Dropbox Raises $7.25M, Crosses 3M Users

Updated with new information from Dropbox: You don’t go into file backup and syncing for the fame and glory, but that’s what it seems to be yielding for 2-year-old Dropbox. Simply put, people — including my GigaOM coworkers and I — love Dropbox because it works. “We do have a rabid following,” Dropbox CEO Drew Houston admitted in a conversation today.

Over the summer Dropbox raised a $7.25 million Series A round from Sequoia Capital and Accel Partners, adding to $1.5 million in seed money it brought in from Sequoia Capital and Y Combinator in 2007. Accel’s Sameer Gandhi, who had previously led Sequoia’s investment has since become a partner at Accel, led the round. We found out about the Series A via an SEC filing; Houston confirmed the funding had closed but said that the filing was not the final amount. Houston said the company had not yet disclosed its A round because up until last month it was in the process of obtaining the URL dropbox.com from a domain squatter.

He later contacted us (after this article was posted) to share more details. Dropbox had raised $1.2 million in debt in 2007 from Sequoia Capital and that along with interest (on that amount) converted to equity as part of the Series A investment, which included a fresh slug of $6 million. That brings company’s total investment raised to date to $7.25 million. Houston claimed that the round was closed in October 2008, though the documents were filed with the SEC in July 2009. The round was led by Sequoia Capital with participation from Accel Partners.

Dropbox now has 3 million registered users, up from 2 million in September and 1 million in April. Nearly 1.5 million of them were active in the last month, including 300,000 using the company’s new iPhone app, according to Houston. And many of those folks identify themselves as Dropbox lovers, with more than 35,000 signing up to be Twitter followers and 23,000 as Facebook fans. A 2-week-old feature that allows the community to vote on new features has garnered nearly 10,000 votes for the top choice: selectively syncing certain files or folders rather than a whole account.

Alongside other lightweight web apps like Gmail infiltrating the enterprise, Dropbox customers (an undisclosed portion pay $10-$20 per month for additional storage) are now using the simple tool to do their jobs. In some ways, the migration is flowing in the opposite direction — a traditionally enterprise concept is now available to everybody. And Dropbox, as could be expected, says it will offer tools for corporate collaboration in a more formal fashion early next year.

San Francisco-based Dropbox has just 20 employees. The service currently stores nearly 1.3 million gigabytes of data.

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