YouSendIt Raises $10 Million in Series B Round

startupmeme.com

6 points·usablecontent··10 comments

What's the barrier to entry here? It looks easy to implement.

It is, apparently. I've switched to SendSpace ( http://www.sendspace.com/ ), and there's also MegaUpload ( http://megaupload.com/ )

Don't forget about rapidshare... the 900lb gorilla.

And dropsend. Theres no shortage of apps in this space

Yes, it's called FTP.

Remember that article about webifying unix commands? This is yet another example.

And they got $10m! The bubble is back!

YSI really is a good service - I use it all the time to send stuff to friends, or did before I switched to SendSpace. Many of my friends don't understand FTP, don't want to download a client, and just want to click on a link and get the file.

Only problem is they have basically no barriers to entry, so it'll be hard for them to ever become more than a commodity. If they're lucky, they may be able to make a tiny profit by charging or advertising just above their costs, but if they ever get decent margins they'll be swamped by the competition.

What they need all that money for is beyond me. I guess VCs need to prop it up even more before they flip it.

Bandwidth and storage costs could easily get into the millions over a year or two.

Who would pay for file sharing? Who would invest $10 mil in something like this?

I've always wondered... if you raise millions through venture funding etc, are you allowed to just put it in your personal bank account?

I'm sure there are 50 million strings attached to this amount.

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