Dropbox set for $8B valuation with funding round - report - Mobile World Live

Dropbox set for $8B valuation with funding round – report

19 NOV 2013

Online storage player Dropbox is looking to secure investment that would value the company at $8 billion, reports Bloomberg. Sources said talks with potential investors to secure $250 million in funding are at an early stage.

Investors valued Dropbox, which offers apps for Android, iOS, BlackBerry and Amazon’s Kindle Fire, at $4 billion in late 2011. The service now has more than 200 million users and four million business customers.

The company raised $250 million in 2011 from Goldman Sachs and venture firms Sequoia Capital, Index Ventures and Accel Partners.

However, sources said revenue growth has slowed in recent years as the likes of Google and Amazon have started to offer online storage, while new players such as Box have also had an impact.

Dropbox sales in 2012 reached $116 million, compared with $46 million in 2011 and $12 million the year before. The company expects sales to pass $200 million this year.

In a bid to boost revenue growth, Dropbox is looking to develop its business user base, which will require investment in marketing, sales people and engineers — and potential software acquisitions.

It recently introduced a new product that provides storage that divides personal and business items into two lockers with different passwords and files. The service allows IT staff to remotely wipe corporate content and monitor data flow.

In March, Dropbox acquired the maker of email app Mailbox, marking its first move beyond its core file-sharing service. CEO Drew Houston said the Mailbox app will continue as a standalone service with Dropbox making use of the technology to enhance features in its apps, such as email attachments.

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Tim Ferguson

Tim joined Mobile World Live in August 2011 and works across all channels, with a particular focus on apps. He came to the GSMA with five years of tech journalism experience, having started his career as a reporter... More

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