We’ve heard from multiple sources that Dropbox is finally moving on raising its next venture round and it’s a whopper. They’ve had preliminary conversations with several investors, several solid offers they’ve passed on earlier this year and are meeting with investment banks to handle the offering now. Allen & Co. is said to be in the mix, but we’ve also heard nothing has been finalized.
The real news are the numbers we’re hearing from multiple sources close to the company. Dropbox is looking to raise between $200 million and $300 million according to these sources. In terms of valuation, the company has already had multiple offers at a valuation north of $2 billion range, and recently more informal discussions in the $8 billion-valuation range. Our sources expect the valuation to end up in the $5 billion to $10 billion range.
That’s quite a step up from its previous funding rounds which have totalled a tiny $7.2 million.
There will no doubt be a secondary component to the round, but our sources say it’ll be less than 50% of the total amount raised. We’ll update as soon as we know more.
Dropbox was founded in 2007 by Drew Houston and Arash Ferdowsi. Frustrated by working from multiple computers, Drew was inspired to create a service that would let people bring all their files anywhere, with no need to email around attachments. Drew created a demo of Dropbox and showed it to fellow MIT student Arash Ferdowsi, who dropped out with only one semester left to help make Dropbox a reality. Guiding their decisions was a relentless focus on crafting a...
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