Upstart Start Up Dropbox raises $250 Million in second round financing. Venture capitalists are willing to bet a quarter-billion dollars that the four-year-old upstart can take on tech heavyweights like Amazon, Apple and Google in online digital file storage world knows at The Cloud.
Founded in 2007 by two MIT grad students, Arash Ferdowsi and Drew Houston Dropbox has scored the backing of seven of the leading VC firms including, Benchmark Capital, Goldman Sachs, Greylock Partners, Institutional Venture Partners, RIT Capital Partners and Valiant Capital Partners. Early investors Accel Partners, Sequoia Capital, and angels Hadi and Ali Partovi also participated in the funding round.
Co-founders Houston and Ferdowsi turned down a “prospective nine-digit” buyout offer by “The Man” himself, Steve Jobs, of Apple back in 2009. Houston said in an interview, that he want’s to build an independent company. He believes they can build the only application a person needs to effortlessly store and share all their digital files among multiple devices, from PCs, laptops and cell phones, to potentially televisions and electronics in cars. The “Untold Story” of “The One That Got Away”, Steve Jobs play for the company is the cover story of Forbes November 2011 issue, by Victoria Barret.
The demand is so great that Dropbox now has surged to over 50 million members,l with a new one joining every second, who save one billion files every three days. The company expects to triple that user base in 2011. Comparatively, the company had about 4 million users this time last year.
So what’s on the horizon for Drop Box, and it’s young superstar co-founders? They say it’s Not all about the money, and they are out to help people. As people’s lives become more digital, consumers and businesses have to trust the company with cherished and sometimes crucial data. Dropbox says it keeps a one-month history of files and uses encryption technology to keep everything safe.
“We’re dedicating our lives to solve this problem at scale,” Houston said. “Our biggest asset isn’t our servers or money in the bank, it’s the trust of tens of millions of people.”