I'm happy for the founders (not sure about the VCs...couldn't have made much if $6.5M raised) but for the life of me don't understand why it's worth $20M. I was an early user of Xoopit (for Gmail) and uninstalled it after a week. Using search was faster and easier.
Edit: at least for Gmail, Labs can easily add Xoopit's functionality.
Never underestimate the huge mass of non-technical people on the internet. I found it refreshing to stop by wifi-enabled cafes and just LOOK at what people where doing online. You will be surprised.
This would be the killer app for my mother who uses her GMail account to store photos people send her to her ISP email where the quota is low. But, she uses Internet Explorer, despite my attempts to convert her to Firefox. This is great bait.
With productivity apps you're selling to two audiences: 1) the actual end user, and 2) the tech geek who is set to choose an appropriate application for the end user.
From my experience, stuff like AVG anti-virus, Adaware, Spybot S&D and LogMeIn started spreading from the ground up, spearheaded by tech support guys and the token kid in the family who is "good with computers". As more and more elderly and non-technical people move to web applications (and not just websites) you will see a new category of bi-targeted applications that help tech savvy people "help" and "reach" their non-geek family and friends. Case in point, YOU looking for stuff for your mother (note this new stuff is a "web app" :-)
Web app marketing will need to shoot from a double-barrel, and a new style of "Easy enough for your boss/family to use" marketing will have to be born.
Assuming VCs received the $6.5M before proceeds and let's say the VCs owned 50% and each of the 2 founders 10%, that comes out to $1.35M per founder. Not bad for 2 years work (plus learning, reputation, etc.).
Edit: at least for Gmail, Labs can easily add Xoopit's functionality.