Dropbox seeks millions in funding, says it's worth $8 billion

With Dropbox appraising itself at $8 billion, has the valuation of tech companies officially gone too far?

Dropbox, a service that allows users to store large files online and access them from multiple devices, continues to grow.

Online storage company DropBox believes it is worth almost a third of Twitter.

The San Francisco-based start up is seeking to raise $250 million more in funding after already raising hundreds of millions, which would bring the valuation of the company to $8 billion. Though the source of this funding has yet to be seen, the move has raised some concerns in tech and business circles that Silicon Valley may be on the verge of another bubble.

The company has already raised $257 million in its five-year history, and says it makes more than $200 million per year in sales from more than 200 million customers. According to the company, more than 1 billion files are uploaded to the site every day, and more than 4 million businesses use its services.

So why the extra funding push? Dropbox is hoping to focus on making a more refined corporate product that would give IT staff an easy, secure way to manage employees’s personal and business files. The company has also been on an purchasing spree, snagging online sales app Sold and email app Mailbox in the past year, though the purpose of these two acquisitions still under wraps.

Drew Houston, chief executive of Dropbox, says he sees growth ahead for online storage and for the company.

“It’s a huge market,” he said, speaking at a conference in San Francisco on Monday organized by Salesforce, according to the New York Times. “The experience of Dropbox will be hugely different a year from now.”

This isn’t the company’s first financial foray: In its first funding drive in 2011, Dropbox raised more than $250 million and was valued at $4 billion.

However, though the online storage game may not appear to be the glamorous side of technology start-ups, the playing field has some fierce competition. Aside from competing with Microsoft, Google, Amazon, and other cloud services, snappy start-ups such as Box are seeking the same niche as Dropbox, which could create an intense rivalry and split in consumers.

Plus, with recent NSA online surveillance allegations and hacks on major tech companies, people are more wary of where they put their personal data than ever before.

Despite all this, it isn’t clear where Dropbox will get its funding, if it is successful, and it comes on the heels of a rapidly inflating tech valuation bubble which has caused some to raise concern. Pinterest, a social media site aimed at consumer products and shareable content, was recently valued at $3.8 billion despite no sign (yet) of revenue. Twitter, which recently filed its IPO is currently valued at $22 billion, though its revenue is far less. Snapchat, a temporary photo-sharing app, reportedly turned down a $3 billion cash acquisition offer from Facebook.

Is the tech world heading toward an upcoming Icarus moment? For now, the funding flight certainly seems to be soaring to dizzying heights. Whether its wings will burn remains to be seen.

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.

QR Code to Dropbox seeks millions in funding, says it's worth $8 billion
Read this article in
QR Code to Subscription page
Start your subscription today