Dropbox is said to be in discussions with investors to raise between $200 million and $300 million with a $5 billion-plus valuation, TechCrunch reports. Allen & Co. is said to be one of the investors involved in talks. San Francisco-based Dropbox has already had offers at a valuation of $2 billion and up. The company's previous funding rounds totaled only $7.2 million, TechCrunch notes.
Story of Dropbox
Dropbox was founded in 2007 by Drew Houston and Arash Ferdowsi. Frustrated by working from multiple computers, Drew was inspired to create a service that would let people bring all their files anywhere, with no need to email around attachments. Drew created a demo of Dropbox and showed it to fellow MIT student Arash Ferdowsi, who dropped out with only one semester left to help make Dropbox a reality. Guiding their decisions was a relentless focus on crafting a simple and reliable experience across every computer and phone. Drew and Arash moved to San Francisco in fall 2007, secured seed funding from Y Combinator, and set about building a world-class engineering team. In fall 2008, Sequoia Capital led a $7.2M Series A with Accel Partners to help bring Dropbox to people everywhere.