Enterprise cloud storage company Box is attempting to raise another $100 million in venture investment in the form of Series E-1 Preferred stock, according to a recent regulatory filing.
The SEC filing dated October 14, 2013, was revealed by research firm VC Experts. VC Experts business intelligence director Justin Byers told Business Insider that a new round of funding could value Box just less than $2 billion and it might very well be the “last big push” before a possible 2014 IPO. Prior to this filing, $309 million had already been invested in Box since its inception on a college campus in 2005.
Meanwhile, cloud storage competitor Dropbox could be trying to raise $250 million and that it’s aiming for a $8 billion valuation leading up to a possible IPO according to reports.
Box and Dropbox will also be competing with a number of new entrants into the cloud storage arena that didn’t exist last year. Launched in January, BitTorrent, Inc.’s BitTorrent Sync now has more than 1 million people using its system of synchronizing files across trusted devices via P2P technology. Also launched in January, file sharing service Mega, headed by controversial founder Kim Dotcom, has amassed 5 million users.
These pure-play cloud vendors are also competing against document management and collaboration suites like Microsoft’s SharePoint and even Salesforce.com, according to the recent Cloud File Sharing and Collaboration Market Analysis report from The Real Story Group.
These are all potential risks for those putting up venture capital, and they may be weighing on investors of publicly traded stocks if these IPOs do end up materializing in 2014.