Dropbox Valuation at IPO $12.6B

http://www.getdropbox.com

Storage is a mess

It’s 2007, and it’s still a pain to… •Work on multiple computers •Share files across a team •Put photos, video onto the web •Protect files from loss

What are people doing now? •Email attachments •USB drives •Browser uploads •Piecemeal solutions

In a perfect world… •Your files available wherever you are, on any device •Never worry about losing data, can always undo •Sharing, putting media onto the web is drag-and-drop

Dropbox •Keeps files: •In sync across computers •Backed up •Accessible from anywhere •Easy to share •It just works

Demo

Why now? •Lots of devices, bigger files, more content •Increasingly distributed/remote teams •Falling bandwidth, storage prices •Online storage is unclaimed, unmonetized territory, much like search pre-Google

Why better? •Solves the entire genre of storage- related problems with one app •Deep OS integration, visual feedback •Doesn’t make you change the way you work •Open APIs to link desktop & web applications

Competitors Carbonite, Foldershare box.net Mozy Sync Backup Sharing OS integration Webaccess Versioning

What did they screw up? •Only tackle small pieces of the problem •Poor technical execution •Clumsy, verbose & technical UIs; require configuration •Lack of distribution, partners

Technical advantages •Client & server written in Python: 5- 10x faster development time •Leverage Amazon S3, EC2 to achieve scale & reliability •Obsession with performance •Seamless compression, encryption, binary diffing, failure recovery

Team Drew Houston CEO • – S.B. MIT EECS; first line of code at age 6; first startup gig at 14; founded online SAT prep co after multiple perfect scores •Arash Ferdowsi – CTO S.B. MIT EECS (on leave); director of MIT programming competition; Moving into our first office, 5/14/07 prior exp at Google

Business model •Individuals: freemium •SMB: shared folder per-seat license (replaces backup, Windows file share, collaboration tools, reduces IT headcount) •Platform: broker all UGC from the desktop to the web

Platform •Onramp for all UGC from desktopàweb •Convenient for users: drag and drop instead of sign-in and browser upload •Beneficial for web apps: more content uploaded, less friction & fewer failures •Bigger picture: all files in Dropbox, delegate access to web apps

Customer acquisition •Loved by early adopters/beta users (natural influencers) •Free accounts for individuals •Viral elements: file sharing, shared folders, photo/media galleries •Platform, partnerships à free customer acquisition

•Ranked #1 among summer YC startups: “…the simplicity and elegance of its interface, which blends seamlessly into both Windows and OS X, sets it apart.” http://venturebeat.com/2007/08/16/the-y- combinator-list/