Tuesday 12 December 2017

Dropbox values itself at $8bn as it seeks cash

Ashlee Vance

Dropbox is seeking to raise $250m (€185m) in new funding, in a round that would value it at more than $8bn (€6bn).

It was valued at $4bn in an October 2011 financing.

The San Francisco-based company, which provides a cloud-storage service, has already raised $257m in total funding over the past five years.

Its past investors include venture firms Sequoia Capital and Accel Partners, as well as startup incubator Y Combinator.

The company wants a new cash infusion to fuel its growing ambitions, the sources added.

Dropbox told the Irish Independent last month it was scouting for a Dublin office.

While it started by aiming its service at consumers, it has since expanded into providing cloud storage to businesses.

Earlier this month, the firm rolled out new services for enterprises, which give the company's information-technology administrator a centralised spot to manage security and legal settings.

The fundraising plans come as some Silicon Valley startups ride a valuation surge that has built up over the course of the past few months, amid a successful Twitter Inc. IPO.

Online scrapbook Pinterest, which makes little revenue, last month raised $225m in a financing valuing it at $3.8bn.

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Mobile photo-sharing application Snapchat, also has no revenue, turned down a $3bn acquisition offer from Facebook.

LendingClub Corp, the largest US peer-to-peer lender, was this month valued at $2.3bn in a secondary share sale. Dropbox chief executive Drew Houston has led the company on a fast-growth curve over the past few years.

It just reached 200 million users, or about 10 times as many people as it had by 2010's end.

Its revenue has grown 20-fold since and is now in the hundreds of millions of dollars per-year range, according to those familiar with its funding plans. Yet the company needs to invest as it moves into serving businesses, spending to acquire pricey salespeople and engineers and purchasing various pieces of software. (Bloomberg)

Irish Independent

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