Evenflow secured seed funding from Y Combinator.

In May 2007, Drew Houston funded Evenflow Inc.

During one demo session, he met Arash Ferdowsi, who showed great interest in the project and became a partner of the company.

in May 2007 and started screening demos, explained how the business model work and its future growth projection, etc. 400 billion pieces of content uploaded to Dropboxīefore Dropbox coming into existence, Drew Houston founded Evenflow, Inc.Dropbox has over 600 million users as of Q3 2019.The company is scheduled to report quarterly results on Thursday afternoon. “This, along with the fact that Dropbox does not have a fully developed enterprise sales organization puts them at a significant disadvantage in a market where network effects give first movers a huge advantage.”

“We believe the natural market structure for collaboration tools is likely to be a monopoly or duopoly, in which MicrosoftĪre the only two viable contenders,” Chrane wrote. He’s also skeptical that the company will be able to make inroads in the office-collaboration space, which is another part of its growth aims. See also: Match Group stock soars after Tinder shows explosive growth once again Which has high switching costs with its design software, may have more leverage to hike prices without incurring meaningful consumer backlash, in his view, but Dropbox doesn’t enjoy those advantages. Which has “a virtual monopoly” with its editing software, or Autodesk Inc. “Raising prices on a relatively commoditized service (when already at a price disadvantage) seems to be a poor long-term growth strategy at a time when the price of cloud-storage is generally falling,” he wrote.Īccording to Chrane, many software companies will add new features for the same price or even lower prices to create more competitive offerings. Read: Disney sets high bar with new $12.99 streaming bundle for Disney+, ESPN+ and HuluĬhrane is concerned about competition in the file-storage space as well as Dropbox’s decision to raise prices on its Plus plan in May. Shares are down 3.2% in premarket trading.

Dropbox stock price graph