(Reuters) - Dropbox, the company behind the popular virtual file cabinet, is branching out to small and medium-sized businesses with the new service "Dropbox for Teams."

The San Francisco-based company allows people to access documents, photos and videos from several different places such as laptops, smartphones and computers provided they have downloaded Dropbox on each device.

A certain amount of storage is free though the company charges a user for more capacity.

With Teams, Dropbox will allow a business to let five users access 1,000 gigabytes of storage for $795 per year. Each additional user costs $125, which also comes with an additional 200 gigabyte of storage.

Dropbox launched Teams after realizing that 1 million businesses were using its virtual file cabinet already to transfer files and documents, said Sujay Jaswa, vice president of business development at Dropbox.

To entice customers to upgrade to Teams, Dropbox offers such services as centralized billing and phone support.

Dropbox has 45 million users and competes with the likes of Google Inc's Docs, Apple Inc's iCloud and Box.net.

The company recently closed a $250 million round of funding giving it a valuation of $4 billion, according to reports.

(Reporting by Jennifer Saba, editing by Bernard Orr)