How much money does DropBox need? It hasn’t been long since the cloud-storage and multi-device synching company raised $257 million. Well, it’s banging the drum for another round of funding. This time the company is gunning for another $250 million. This will value the company at $8 billion. Quite odd considering the company hasn’t used up its last round. In fact, considering its revenue numbers, it might not need to raise money at all. The company, after all, has been enjoying revenues in the hundreds of millions annually. Some observers say this might be a move to shore up its war chest while the tech investment market is quite receptive to funding rounds thanks to Twitter and Facebook’s recent successful IPOs. Others point to a possible IPO ramp up since one key benefit of raising funding is to value the company prior to initiating the IPO process. This is somewhat more speculative since DropBox founder Drew Houston hasn’t publicly revealed what DropBox’ IPO timeline is. In contrast, its enterprise competitor, Box, has announced a tenative 2014 IPO roll out.
For people who have experienced the effects of stock market irrational exuberance the hard way during the Web 1.0 crash and 2008′s Finance Crash, there is a worrying trend with ballooning valuations, investors going gaga, people thinking the gravy train will keep chugging on. It’s not hard to get caught up in all of the excitement though. After all, DropBox started as a Y Combinator company and is now a behemoth in the consumer online storage space and is actually generating revenues. Let’s just hope that the market factors in the fact that many of today’s crop of Dot Coms actually make money instead of the Web 1.0 money losers that got swept out by the Wall Street tide.