Dropbox Chooses Investor Group, Valuation Set at $5+ Billion

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Gillmor Gang 8.13.11 (TCTV)

We’ve been tracking the twists and turns of the Dropbox mega funding round feeding frenzy for over a month now. In July Sarah Lacy wrote that they’d be raising $200 million to $300 million at a $5 billion or higher valuation. A week ago MG Siegler wrote that the auction process was over and Dropbox was considering bids as high as $10 billion.

The company has now chosen which investors will lead and participate in the round, we’ve heard from one of our sources. The final valuation will be less than $6 billion, and we’ve heard that the original estimates of a $200 million – $300 million round are still accurate. We do not yet know who’s leading the round or otherwise participating, but that information will probably become available soon.

In the end Dropbox didn’t choose the investor with the highest valuation bid, we’ve heard. Look for the round to close and be announced in the coming weeks.