Dropbox, the startup that makes cloud backup and syncing incredibly easy, is cash-flow positive, on track to generate $100 million in revenue this year and could be worth $1-2 billion, Fortune reports.
Dropbox has a good freemium business model. The first 2 gigabytes of data are free, and after that you pay a monthly fee.
If you've used Dropbox and gotten the benefits for months and have hit your 2 gig limit, are you going to take all your files off Dropbox? More likely you'll pay up.
Importantly, Dropbox's margins should improve over time since it is based in the cloud, where costs are going down all the time.
Add in its smart marketing (if you refer someone, both you and your friend get free space) and Dropbox has all the ingredients of a rocketship company. According to Fortune, Dropbox, founded in 2007, has had 10x year-over-year growth.
Naturally, since Dropbox is doing very well and is in a hot sector--cloud computing--there are speculations that someone like Google or Amazon could snap it up.
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