Cloud storage provider Dropbox is under pressure from activist investor Half Moon Capital to eliminate the company's founder control. Half Moon Capital, a small hedge fund, has criticized Dropbox's slowing revenue growth and its payment tier strategy.

The hedge fund seeks to dismantle Dropbox's dual-class share structure, which grants CEO and co-founder Drew Houston a significant voting supermajority. The proposal argues that this structure has hindered shareholders from holding management accountable following "significant missteps."

Half Moon Capital holds approximately 40,000 Dropbox shares, valued at about $1.1 million. The proposal requires a majority vote for approval, making Houston's support essential for its passage. Houston currently holds around 77% of the voting rights due to his Class B shares, which carry ten times the voting power of Class A shares.  

Half Moon Capital believes that the proposal, which will be voted on at the company's annual meeting, will compel management and the board to implement additional changes. In October 2024, Dropbox announced plans to reduce its global workforce by 20%, following a previous announcement made in 2023.