Scayl is one of 70 companies chosen by VentureBeat to launch at the DEMO Fall 2010 event taking place this week in Silicon Valley. After our selection, the companies pay a fee to present. Our coverage of them remains objective.

Today at the DEMO conference, the team that brought you Morpheus, one of the earliest peer-to-peer file-sharing networks, is revamping the way we email files to each other with HDemail.

Scayl’s HDemail offers users a more secure, end-to-end encryption email service that helps prevent phishing attempts and allows users to transmit large files as attachments.

Scayl removes the size limitations of attachments by allowing multiple sources for an attached file — basically, if three users have the same photo album, the email recipient receives the information from all three users.

Bill Kallman, founder and CEO, said he expects the software to be available on any Internet-equipped device — anything from smart TVs to iPads.

There are already a few file-hosting services, like Rapidshare, Megaupload and, but none of them work the way Scayl does, Kallman said.

Scayl launched in 2007, and now has seven independent contractors and has raised about $500,000 through founders and angel investors. The most recent seed round closed last quarter.

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