Dropbox raises US$350m – now worth US$10bn

25 Feb 2014134 Views

Dropbox has successfully raised US$350m in a funding round that values the cloud storage player at an estimated US$10bn, recent reports say.

This is more than double the last valuation of US$4bn, when Dropbox raised funding in 2011.

Key investors in the latest round are BlackRock, Fidelity and T. Rowe Price.

The company has so far raised more than US$257m in total.

Y Combinator originally seeded Dropbox, with follow-on seed funding of US$1.2m from Sequoia Capital and Pejman Nozad.

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A US$6m funding round followed in 2008, led by Sequoia and Accel Partners.

A US$250m funding round last year saw U2 rockers Bono and the Edge join Sequoia, Accel Goldman Sachs and a consortium of veteran Silicon Valley investors, including Greylock Partners and Benchmark, as investors in Dropbox.

Even though Dropbox has raised the US$350m, it is not clear what it plans to do with the funding or if it actually needs it in a hurry.

At the Dublin Web Summit in October, Dropbox CEO Drew Houston said, “Even when we raised US$250m we haven’t spent it – we were already profitable. We don’t need capital so we have the flexibility. It certainly helps in terms of currency and makes it easier to acquire companies.”

Dropbox on web image via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years