To those of you asking what is so special about DO compared to ExyExtraVps.is running stock WHMCS[1] or whatever over at LEB it is that DO are providing the type of features, flexibility and support that Rackspace, AWS and Azure provide but at prices that are close to what the low-end VPS types offer.
If you imagine a Gartner-style quadrant for hosting with price on one axis and then features/support/flexibility on another most providers today sit somewhere along a very straight line - you either have a bunch of features and flexibility and are expensive or you are very rigid and cheap. DO is right up in high features but low price, and it seems so obvious in hindsight (Linode were almost there).
I now have Vagrant setup with Digital Ocean as a provider[2] so setting up a box is as easy as running 'vagrant up --provider=digital_ocean' and then waiting a minute. There are tons of other tools already built up around their API and the ecosystem is thriving. I have another script setup ready to fire up additional instances of web apps.
I'm moving everything I can and that fits from AWS and recommending DO to clients also where it would fit (staging servers, dev servers, backup servers, etc.) There are still some features they need - like load balancing, multiple IP's etc. but this funding means all of that is going to be built sooner.
There is a reason why they are one of the fastest growing hosts ever[3]. These guys are destined to get really really big.
There is also a great effect wherever digital ocean is mentioned online you find a comment thread with dozens of users saying how awesome they are. You can't buy that type of love.
[1] Not to mention that all of that off-the-shelf VPS software running these sites is an absolute security nightmare. The developers rely on hiding their poor code behind ioncube encoding and this has been exposed recently with some big name hacks.
[2] https://github.com/smdahlen/vagrant-digitalocean
[3] Netcraft: The meteoric rise of Digital Ocean: http://news.netcraft.com/archives/2013/06/13/the-meteoric-ri...
edit: forgot to include this earlier, but by way of a disclaimer I introduced Digital Ocean to Crunchfund but don't have a financial stake.