Technology companies seek high valuations- report
A report from The New York Times' The Dealbook said young technology firms were looking for high valuations. After over a week of trading, Twitter has been valued at over USD 22 billion. Pinterest also raised USD 225 million recently and now carries a valuation of UDS 3.8 billion. Last week, Snapchat snubbed a USD 3 billion offer from social media giant Facebook despite the fact that the photo sharing application has not yet posted revenues. Box, an online storage provider, now has a value of over USD 1 billion and is set to go public in 2014.
The latest to join the fray of technology companies seeking high valuations is Dropbox. The five- year old startup based in San Francisco is looking to raise USD 250 million in its latest funding round. Citing sources with knowledge of the matter, the report said the target amount would value the online storage firm at over USD 8 billion which would double the company's valuation. Two years ago, Dropbox gathered USD 250 million in its fundraising which valued the firm at USD 4 billion.
With over 400 employees and 200 million active users this year, Dropbox is experiencing fast growth. A year ago, online two million businesses use its platform. That figure is now pegged at over 4 million. It could even go public now especially since there is strong investor appetite among investors for new technology firms, according to the report.
However, sources who know how the company thinks told The New York Times' The Dealbook that the most recent funding round was an opportunity for the firm to stay private for a few more months. This will allow the firm to further increase its valuation when it will go public. A likely IPO would most likely be held next year, the report said.