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back to article Dropbox: We're worth $8 BILLION and we'll sell you a 3 per cent slice

File-sharing and online storage firm Dropbox is looking to raise $250m in additional funding, which would value the company at a level that's astronomical even for a tech firm - $8bn. Dropbox is trying to raise the cash to add to its sales and engineering teams and acquire technology, two people with knowledge of the plans told …

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At least with dropbox there is an actual business and potential to move into new markets (enterprise) with there new features and offerings, the Twitter valuation is just plain stupid. 20 billion!? Are dropbox making money? Or just burning through anything they are making?

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Dropbox vs Twitter

The difference is Dropbox has MS/Amazon/Google as potential competitors and nothing particularly unique in their solution (i.e. while they may have better software/features at present there is nothing to stop their larger competitors matching those) and all are in a race to the bottom for cloud storage.

At least Twitter has a large customer base who are likely to pay for a service if Twitter ever manage to figure out how....

Of course, all of this is completely irrelevant come IPO time...

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Re: Dropbox vs Twitter

"if Twitter ever manage to figure out how...."

Been a long time and nothing yet - their only hope now is to get embedded in government policy.

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Anonymous Coward

"Pinterest is pegged at around $3.8bn - before it even has much of a plan on how to make money."

I think you have answered your own question. These useless organizations make bundles for their owners at IPO which is all that matters. Anything after that is icing on the cake.

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Re: make bundles for their owners at IPO

Shame a company can only IPO once: I'm sure some business school whizz's are working out a business strategy based on regular IPO's: You don't own the shares, you only lease them...

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Snapchat at 3bn or Dropbox at 8?

I'll take Dropbox.

Apple has no iOS finder and the times I try to rely on Google Drive it often fails.

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Anonymous Coward

Re: Snapchat at 3bn or Dropbox at 8?

Who owns the copyright of files placed on DropBox's servers? My guess DropBox will claim (eventually if not now) that they do and 8 beeellion buys good lawyers, not that they will need them when class actions are deemed illegal.

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$250M to keep the valuation?

Bandwidth etc cost real money, Dropbox gives away a lot of free accounts. Unless their paid accounts also pay for all their free accounts plus business overhead, this $250M is propping up an unsustainable business model. If you think about that, $8Bn sounds even more stupid.

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Devil

In which case

I value my company doesnotexist.co.uk at 1.2 billion dollars, just so you know i am willing to part with some shares before the massive IPO.

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Re: In which case

Why are you valuing your UK company in that nasty foreign currency?

Pounds are what we use here, sir.

Now that's dealt with, where can I send my money?

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SVV
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Re: In which case

Please send your pounds to :

Martha Lame-Fox

Govt. Dotcom Hype Tsar,

Silicon Roundabout,

London

Remember that the value of your investments can go down as well as up in smoke.

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Anonymous Coward

Don't worry,

it can add ads to your image files when they are synced via dropbox. I'm sure users will be happy with that.

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Stop

My privacy is worth more

than 8 BEEEEEELLION dollars.

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Mushroom

Bubbles

The mistakes of the dot com boom are being made again and a lot of people are going to get their fingers burnt. Offering 3 billion for snapchat is the most ridiculous thing I have ever heard. All these tech companies have gazillions of customers using their platforms because they are free and to convert these numbers to some wacky valuation is a clear indication that no lessons whatsoever have been learned.

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Someone update me ...

... whats exactly is the difference between dropbox and a web account with ftp server access other than a fancy front end?

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Re: Someone update me ...

Sync/replication with automatic backup, pretty much. A dropbox folder shared between several people/devices synchronises a local copy for each person to use natively without network paths etc. It's a convenience, although $8Bn suggests someone's been at the Meth.

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Re: Someone update me ...

"Sync/replication with automatic backup, pretty much"

So a fancy version of rsync then. BFD.

"It's a convenience, although $8Bn suggests someone's been at the Meth."

There's always a sucker willing to part with their money I guess.

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Re: Someone update me ...

I wouldn't under value the "fancy front end" - basically it is what both Apple and Microsoft have been selling for all these years...

Personally, being a fan of secure personalised FTP style services, I appreciate the convenience of tools/utilities like Dropbox, particularly when they can be readily integrated into other applications and a user's workflow.

The valuation doesn't seem too unreasonable, it only represents circa $40 pa from each of their 175~200M users.

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