Venture Capitalists Flock To Cloud Computing Startup

Venture Capitalists Flock To Cloud Computing Startup

Venture Capitalists Flock

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

Sorry, comments are closed for this post.

Weighing in on Recurring Revenues to Tip Your Business’ Scale

Weighing in on Recurring Revenues to Tip Your Business’ Scale

Tip Your Business’ Scale CEOs, investors, analysts, and business advisors have fallen in love with the recurring revenue business model. In fact, when comparing like software companies, Wall Street gives 2x higher valuations for businesses with successful recurring revenue models in place. It’s no wonder that research indicates 50% of US businesses have already adopted…

DRaaS: Can Make Providers Life Easier

DRaaS: Can Make Providers Life Easier

DRaaS Planning Earlier in Part 1 this week we’ve touched on “What Is DRaaS?”. Now we will explore this a little further.  Disaster recovery situations are always high pressure, stressful affairs which require cool heads and excellent planning. What can service providers of DRaaS to do to make life easier for their customers and to…

Methodically Plan Your Cloud Design First

Methodically Plan Your Cloud Design First

Are You Sure You Are Ready For The Cloud: Design For the last few months, we have been discussing getting ready to go to the cloud. We have covered topics such as Financial and Business Security reasons. We have even discussed the type of knowledge you should obtain. This month, we are going to take…

The True Power And Potential Of Wearables

The True Power And Potential Of Wearables

The Power of Wearables The potential of wearable computing for efficiency and innovation is enormous. For business leaders and CIOs, wearable technology represents an opportunity to find more intelligent solutions to real problems and to leverage these devices for the benefit of the organization. But before wearables can successfully realize these expectations, there remain basic…

Cloud-Enabled Managed Hosting: 5 Things A Cloud Provider Should Offer

Cloud-Enabled Managed Hosting: 5 Things A Cloud Provider Should Offer

Cloud-Enabled Managed Hosting The IT industry moves at light speed fueled by constant change and advancement. No area of IT has been affected more by this change than the hosting and managed service space. Advancement in the cloud and its delivery models of IaaS and SaaS have caused a monumental shift in the way IT…

Cloud Pricing: What In The End Am I Actually Paying For?

Cloud Pricing: What In The End Am I Actually Paying For?

Cloud Pricing: What In The End Am I Actually Paying For? I’ve been blogging about this concept now for a while. What is the cost of a cloud solution and what in the end am I actually paying for? I know I am not the only person considering this as I’ve seen any number of articles…

Personal Space And The Internet of Things (IoT)

Personal Space And The Internet of Things (IoT)

The Internet of Things (IoT) There is a long time concept of the personal area network or PAN. For all intent and purposes this is the maximum distance a Bluetooth device can move away from the host and still be functional. As I read the many wonderful pieces on the explosion of IoT and wearable…

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the 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.

Advertising