Dropbox Value Said to Be $10 Billion in BlackRock Funding
Dropbox Inc., the provider of online document storage and collaboration tools, raised financing from BlackRock (BLK) Inc. and others that values the company at $10 billion, said a person with knowledge of the deal.
BlackRock led the investment, which totaled $250 million, said the person, who asked not to be identified because the transaction hasn’t been announced. Dropbox, based in San Francisco, previously raised money in 2011 at a $4 billion valuation.
With the current financing, Dropbox is one of the most highly valued technology startups, a group that includes Pinterest Inc., Airbnb Inc., Square Inc. and LendingClub Corp. Dropbox, which gained popularity by giving free storage and sync services to consumers, is going after businesses that are moving to the cloud, bolstering competition with Box Inc.
Dropbox has about 200 million users, or 10 times as many as it had at the end of 2010. Its revenue has increased 20-fold since late 2010 and is now in the hundreds of millions of dollars per year, people familiar with the company said in November.
The Wall Street Journal earlier reported on the funding round. Bloomberg News reported in November that the company was seeking $250 million at a valuation of more than $8 billion.
Representatives from Dropbox and BlackRock didn’t respond to requests for comment.
BlackRock, the world’s largest asset manager, joins a growing list of public market investors that are buying stakes in private companies. T. Rowe Price Group Inc. (TROW), Goldman Sachs Group Inc. and Tiger Global Management LLC are all boosting their bets on technology startups.
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