Dropbox, the web-based file-sharing service, is reportedly looking to raise $250 million of funding in coming weeks, which would result in a valuation of at least $8 billion for the tech start-up.
That valuation would be more than double the one investors placed on the company the last time it raised money in 2011, according to TechNewsWorld.
“What we can say is that with over 200 million users and 4 million businesses, Dropbox has continued a strong momentum,” a company spokesperson said in the report.
However, some investors and portfolio managers are skeptical of the potential $8 billion valuation for Dropbox as competition in the online-storage space heats up. From the TechNewsWorld report:
Indeed, Dropbox has major, well-funded competition from Microsoft and Google via their Skydrive and Google Drive services, noted Charles Lewis Sizemore, a portfolio manager on Covestor and chief investment officer for Sizemore Capital Management.
“Given that Microsoft rules PCs and Google rules mobile, it’s hard for me to see Dropbox being the ultimate winner,” Sizemore told the E-Commerce Times. “I’m not saying the company will outright fail, but I would question their growth prospects given that Microsoft already integrates Skydrive into Windows 8.1 and Google has integrated its Drive into various parts of its ecosystem.”
Read the full report here.
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