You have got to love Dropbox. There’s just something about a piece of software that allows you to synchronize all your devices so that wherever you are in the world, you can always access the latest version of your data. Even if your hardware is stolen or crashes or get destroyed, you will always have a copy of your latest data somewhere in the Cloud. When you buy replacement devices or when you get your computer fixed, you can then run Dropbox so your unit will get synchronized with the version stored online. In a short period of time, you could have all your files back with nothing lost or damaged. How awesome is that?
Well, it appears that more and more investors think that this concept of cloud-based data management is so awesome that they are dropping serious money into Dropbox. The latest round of funding that this hot, up-and-coming company closed has brought in a total of 250 million dollars. This means that investors have given Dropbox a pre-IPO value of 10 billion dollars. Usually, when companies reach this stage, only one of two things happen: either they get bought out by a larger company or they go IPO. The latter is probably the option Dropbox executives are shooting for. After all, the stock market is red hot right now and tech stocks are riding high. Considering the recent tremors and warning signs that the stock market might implode soon, the window of opportunity for Dropbox and others that want to go IPO is rapidly shrinking. If I were an official of or an adviser to this company, I’d start filing the IPO papers ASAP.
The alternative isn’t so bad either. Getting bought out by a larger company that could use Dropbox could help expand user base and ride along with a great brand name. The usual suspects come to mind with Microsoft on top of the list. Microsoft needs to stay relevant in the fast evolving technology space plus Microsoft has deep pockets with billions of dollars in cash. If it needs to, it can probably drop ten billion dollars on Dropbox without batting an eye. Regardless, Dropbox needs to make a move soon.