LucidLink to $90 million, a respectable sum for a company founded about seven years ago.
You’re probably wondering (like this writer) how a storage startup managed to raise nearly $100 million — and why? Well, the 5x growth in annual recurring revenue over the past two years may have something to do with that. As for how it plans to spend the money, LucidLink will “accelerate” its product development and engineering, customer acquisition and vertical expansion efforts, CEO and co-founder Peter Thompson told TechCrunch in an email interview.
“LucidLink did not need to raise capital, but instead, investors sought us out for investment due to our high-quality KPIs and metrics for SaaS businesses,” he said. “In a sea of ups and downs, the significant valuation increase over our Series B in 2022 is a testament to our strong performance, despite market conditions.” (Unfortunately, Thompson declined to reveal the exact rating.)
Thompson co-launched LucidLink in 2016 with George Dotchev, whom he met while working at DataCore Software, a software-defined storage developer based in Florida. While at DataCore, Dochev, a key member of the engineering team, often faced challenges accessing files distributed between different physical locations. He built a solution and, with Thompson, sought to commercialize the technology.
“LucidLink is designed to help remote and hybrid teams of creative professionals address a variety of complex use cases by enabling instant access to massive files and secure real-time collaboration,” Thompson said. “LucidLink has broad applications across creative industries where collaboration on large files is an issue and has seen success in media, entertainment, gaming, architecture, design, advertising and marketing.”
LucidLink lets users stream data directly from the cloud — or, more precisely, stream file clips on demand as needed by an application, like Adobe Premiere or Photoshop — meaning they can use files and folders the moment a team member saves or updates them Shared file space. A single source of truth is maintained in the cloud, while frequently accessed data is stored locally.
Periodically, LucidLink takes “snapshots” of the file space, allowing users to restore previous versions of individual files or revert the entire file space to a previous point. Snapshots do not require a complete copy of all the data, but only what has been changed, resulting in what Thompson described as a “very efficient” use of space.
“The new hybrid workplace requires solutions designed for today’s realities,” Thompson said. “Every other solution on the market focuses on moving data faster or proactively through synchronization, replication, and creating multiple copies… Our customers in the creative industries face particularly challenging issues because their workforces are more likely than others to be remote and hybrid, along with the fact They handle the largest file sizes — making collaboration very unwieldy. The fact that LucidLink solves the problem so elegantly is why we’ve grown so quickly.
LucidLink’s clients include the US Federal Government as well as big-name brands like Adobe (hence the Adobe Ventures investment), A&E Networks, Whirlpool, Shopify, Buzzfeed, and Spotify. Asked if he was concerned about potential macroeconomic headwinds, Thompson said San Francisco-based LucidLink, which has 123 employees, expects to achieve profitability with the latest cash infusion. (I take that as a “no”).