• (Founder Stories) Houston On Pitching Dropbox: “Tom Cruise In Minority Report Is Not Carrying Around A Thumb Drive”

    Saturday, October 29th, 2011

    Josh Zelman is a Video Producer for AOL Tech. Prior to joining AOL he was a producer for CNN/HLN where he produced thousands of live studio technology segments for primetime programming. He was sent on assignment to cover such high profile events as Fortune’s Global Economic Forum, the Consumer Electronics Show and the Electronic Entertainment Expo. Josh graduated from... → Learn More

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    Dropbox co-founder, Drew Houston recently sat down with TechCrunch Editor, Erick Schonfeld to discuss the origins of Dropbox – a service that allows users to upload and access their files from virtually any device, anywhere. With $250-million in funding and 45-million users, Dropbox is shaking up the world of digital storage.

    The roots of Dropbox were planted when Houston was a student at MIT. “You could sit down at any of tens-of-thousands of computers on campus and not only your files but your whole environment was just in front of you and kind of followed you around.” Then graduation hit and Houston says he was thrown “back to the stone age.” He had just launched a company but didn’t feel secure carrying it around in his jeans on a thumb drive.

    Solving his own issue, Houston created Dropbox and pitched it to Y Combinator with the premise that “Tom Cruise in Minority Report is not carrying around a thumb drive.”

    He was accepted.

    Below, Houston briefly describes how he tested Dropbox – without actually releasing Dropbox. It’s a strategy Eric Ries recently wrote about on TechCrunch. 

    Aware that releasing a flawed beta would result in customer backlash, Houston made and posted a video describing his software. “It turns out we got the same feedback from all of our prospective users that we would have gotten from putting code in their hands, except it was a ton less effort.”

    Speaking of feedback, when asked about the “file folder structure” of Dropbox, which was created before the iPad, Houston says Dropbox will apply a “post-PC non-file and folder centric approach to everything” it does.

    Make sure to check out the full video for additional insights.

    Past episodes of Founder Stories, featuring conversations with Eric Ries, Scott Heiferman, and Fred Wilson are here.

    Episode II of this interview is coming up.


    Company: Dropbox
    Website: dropbox.com
    Launch Date: June 1, 2007
    Funding: $257M

    Dropbox was founded in 2007 by Drew Houston and Arash Ferdowsi. Frustrated by working from multiple computers, Drew was inspired to create a service that would let people bring all their files anywhere, with no need to email around attachments. Drew created a demo of Dropbox and showed it to fellow MIT student Arash Ferdowsi, who dropped out with only one semester left to help make Dropbox a reality. Guiding their decisions was a relentless focus on crafting a...

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    Company: Y Combinator
    Website: ycombinator.com
    Launch Date: April 1, 2005
    Funding: $10.3M

    Y Combinator is a venture fund which focuses on seed investments to startup companies. It offers financing as well as business consulting along with other opportunities to 2-4 person companies looking to take an idea to a product. Y Combinator looks for companies with “good” ideas over companies with experience and a business model. The company made its first investments in Summer 2005. Y Combinator selects companies to finance and consult with twice a year. They are located in...

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    Person: Drew Houston
    Companies: Dropbox, HubSpot, Accolade, Bit9

    Drew Houston is CEO and Co-Founder of Dropbox, and has led Dropbox’s growth from a simple idea to a service relied upon by millions around the world. Drew leads Dropbox’s activities, and is actively involved in its business and product decisions. Before founding Dropbox, Drew attended MIT where he studied computer science. He took a quick leave from school to form Accolade, an online SAT prep startup, and also worked as a software engineer for Bit9. After graduating from...

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    Person: Erick Schonfeld
    Companies: TechCrunch, Time Warner

    Erick Schonfeld is a technology journalist and the former Editor in Chief of TechCrunch. At TechCrunch, he oversaw the editorial content of the site, helped to program the Disrupt conferences and CrunchUps, produced TCTV shows, and wrote daily for the blog. He joined TechCrunch as Co-Editor in 2007, and helped take it from a popular blog to a thriving media property. After founder Michael Arrington left in 2011, Schonfeld became Editor in Chief. Prior to TechCrunch, he was Editor-at-Large for...

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    Eric Ries is the author of the book, The Lean Startup. Previously, he co-founded and served as Chief Technology Officer of IMVU. He is the co-author of several books including The Black Art of Java Game Programming (Waite Group Press, 1996). While an undergraduate at Yale Unviersity, he co-founded Catalyst Recruiting. Although Catalyst folded with the dot-com crash, Ries continued his entrepreneurial career as a Senior Software Engineer at There.com, leading efforts in agile software development and user-generated content. In...

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