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AeroFS

Summer 2010Acquired

Secure Enterprise Collaboration.

Save
AeroFS logo

AeroFS

Summer 2010Acquired

Secure Enterprise Collaboration.

Save
Company details

AeroFS enterprise file sync and share & collaboration solution deploys on your infrastructure. Your files remain secured by your own security protocols, removing the risk associated with relying on your vendors to secure your data.

The service has a Dropbox like user experience. Now, both the end user and the IT team can both get what they are looking for out of a file sharing tool.

We are funded by some of Silicon Valley's best investors and entrepreneurs:

Avalon Ventures A16Z Seed YCombinator SVAngel Chris Sacca (Lowercase Capital) Maynard Webb (COO eBay) Jerry Yang (Founder Yahoo!) Paul Buchheit (Founder FriendFeed)

We're hiring! https://aerofs.com/company/careers You will have the opportunity to work as part of a small team. This means that you will be "CEO" of whatever you create. Our size gives us agility in ways that large companies do not have: We push out code almost daily (on a desktop platform!) to thousands of users.

We're not just building a company; we're building a family. Many of us are new to the area, so company trips, get togethers, and BBQs are par for the course!

Location
San Francisco, CA, USA
Founded
2010
Category
Collaboration
YC profileaerofs.com
Founders
  • YS
    Yuri Sagalov
    Founder/CEO
    X / TwitterLinkedIn
  • WW
    Weihan Wang
    Founder/CTO
    LinkedIn

AeroFS enterprise file sync and share & collaboration solution deploys on your infrastructure. Your files remain secured by your own security protocols, removing the risk associated with relying on your vendors to secure your data.

The service has a Dropbox like user experience. Now, both the end user and the IT team can both get what they are looking for out of a file sharing tool.

We are funded by some of Silicon Valley's best investors and entrepreneurs:

Avalon Ventures A16Z Seed YCombinator SVAngel Chris Sacca (Lowercase Capital) Maynard Webb (COO eBay) Jerry Yang (Founder Yahoo!) Paul Buchheit (Founder FriendFeed)

We're hiring! https://aerofs.com/company/careers You will have the opportunity to work as part of a small team. This means that you will be "CEO" of whatever you create. Our size gives us agility in ways that large companies do not have: We push out code almost daily (on a desktop platform!) to thousands of users.

We're not just building a company; we're building a family. Many of us are new to the area, so company trips, get togethers, and BBQs are par for the course!

Location
San Francisco, CA, USA
Founded
2010
Category
Collaboration
YC profileaerofs.com
Founders
  • YS
    Yuri Sagalov
    Founder/CEO
    X / TwitterLinkedIn
  • WW
    Weihan Wang
    Founder/CTO
    LinkedIn

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On this page
  • Overview
  • Founding Story
  • Timeline
  • What They Built
  • Market Position
  • Target Customers
  • Market Size
  • Competition
  • Business Model
  • Post-Mortem
  • Key Lessons
  • Sources

AI-researched. Check the sources before making a decision.

Found a mistake? Let @oscrhong know.

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AeroFS (S10) at a glance

  1. Custody was the distinction. AeroFS provided familiar file sync while keeping customer data on infrastructure the customer controlled.
  2. Enterprise trust created friction. Security review and private deployment helped win sensitive accounts but made adoption expensive and slow.
  3. Amium changed the whole company. The cloud collaboration pivot introduced a new buyer, acquisition motion, analytics stack, and competitive set.
  4. The merger preserved pieces, not the product. Redbooth kept the combined business while AeroFS and Amium ended as standalone offerings.

Overview

AeroFS offered file synchronization without storing customer files on the vendor's servers. Its desktop clients moved data among infrastructure controlled by the customer, giving regulated and security-sensitive organizations a Dropbox-like workflow behind their own boundaries.

The company raised about $15.52 million and won enterprise customers, then moved beyond private file sync. In 2016 it launched Amium, a cloud collaboration product organized around files and conversations. That pivot changed both the hosting model and the buyer. A year later AeroFS merged with project-management company Redbooth. The combined business used the Redbooth name, AeroFS founder Yuri Sagalov became chief executive, and Amium shut down in December 2017.

The merger ended AeroFS as an independent company. Its original insight remains sound: storage location and access control can be product requirements rather than back-office settings. The harder question was whether a private sync engine could support a large standalone business once Dropbox, Box, Microsoft, and other suite vendors added enterprise controls.

Founding Story

Yuri Sagalov and Weihan Wang developed the technical basis for AeroFS through graduate work in distributed systems. They founded the company in 2010 and joined Y Combinator's Summer batch.

The early pitch was unusually clear: a Dropbox-like folder that ran inside the customer's firewall. Files transferred directly among approved computers instead of passing through storage operated by AeroFS. Windows, Mac, and Linux clients made the system feel familiar to end users while information-technology teams retained custody.

AeroFS stayed in stealth for about three and a half years. By its public emergence in 2013 it had raised $5.5 million and said a financial-services firm had signed a 1,000-seat contract with almost no marketing. The quiet approach matched the buyer: large enterprises needed technical review, security validation, and deployment work before adopting a new file system.

Timeline

  • 2010: Sagalov and Wang founded AeroFS and entered YC's Summer batch.
  • September 2011: AeroFS publicly described its peer-to-peer file-sync system for Windows, Mac, and Linux.
  • 2013: The company emerged from extended stealth with $5.5 million raised and early enterprise deployments.
  • July 2015: AeroFS raised a $10 million Series B from Avalon Ventures and NHN Investment.
  • August 2016: The company launched Amium, shifting from premises-based file sync toward cloud-hosted team collaboration.
  • January 2017: AeroFS described the Amium move as a significant change in product, sales, analytics, and support.
  • September 13, 2017: AeroFS merged with Redbooth. The Redbooth name survived, and Sagalov led the combined company.
  • December 15, 2017: Amium shut down, and the standalone AeroFS developer surface later disappeared.

What They Built

The original AeroFS product synchronized selected folders across customer-controlled devices and servers. Because AeroFS did not hold the file contents, enterprises could apply their own security, retention, and compliance controls. Desktop clients hid much of the distributed-system complexity from employees.

The product sat between consumer convenience and enterprise custody. Administrators wanted control over where data lived, while users wanted a folder that updated automatically. AeroFS made those requirements coexist without requiring every employee to operate a virtual private network or manually copy files.

Amium broadened the scope. It connected files with conversations, version history, and collaboration across organizational boundaries. The move also reversed part of the original premise: Amium was cloud-based and sold to work teams rather than solely to technical buyers. AeroFS had to learn online acquisition and product analytics after years of enterprise sales.

Market Position

Target Customers

The first target was an organization unable or unwilling to store sensitive files with a third-party cloud provider. Financial services, healthcare, professional services, media, telecommunications, and automotive companies fit that profile. Amium targeted a wider group of teams that wanted messages, files, and work context together.

Market Size

Enterprise file sharing was a large category, but AeroFS's strict private-custody segment was narrower. Customers needed both a compliance constraint and enough distributed collaboration pain to justify deployment. The Amium pivot pursued a broader collaboration market at the cost of entering a more crowded field.

Competition

AeroFS competed with Dropbox, Box, Microsoft file services, private-cloud storage, network drives, and managed transfer products. Its custody model was a meaningful technical distinction. Over time, larger vendors improved encryption, administrative policy, audit logs, hybrid deployment, and compliance programs.

Amium then faced Slack, Microsoft Teams, Box, Dropbox Paper, and numerous project-management systems. Redbooth already offered tasks and project coordination, which made the merger complementary while showing how much product surface a unified collaboration suite required.

Business Model

AeroFS sold enterprise seats and deployment software. Larger customers brought contract value, though sales, security review, installation, support, and desktop compatibility increased the cost of each account. A free allowance for small teams could seed evaluation but did not remove enterprise procurement.

Amium adopted a cloud subscription model aimed at self-service teams. That changed the acquisition engine from identifiable information-technology buyers to a wide online audience. It also made user behavior observable, creating a new need for product analytics, engagement work, and higher-volume support.

Post-Mortem

AeroFS solved a sharp security problem but operated between two expanding platform categories. Cloud file vendors added enterprise governance. Infrastructure vendors offered private and hybrid storage. Collaboration suites absorbed files into chat, tasks, and documents. A specialized sync layer risked becoming a component rather than the system employees opened each day.

The Amium pivot acknowledged that pressure. It sought a daily collaboration surface, but it also exchanged a differentiated custody model for a crowded cloud market and an unfamiliar sales motion. AeroFS had to change product, customer, hosting, analytics, and go-to-market at once.

The Redbooth merger combined Amium's file-centered collaboration with an established task and project product. This was not a simple acquisition: the combined company kept Redbooth's name while AeroFS's chief executive took leadership. Terms and ownership were undisclosed. Amium's shutdown three months later confirms that the standalone product did not continue.

The original AeroFS brand and developer program also ended. Technology may have informed the combined product, but customers could no longer buy the independent proposition. The outcome suggests that private file sync was valuable, yet too narrow against suites with stronger distribution and broader daily use.

Key Lessons

  • Custody can be a core requirement. Some customers cannot accept a vendor-hosted copy, regardless of consumer convenience.
  • Enterprise trust slows the loop. Security review and deployment create defensibility and long sales cycles at the same time.
  • A pivot can change every operating assumption. Amium changed hosting, buyer, sales motion, analytics, and competition together.
  • Daily workflow owners absorb components. File sync became one function inside broader collaboration and project suites.
  • A merger can preserve capability while ending the product. Redbooth gained the team and technology; AeroFS and Amium ceased as independent offerings.

Sources

  • Y Combinator: AeroFS
  • TechCrunch: AeroFS inside the firewall
  • Y Combinator: AeroFS raised $5.5 million
  • VC News Daily: AeroFS Series B
  • CMSWire: AeroFS and the Amium pivot
  • Redbooth: AeroFS merger announcement
  • CB Insights: AeroFS financials
  • API Evangelist: AeroFS historical profile