Cloud Computing Startups Raise Big Money: UPDATE 2
This is the third in a continuing series on startups raising funding. You can read the first two in the series here:
Today, there are two startups in focus – Dropbox and EnStratus
Dropbox is a cloud computing startup that has garnered a lot of attention ever since it was founded in 2007 by
MIT graduates Drew Houston and Arash Ferdowsi. In fact, at one point of time, Steve Jobs had also expressed
interest in acquiring the company. However, the founders had decided to go it alone and now, their self-
confidence has paid off.
The company, which until a month ago had raised only $7.2 million in funding, recently closed Series B
financing of $257.2 million which valued it at $4 billion. The round was led by Index Ventures, with new
investors Benchmark Capital, Goldman Sachs, Greylock Partners, Institutional Venture Partners, RIT Capital
Partners, and Valiant Capital Partners participating along with previous investors Sequoia Capital, Accel
Partners, and Hadi and Ali Partovi.
“Our goal has always been to build a service that hundreds of millions of people would love and trust. We’re
inspired by the consumers and businesses that depend on Dropbox, and we will continue to make sure that the
world’s devices, services, and apps work together seamlessly,” said co-founder Houston, the company’s CEO,
in a press release announcing the funding.
Forbes has named Dropbox “tech’s hottest startup” while TechCrunch estimated a possible valuation of
$5 billion earlier this year. It had also featured on the Annual Crunchie awards list, hosted by TechCrunch,
GigaOm, and VentureBeat (See: Crunchie Awards Finalists – Best New Cloud Start Ups). Competitors include big
players like Microsoft, Google and Apple as well as smaller entities like Box.net (See: Can Box.net Overtake
enStratus – (http://enstratus.com)
Cloud infrastructure management solutions provider EnStratus announced $3.5 million in Series A funding
from El Dorado Ventures (leading) and Vesbridge Partners. The company intends to use the money to expand
operations, including hiring new people to add to its existing workforce of 25 and going overseas beyond its
two offices in the US.
“enStratus continues to grow quickly with customers deploying private and public clouds with enterprise-level
cloud management requirements,” said CEO David Bagley. “This financing will help us build on our success
and accelerate our business plan.”
By Sourya Biswas