Drop (company)

Drop (formerly Massdrop) is an American e-commerce company based in San Francisco, California.

Drop (formerly Massdrop)
TypePrivate
IndustryProduct
Founded2012 (2012) in
San Francisco, California, United States
FoundersSteve El-Hage (CEO), Nelson Wu
Area served
Worldwide
Number of employees
100+

Drop uses data and insights from community to develop and find products that feed their interests in audio products and mechanical keyboards. The Drop community can also learn, share, shop with others, and participate in product development through polls, discussions, and interest checks.[1]

Drop changed its name from Massdrop in April 2019.

History

Drop founders Steve El-Hage and Nelson Wu met in Toronto, Canada, where El-Hage was studying economics at the University of Toronto.[2] The two had grown up using online forums as a way to explore their hobbies, but believed these forums had many shortcomings, including disorganized meetups and unreliable group buys.[3] They thought that by combining their forum experience with their interest in bulk buying, they could create a site that would better support enthusiast communities.[4] The pair moved to Silicon Valley, where they started Massdrop in 2012.[2]

Business model

Initially, Drop sold products exclusively from existing manufacturers. Intending to provide a collaborative environment, users were able to purchase as a group and influence the types of products sold, through participation in polls, community discussions, and posts.[5][6][7]

The company has since introduced exclusive enthusiast targeted private label products under the Drop name.

Past Drop products

Past products include the Massdrop x Sennheiser HD 6XX headphones,[6] Massdrop x Sennheiser HD 58X headphones,[8] Massdrop CTRL Mechanical Keyboard,[9] and the Massdrop x Sennheiser PC37X gaming headset,[10] and Massdrop x Koss ESP/95X [11]among others.

Funding

In September 2014, Drop raised $6.5 million in a Series A round led by Mayfield Fund with additional investment from previous backers Kleiner Perkins Caufield & Byers, First Round Capital, and Cowboy Ventures.[2][12] In August 2015, the company secured $40 million in Series B funding led by August Capital with additional investment from Mayfield Fund, First Round Capital, and Cowboy Ventures.[13][14]

References
  1. "About | Drop (formerly Massdrop)". Drop. Retrieved 2019-04-30.
  2. Takahashi, Dean (September 24, 2014). "Massdrop raises $6.5M to enable enthusiast communities to use their massive buying power". Venture Beat. Retrieved August 23, 2017.
  3. Green, Dennis (August 17, 2015). "This startup is reinventing the flash sale for discerning men — and it just raised $40 million". Business Insider UK. Retrieved August 23, 2017.
  4. Konrad, Alex (June 11, 2014). "Massdrop's Zany Plan To Rally Internet Mobs For Discounts Is Working--For Now". Forbes. Retrieved December 8, 2014.
  5. "The best Samsung TV is at its lowest price—for now". USA TODAY. Retrieved 2019-04-30.
  6. Kronsberg, Matthew (2018-07-16). "The CEO Turning Passionate Gadget Fans Into Product Designers". www.bloomberg.com. Retrieved 2020-03-01.
  7. "Sennheiser's HD 6XX headphones offer audiophile audio for $200 (updated)". Engadget. Retrieved 2019-04-30.
  8. Picks, Amir Ismael, Insider. "Sennheiser released an affordable version of one of its best headphones — but there are only 5,000 pairs". Business Insider. Retrieved 2019-04-30.
  9. Roach, Jacob. "The best mechanical keyboards you can buy". Business Insider. Retrieved 2019-04-30.
  10. "Massdrop x Sennheiser PC37X Review: An Elusive Gem". Tom's Guide. 2017-01-27. Retrieved 2019-04-30.
  11. Guttenberg, Steve. "Gobsmacked by the sound of the latest Massdrop Koss headphone". CNET. Retrieved 2019-04-30.
  12. Ha, Anthony (September 24, 2014). "Massdrop Raises $6.5M To Turn Group Buying Into A Broader Community Platform". TechCrunch. Retrieved August 23, 2017.
  13. Mac, Ryan (August 13, 2015). "After Nabbing Former Amazon Executive, Massdrop Rakes In $40 Million". Forbes. Retrieved August 23, 2017.
  14. Ha, Anthony (August 13, 2015). "Group Commerce Startup Massdrop Raises $40M". TechCrunch. Retrieved August 23, 2017.
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