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Dropboxis a file hosting service operated by the American company Dropbox, Inc., headquartered in San Francisco, California, U.S. that offers cloud storage, file synchronization, personal cloud, and client software. Dropbox was founded in 2007 by MIT students Drew Houston and Arash Ferdowsi as a startup company, with initial funding from seed accelerator Y Combinator.[13]

Dropbox brings files together in one central place by creating a special folder on the user's computer.[15] The contents of these folders are synchronized to Dropbox's servers and to other computers and devices where the user has installed Dropbox, keeping the same files up-to-date on all devices. Dropbox uses a freemium business model, where users are offered a free account with set storage size, with paid subscriptions available that offer more capacity and additional features. Dropbox Basic users are given two gigabytes of free storage space.[16] Dropbox offers computer apps for Microsoft Windows, Apple macOS, and Linux computers, and mobile apps for iOS, Android, and Windows Phone smartphones and tablets.[17] In March 2013, the company acquired Mailbox, a popular email app, and in April 2014, the company introduced Dropbox Carousel, a photo and video gallery app. Both Mailbox and Carousel were shut down in December 2015, with key features from both apps implemented into the regular Dropbox service.[18] In October 2015, it officially announced Dropbox Paper, its collaborative document editor.[19]


Houston founded Evenflow, Inc. in May 2007[21] as the company behind Dropbox, and shortly thereafter secured seed funding from Y Combinator.[22] Dropbox was officially launched at 2008's TechCrunch Disrupt, an annual technology conference.[23] Owing to trademark disputes between Proxy, Inc. and Evenflow, Dropbox's official domain name was "getdropbox.com" until October 2009, when it acquired its current domain, "dropbox.com".[23] In October 2009, Evenflow, Inc. was renamed Dropbox, Inc.[24]


In an interview with TechCrunch's "Founder Stories" in October 2011, Houston explained that a demo video was released during Dropbox's early days, with one viewer being Arash Ferdowsi. Ferdowsi was "so impressed" that they formed a partnership. In regards to competition, Houston stated that "It is easy for me to explain the idea, it is actually really hard to do it."[25]


Dropbox saw steady user growth after its inception. It surpassed the 1 million registered users milestone in April 2009, followed by 2 million in September, and 3 million in November.[26] It passed 50 million users in October 2011,[27] 100 million in November 2012,[28][29] 500 million in 2016,[30][31] and 700 million in 2021.[32]


In July 2012, Dropbox acquired TapEngage, a startup that "enables advertisers and publishers to collaborate on tablet-optimized advertising".[33] The following December, Dropbox acquired two companies; Audiogalaxy, a startup "allowing users to store their music files and playlists in the cloud then stream them to any device",[34] and Snapjoy, a company that allowed users to "aggregate, archive and view all of their digital photos from their cameras, phones and popular apps like Flickr, Instagram and Picasa, and then view them online or via an iOS app".[35] In July 2013, Dropbox acquired Endorse, a "mobile coupon startup".[36]


In January 2015, Dropbox acquired CloudOn, a company that provided mobile applications for document editing and creation. At the same time, Dropbox told TechCrunch that CloudOn's base in Herzliya would become the first Dropbox office in Israel.[39] In July, Dropbox acquired Clementine, an enterprise communication service.[40]


In April 2014, Dropbox acquired photo-sharing company Loom (which would be shut down and integrated with the then-recently announced Carousel),[41] and document-sharing startup Hackpad.[42][43] Dropbox later announced in April 2017 that Hackpad would be shut down on July 19, with all notes being migrated to Dropbox Paper.[44][45]


In November 2022, Dropbox announced that an agreement to acquire several key assets from Boxcryptor has been signed. Boxcryptor is a provider of end-to-end zero-knowledge encryption for cloud storage services.[50]


At the start of the Covid-19 pandemic in 2020, Dropbox was one of the first companies to shift to a remote workforce. In October 2020, the company announced its "virtual first" initiative which would shift the company to a long-term remote working plan, which launched officially April 2021.[52][53]


In January 2021, Dropbox CEO Houston announced the layoff of 315 employees, which is approximately 11 percent of the current workforce. The company said the reductions were necessary in order to focus the company team structure and focus on top level priorities. The software firm also announced that COO Olivia Nottebohm would be leaving the company on February 5, 2021.[54] In the same month, Dropbox announced it would sublease much of its office space in a transition to remote work.[55]


In April 2023, Dropbox CEO Houston announced the layoff of roughly 500 employees, or 16 percent of the current workforce. The company cited a slowdown in growth and a need for different, AI-focused skill-sets.[56]


Dropbox has computer apps for Microsoft Windows, Apple macOS, and Linux computers,[57] and mobile apps for iOS, Android, and Windows Phone smartphones and tablets.[58] It also offers a website interface.[59] As part of its partnership with Microsoft, Dropbox announced a universal Windows 10 app in January 2016.[60][61]


Dropbox's apps offer an automatic photo uploading feature, allowing users to automatically upload photos or videos from cameras, tablets, SD cards, or smartphones to a dedicated "Camera Uploads" folder in their Dropbox. Users are given 500 megabytes of extra space for uploading their first photo, and are given up to 3 gigabytes of extra space if users continue using the method for more photos.[62]


In July 2014, Dropbox introduced "streaming sync" for its computer apps. Streaming sync was described as a new "supercharged"[63] synchronization speed for large files that improves the upload or download time by up to 2 times.[64]


Dropbox received initial funding from seed accelerator Y Combinator.[13] Dropbox also raised US$1.2 million in Series A funding from Sequoia Capital in 2007, that "along with interest (on that amount) converted to equity as part of the Series A investment, which included a fresh slug of US$6 million", bringing the total amount to US$7.25 million, with the round closed in 2008 and documents filed in 2009.[26]


A May 2010 report in The Wall Street Journal said that "since [founder Drew Houston] started reading Eric Ries' Lean startup blog about a year ago, the company has started trickling out new features when they are ready instead of waiting to launch a fully featured product. That helps test customer appetite, he says, dubbing the practice "minimum viable product".[67]


In March 2017, Bloomberg reported that Dropbox had secured a US$600 million credit line, with the company expected to file for its initial public offering (IPO) "as soon as this year".[71][72][73]


In February 2018, Dropbox filed an IPO to be listed on the Nasdaq. The company's initial intent was to raise $500 million.[74] Dropbox's stock rose 42 percent to $29.89 in its first day of trading on March 23, 2018.[75]


Dropbox uses a freemium business model, where users are offered a free account with a set storage size, with paid subscriptions available that offer more capacity and additional features.[77] Accordingly, Dropbox's revenue is a product of how many users they can convert to their paid services.[78]


Dropbox Basic users are given two gigabytes of free storage space.[79] This can be expanded through referrals; users recommend the service to other people, and if those people start using the service, the user is awarded additional 500 megabytes of storage space. Dropbox Basic users can earn up to 16 gigabytes through the referral program.[80]


In November 2013, Dropbox announced changes to "Dropbox for Business" that would enable users to connect both their personal Dropbox and their business Dropbox to the same device, with each of the folders being "properly labeled for personal or work, and come with its own password, contacts, settings, and files". Furthermore, Dropbox announced shared audit logs, remote wipe for business administrators, and account transfers, as new features of its Business offering.[85][86] In January 2017, Dropbox introduced "Smart Sync" for Business and Enterprise customers, a feature that lets Windows and macOS users see all files in the Dropbox folder, but only download specific files on-demand.[87][88]


Dropbox Business is Dropbox's application for corporations, adding more business-centered functionality for teams, including collaboration tools, advanced security and control, unlimited file recovery, user management and granular permissions, and options for unlimited storage.[89] For large organizations, Dropbox offers Dropbox Enterprise, the "highest tier" of its product offerings, adding domain management tools, an assigned Dropbox customer support member, and help from "expert advisors" on deployment and user training.[90]


In July 2016, Dropbox announced a new "AdminX" administrator dashboard for Business customers, offering improved control of company files and users.[91][92] In June 2017, the AdminX dashboard was given a redesign and additional administrator functions, such as log-in durations, custom password strength parameters, and setting specific subdomain verifications for individual teams.[93][94]


In September 2012, Facebook and Dropbox integrated to allow users in Facebook Groups to share files using Dropbox.[95][96] In 2013, Samsung pre-loaded the Dropbox mobile application on its Android devices and Dropbox provided extra space for users owning Samsung's devices.[97] In November 2014, Dropbox announced a partnership with Microsoft to integrate Dropbox and Microsoft Office applications on iOS, Android and the applications on the web.[98][99]On July 10, 2018, Dropbox announced its partnership with Salesforce aiming to improve brand engagement and team productivity.[100]

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