Dropbox raises $250 million in new funding

Reuters News
Posted: Oct 18, 2011 12:54 PM

(Reuters) - Dropbox, the company behind the virtual file cabinet that allows users to access documents, photos and videos from different devices, said it had raised $250 million in funding.

Index Ventures led the series B round from participants that also included Benchmark Capital, Goldman Sachs, Greylock Partners, Institutional Venture Partners, RIT Capital Partners, and Valiant Capital Partners.

Dropbox plans to tap the money for expansion --through acquisitions and partnerships -- as well as for new hires.

The San Francisco-based company said it had 45 million users who access 1 billion files every three days. It provides a certain amount of storage for free before charging people for extra capacity.

Dropbox, which has not disclosed its revenue, competes with other services like Google Inc's free Docs.

So far, Dropbox raised $257.2 million that includes early investors Sequoia Capital, Accel Partners, and Hadi and Ali Partovi.

(Reporting by Jennifer Saba; Editing by Lisa Von Ahn)