Box Inc., the cloud-storage provider that filed for an initial public offering earlier this year, is in talks to raise about $100 million at a valuation of at least $2 billion, according to people familiar with the matter.
The Los Altos, California-based startup is holding discussions with investors including TPG Capital after delaying its IPO, said the people, amid a bumpy ride for technology companies in the stock market earlier this year. Raising new funds offers more flexibility for companies in the timing of when they go public. Box’s talks are at an early stage and the terms of the financing may change, said the people, who asked not to be identified because the conversations are private.
“Our plan continues to be to go public when it makes the most sense for Box and the market,” Ashley Mayer, a spokeswoman for Box, said yesterday “As always, investing in our customers, technology, and future growth remains our top priority.”
Owen Blicksilver, a spokesman for TPG at Blicksilver Public Relations, declined to comment. The talks with TPG were reported yesterday by The Wall Street Journal.
Box, led by Chief Executive Officer Aaron Levie, filed to raise $250 million in an IPO on March 24, using that figure as a placeholder without giving the number of shares or price. Box was valued at $2 billion in its last funding round in December.
Box was founded in 2005 by Levie and Dylan Smith, while the two were still college students. They raised seed funding from Mark Cuban that year and then moved the business to Silicon Valley. Box has since raised hundreds of millions of dollars from investors including Draper Fisher Jurvetson, Meritech Capital Partners, Bessemer Venture Partners and Andreessen Horowitz, as well as Salesforce.com Inc.
Bloomberg LP, the parent of Bloomberg News, is an investor in Andreessen Horowitz.
Box is competing with fast-growing startups like Dropbox Inc., as well as some of the world’s biggest technology companies like Microsoft Corp., Google Inc., Apple Inc. and Amazon.com Inc. They’re all vying for users as consumers and employees shift from personal computers to iPads and smartphones. Box is going after industries like manufacturing, finance and media, where employees are sharing documents and data on a multitude of devices.