Dropbox snags $250 million funding at $10 billion valuation - sources

SAN FRANCISCO Sat Jan 18, 2014 8:56am IST

Drew Houston, CEO and Co-Founder of Dropbox, speaks on stage during a fireside chat session at TechCrunch Disrupt SF 2013 in San Francisco, California September 9, 2013. REUTERS/Stephen Lam/Files

Drew Houston, CEO and Co-Founder of Dropbox, speaks on stage during a fireside chat session at TechCrunch Disrupt SF 2013 in San Francisco, California September 9, 2013.

Credit: Reuters/Stephen Lam/Files

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - Dropbox Inc has secured $250 million from a fund managed by BlackRock Inc(BLK.N) and other investors in a new funding round that values the provider of online storage services at almost $10 billion, according to two people familiar with the matter.

The sources declined to be named because the funding round was private.

Dropbox, the 6-year-old Silicon Valley startup many expect to go public sometime this year, is taking advantage of flush investors and skyrocketing valuations for fledgling tech companies.

The company has undergone tremendous growth amid the meteoric rise of cloud, or Internet, storage, which is expected to continue booming alongside mobile computing. Other companies, including Microsoft Corp (MSFT.O) and Amazon Inc (AMZN.O) are expanding into the cloud business.

Dropbox's other investors include Goldman Sachs (GS.N), Sequoia Capital, Accel Partners and Index Ventures.

Dropbox and Blackrock were not immediately available for comment. The Wall Street Journal originally reported the new funding round.

The startup's valuation has climbed alongside demand for online storage. The company was last valued at about $4 billion after a 2011 funding round.

Founded in 2007 by Massachusetts Institute of Technology graduates Drew Houston and Arash Ferdowsi, Dropbox rapidly accumulated users by touting its ease-of-use and polished interface that syncs files across multiple devices and operating systems. It last claimed 200 million users.

The company offers limited amounts of storage for free to individual consumers, who had been its initial focus, but analysts expect it to increasingly go after the deep-pocketed corporate market.

In November, it unveiled what it described as one of the most comprehensive upgrades to its service for businesses, including a feature that allows users to easily maintain both personal and corporate accounts.

Rival startup Box is also preparing to go public as early as 2014, Reuters reported in November. At its last funding round in December, it was valued at $2 billion.

(Editing by Jonathan Oatis and Richard Chang)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Economic Pulse

Economic Pulse

New govt promises low and stable tax regime for economic revival.  Full Article 

Global Growth

Global Growth

IMF cuts outlook, warns of stagnation risk in rich nations  Full Article 

Market Eye

Market Eye

Nifty retreats from record highs on profit taking.  Full Article 

Waning Enthusiasm

Waning Enthusiasm

Markets' post-election enthusiasm lost on consumers.  Full Article 

Banking Sector

Banking Sector

Banks not allowed to trade in bonds for infra lending - RBI.  Full Article 

Gold Imports

Gold Imports

Govt has no proposal to reduce gold import duty.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage