[10] He wanted to identify the neighbor who was letting their dog poop on his lawn but they were having trouble finding a security camera that made it easy to record, stream and monitor large amounts of data.

[11][12] Dropcam received early funding from technology investor Mitch Kapor,[13] and in June 2012, Dropcam secured $12 million in venture capital funding led by Menlo Ventures and previous investors, Accel Partners and Bay Partners.

[14] Dropcam has also received funding from Felicis Ventures and Kleiner Perkins Caufield & Byers.

[23] Duffy has said, “Moms are using it to catch their babies' first steps when they're not around, checking that older kids have arrived home safely; contacting children who are ignoring their cell phones; and sharing footage from birthday parties.”[24] Due to the success of Dropcam, several companies launched similar products and services in 2014 and 2015, such as SpotCam and simplicam.

The Cloud Recording service automatically saves video on a rolling basis, so users can review the past week or month of footage, depending on their plan.