SAN FRANCISCO -- Valuations being given to the most promising of the latest crop of Internet companies just keep going up and up as investors open their wallets ever wider.
Dropbox, which has already raised hundreds of millions, plans to raise even more: $250 million more to be precise, at a nosebleed valuation of $8 billion, according to published reports.
For those keeping track, that’s more than double its last funding round that valued the company at $4 billion.
And bear this in mind: tech financiers are willing to throw that kind of cash and that kind of valuation at the 5-year-old online storage service even though its revenue growth is slowing down.
The San Francisco start-up, which says it has 200 million users and reportedly will have sales of $200 million this year, announced last week that it’s making a major –- and costly -- play for the business market in hopes of kick-starting revenue growth again. It’s playing catch-up with technology giants such as Google and is looking to compete with rival start-up Box which has been focused on that market for years.
“Dropbox has continued and strong momentum,” the company said in an emailed statement.
The $1-billion valuation club in Silicon Valley used to be fairly exclusive. Now a growing number of start-ups –- many of which have no business model or at best a fledgling one –- sport multibillion-dollar valuations, giving some people dot-com déjà vu.