Venture Capitalists Flock To Cloud Computing Startup

Venture Capitalists Flock To Cloud Computing Startup

Dell was born in a room at the University of Austin. Facebook originated from a Harvard dorm. Box.net, tracing its origin to a room in the University of Southern California, may or may not become as large as Dell and Facebook, but if recent indications are anything to go buy, people are willing to bet big money on it.

Box.net, a Silicon Valley startup that offers online file-storage and collaboration software, announced that it has obtained $48 million in fourth-round funding to finance its aggressive expansion plans. Meritech Capital Partners contributed $38 million in equity investment, with Emergence Capital Partners and Andreessen Horowitz, the fund operated by Internet pioneer Marc Andreessen, making up the balance. Hercules Technology Growth Capital Inc. has promised $10 million in debt financing. This increases the total amount raised t0 $77.5 million till date.

To put things into perspective, Meritech Capital had earlier invested in Facebook, NetSuite and Salesforce.com. Andreessen is on the boards of Facebook, eBay and HP among others. Therefore, it is clear that the investors have an established record of backing winners.

We’re going to be investing quite heavily in our infrastructure, in our R & D, and in our product, to build the next generation of the way that businesses are going to manage and share their data in the cloud,” said Aaron Levie, the 26-year old CEO of the company. He and his friend Dylan Smith founded the company in 2005 with $11,000 won in a poker game.

Since then, Box.com has grown by leaps and bounds among people desiring to store data online. While the basic version of Box’s service is free, it does charge customers $15 a month for extra features like more storage or security enhancements. As of end-2010, it has more than 5 million users at 60,000 companies, including 73% of the Fortune 500.

The company intends to use the cash to double its 140-person staff over the next 18 months, expand overseas and accelerate development of its mobile applications. It will also look to build up an enterprise sales force that will try and convert more free users into paying customers.

The CEO has big dreams and expectations for his company. “This is a revolution that is democratizing enterprise software – the cloud has dramatically leveled the playing field for the delivery of services, and for the first time, technology adoption in the enterprise is being driven by the bottom-up,” he wrote in a blog post. “….Box’s beginnings were modest..We must invest aggressively to continue this success. We are no longer a small startup, but a 140-person strong organization that must do everything in its power to bring better technology to the enterprise.”

By Sourya Biswas

sourya

Sourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a freelance journalist with several articles published online. After 6 years of work, he has decided to pursue further studies at the University of Notre Dame, where he has completed his MBA. He holds a Bachelors in Engineering from the Indian Institute of Information Technology. He is also a member of high-IQ organizations Mensa and Triple Nine Society and has been a prolific writer to CloudTweaks over the years... http://www.cloudtweaks.com/author/sourya/

Sorry, comments are closed for this post.

Cloud Infographic – The Future Of Big Data

Cloud Infographic – The Future Of Big Data

The Future Of Big Data Big Data is BIG business and will continue to be one of the more predominant areas of focus in the coming years from small startups to large scale corporations. We’ve already covered on CloudTweaks how Big Data can be utilized in a number of interesting ways from preventing world hunger to helping teams win…

Using Big Data To Make Cities Smarter

Using Big Data To Make Cities Smarter

Using Big Data To Make Cities Smarter The city of the future is impeccably documented. Sensors are used to measure air quality, traffic patterns, and crowd movement. Emerging neighborhoods are quickly recognized, public safety threats are found via social networks, and emergencies are dealt with quicklier. Crowdsourcing reduces commuting times, provides people with better transportation…

Cloud Computing and Social Networks

Cloud Computing and Social Networks

Pushing Innovation With Social Networks There was a time when storage space was a precious commodity. A few videos and photographs and the system would be gasping for breath in old PCs’ limited storage space. 10 Years ago, today’s top social networking sites would have broken down under the burden of the heavily visual traffic…

Cloud Infographic – Monetizing Internet Of Things

Cloud Infographic – Monetizing Internet Of Things

Cloud Infographic – Monetizing Internet Of Things There are many interesting ways in which companies are looking to connect devices to the cloud. From the vehicles to kitchen appliances the internet of things is already a $1.9 trillion dollar market based on research estimates from IDC. Included is a fascinating infographic provided by AriaSystems which shows us some…

Cloud Infographic – The Power Of Cloud Disaster Recovery

Cloud Infographic – The Power Of Cloud Disaster Recovery

The Power Of Cloud Disaster Recovery Preventing a Cloud Disaster is one thing. Recovering from a disaster is a whole other area of concern. Today’s infographic provided by CloudVelox outlines some best practices and safeguards in order to help your business make more informed decisions. About Latest Posts souryaSourya Biswas is a former risk analyst…

CONNECT TO THE CLOUD

 

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100


Contributor Spotlight

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021