Seeking Alpha

Latest round gives Dropbox $10B valuation

  • Cloud storage company Dropbox's latest funding round gives it a $10B valuation, the company today confirmed in an SEC filing. The funding size was for $325M, with an additional $25M to be added by a strategic investor. In its last round 3 years ago, the company was valued at $4B.
  • GSV Capital (GSVC) is an investor in Dropbox.
Comments (6)
  • positivethoughts
    , contributor
    Comments (2011) | Send Message
     
    So, this company is worth twice the value of BBRY?
    24 Feb 2014, 04:17 PM Reply Like
  • SimonSaysShort
    , contributor
    Comments (113) | Send Message
     
    Well their product is in demand and they appear to have carved out a bit of a moat. Ohh and they are growing rather than shrinking...so that is a bonus.
    24 Feb 2014, 04:28 PM Reply Like
  • divtra
    , contributor
    Comments (147) | Send Message
     
    While I use and like Dropbox(having free 30GBs is nice due to various promotions) I do wonder about that moat.

     

    They have various strong competitors, Google Drive, MSFT Skydrive, Apple iDrive(unsure of name here) and also another similar strongly growing startup Box (which is more enterprisely) not to mention hundreds of smaller startups.

     

    Mind you, most of those competitors have made blunders (not keeping the offerings simple or cross platform enough for one).

     

    I am not seeing real network effects with Dropbox, it is a nice service, but it is not that much pain to go to a different service.

     

    It could be that they become like Google search, good enough that most people use it and do not see point in switching to something slightly better(secure or what not).
    25 Feb 2014, 07:44 AM Reply Like
  • Bouchart
    , contributor
    Comments (799) | Send Message
     
    Every tech start-up out there better have an IPO or sell themselves to Facebook or its ilk. Do it now, before investors realize that these start-ups have easily duplicated businesses.
    24 Feb 2014, 04:53 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (6805) | Send Message
     
    Yep please sell and let GSVC unload shares at massive profits.
    25 Feb 2014, 03:52 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9550) | Send Message
     
    I never thought 1999 would return so quickly.

     

    I think there will be a TON of tech bubble sob stories in 2016-2017.

     

    From a year ago...

     

    http://onforb.es/1fOQhRW

     

    :::Let us assume their net margins are 33% and that could give a net profit of $133 million and a 4 Billion valuation means a 30 P/E (defined as: total value of the company/net profits). Not too bad, given that average PE for publicly traded companies is about 22 and for many pre-IPO companies the ratio is in the triple digits.:::

     

    Now that PE is ~75!!
    24 Feb 2014, 07:42 PM Reply Like
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