Backify.com loses software provider: is my data safe?

Went with this backup provider because of their free/very cheap service. Their service ran using software branded as Livedrive which I thought strange at the time. The wrote to me this morning saying URGENT: All free Backify accounts will be closed on November 22, 2011 So I paid for an upgrade. Then Livedrive wrote to me saying Backify are no longer a reseller and their users should get their payment transaction cancelled. Livedrive said: We would also like to advise you that we have received a number of complaints about BACKIFY.COM from their customers and from industry organizations My question is - should users be more careful about trusting their confidential data to startups - when if fact they have no idea if these startups are legitimate organizations?