Published on February 27, 2014
Storage Wars Continue: Dropbox vs Box VC Experts Intelligence Team Every entrepreneur who aspires to raise capital looks forward to "talking valuation" with potential investors. Some dream about it, only to wonder, once a deal has closed, what exactly they have agreed to. Many people end a negotiation, agree to terms, and walk away unclear as to how the final valuation of the company was determined. The entire topic of valuation is often shrouded in mystery, largely because of the private nature of the venture capital industry and the extent to which valuation methodology is rarely openly discussed. A valuation is a function of a myriad of elements, none of which will necessarily apply equally when assessing any two companies. Factors that influence a valuation include:  • The current and expected future valuations of comparable companies in the public and, when available, private marketplace • The supply and demand for capital at the time of financing • Intangibles unique to a specific company, including the quality of a management team, a company's competitive advantage, and its likely pace of revenue growth and profitability • The nature and timing of an expected exit for the investor • The implications of future capital raises, as well as needs to expand a company's options pool on the company's capital structure, going forward With the confirmation of Dropbox's $325M raise we have calculated a post money valuation at over $9 billion. Looking at their direct competitor Box, we noticed some differentiating factors that set the two seemingly similar companies apart. First, with their Series C round Dropbox has a higher valuation than Box at their Series E-1 round. Second, the Price Per Share is drastically different if you compare both Series C rounds: Dropbox at $19.01 and Box at $1.28. However, interestingly enough the current price per share for Box is $18.00 which is very close to Dropbox's $19.01. As the storage wars heat up we wanted to compare the two companies and have provided data on both companies from the VC Experts Intelligence database below.  "Valuation: Fair Market Value and the Use of Comparables" - Joe Bartlett, Founder and Chairman of VC Experts
Preferred vs. Common Price Per Share With Valuation
Most Recent Financing Round DROPBOX INC Date Amount Valuation Est. Fully Diluted Shares 01/29/2014 $325.00M $9,379,097,564 491,021,379 Preferred Price Per Share $19.10 Round: Series C Direction: Up Round Liquidation Preference: Pari Passu Liquidation Multiple: 0-1x Stock Type: Conventional Convertible Capped Participation: No Anti-Dilution: Weighted Average Redemption: No Cumulative Dividends: No Dividend Rate: 8% Pay to Play: No BOX INC Date Amount Valuation Est. Fully Diluted Shares 12/06/2013 $100.00M $2,182,989,896 121,277,217 Round: Series E-1 Direction: Up Round Liquidation Preference: Pari Passu Liquidation Multiple: 0-1x Stock Type: Conventional Convertible Capped Participation: No Anti-Dilution: Weighted Average Redemption: Yes Cumulative Dividends: No Dividend Rate: 8% Pay to Play: No Preferred Price Per Share $18.00
Investment Amounts (M)
General Information Dropbox: Key Management • Schreier, Bryan - Director • Houston, Drew - Founder, CEO, Director • Ferdowsi, Arash - Founder, Director Box: Key Management • Levie, Aaron - CoFounder, CEO, Director • Smith, Dylan - CoFounder, CFO, • Address: 185 Berry Street Director • Geographic Region: Silicon • Levin, Dan - COO, Valley Director • Industry: IT Services, • Stein, Josh - Director Software, Business Products • Hamid, Mamoon and Services Director • SIC Codes: 7374 - Computer • Reiner, Gary Processing and Data Director Preparation and Processing • Evan, Dana Services Director • NAICS Codes: 518210 - Data • Fu, Winston Processing, Hosting, and Director Related Services • O'Driscoll, Rory • Legal Counsel: Fenwick & Director West LLP • Company Website: • Address: 4440 El http://www.dropbox.com/ Camino Real • Geographic Region: Silicon Valley • Industry: Business Products and Services, IT Services, Software • SIC Codes: 7374 Computer Processing and Data Preparation and Processing Services • NAICS Codes: 518210 - Data Processing, Hosting, and Related Services • Legal Counsel: Perkins Coie LLP • Company Website: www.box.com/
Dropbox: Investors • Accel Partners & Co Inc • Greylock Partners LLC • Benchmark Capital • Goldman Sachs & Co • Index Ventures • Institutional Venture Partners • RIT Capital Partners PLC • Sequoia Capital • Undisclosed Firm • BlackRock Private Equity Partners Box: Investors • Draper Fisher Jurvetson • Undisclosed Firm • U.S. Venture Partners • Social+Capital Partnership • Meritech Capital Partners • New Enterprise Associates Inc • Hercules Technology Growth Capital Inc • Emergence Capital Partners • Andreessen Horowitz LLC • SAP Ventures • Bessemer Venture Partners • Scale Venture Partners • General Atlantic LLC • US Venture Partners • Draper Fisher Jurvetson International Inc • Mail.Ru Group Ltd • Telstra Corporation Ltd • ITOCHU Technology Ventures, Inc. • Telefonica • Coatue Management LLC • Macnica Inc. • Digital Sky Technologies Ltd • Mitsui USA • Mankwitz Kurtz Investments
VC Experts.com, Inc. Disclaimer: The information contained herein is from sources deemed reliable; it does not, however, purport to constitute investment advice nor does VC Experts represent that it contains all information concerning the identified Company deemed necessary or appropriate for investment decisions. VC Experts is neither a broker/dealer nor investment adviser and has no financial interest in the Company analyzed nor in the sale or purchase of any of its securities. The information and data are for reference purposes only and no implied or expressed warranties or assurances as to its accuracy or completeness are furnished by VC Experts. Estimates of valuation are, as indicated, estimates based on such information as we found available, the completeness of which is neither represented or guaranteed; users for any purpose are cautioned and required to undertake and perform their own investigations and due diligence. To the extent that the information incorporates content from specified sources of financial information, VC Experts disclaims any responsibility for the accuracy or completeness of such content.
About VC Experts.com, Inc.: VC Experts.com provides specialized content, valuation & term sheet data on thousands of venture capital financing events, and analytics for managing & modeling private company capital structures. Visit VCExperts.com for more information.
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