Things have got a little better for Silicon Valley online storage company, Dropbox. It recently raised $250 million from outside investors valuing the firm at a cool $10 billion.
The deal was led by a division of BlackRock Inc., the world’s largest investor with over $4 trillion (yes, $4 trillion) in assets under management. The funds from the Series C round go towards their on-going product development in enterprise software which promises to be a money maker for the firm.
According to the Wall Street Journal, Dropbox made about $200 million in revenues in 2013. This is up from $116 million and $46 million in 2012 and 2011 respectively. This continuous increase in revenues is highly anticipated by investors as the valuation represents 50x 2013 revenues.
This represents an ongoing trend of public investors including hedge funds, investment banks and private equity companies who are looking to cash in on successful Silicon Valley firms. Examples include Goldman Sachs’ investment in 2011 about a year before its IPO, Fidelity Investments invested in Pinterest in 2013, and Tiger Global Management’s investment in Facebook.
Earlier investors in Dropbox include Index Ventures (NastyGal), Accel Partners (Facebook), Sequoia Capital and Goldman Sachs.