Bootstrapped
Privacy‑focused users
2013
Free‑tier virality
Cloud storage
Backed and promoted by Kim Dotcom at its 2013 launch (though not a shareholder), MEGA attracted a surge of users, with premium plans generating early revenue.
Privacy-conscious individuals eager for secure cloud storage signed up in large numbers — MEGA attracted about 20,000 sign-ups per day at launch.
Startup Rollercoaster
The Spark
After the takedown of Megaupload, Kim Dotcom and associates launched MEGA in January 2013 as a privacy-centric file-hosting service. The goal was to provide encrypted cloud storage where users controlled their own keys.
The Peak
At launch, MEGA saw a surge of demand with around 20,000 new sign-ups per day. The publicity surrounding Megaupload’s closure and Dotcom’s high-profile return to the industry drove enormous attention to the new platform.
The Drop
In September 2013 Kim Dotcom stepped down as a Director of MEGA. Around this time, external researchers scrutinised MEGA’s encryption model and pointed out vulnerabilities, putting the company under pressure to prove its security credentials.
The Reset
MEGA responded by introducing a vulnerability reward programme in early 2013, offering financial incentives to identify flaws. The company also began strengthening its encryption practices and bringing in new leadership to professionalise operations and establish credibility.
The Discipline
To maintain trust, MEGA emphasised transparency by publishing its source code and keeping a generous free tier to attract users. Over time, it expanded its offering with mobile apps, browser extensions, and collaboration tools that moved the service beyond simple file storage.
The Climb
With improved security measures and a growing product suite, MEGA retained millions of users worldwide. It established itself as one of the leading providers of encrypted cloud storage, known for both its scale and its focus on user-controlled privacy.
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