Who knew that Dropbox, who got their first investment check from Y Combinator on June 26, 2007 would go public this soon. Well, here they are.
Cloud storage company, Dropbox, upon its initial public offering surged by as much as 44% during its trading debut on Friday. This marks a very strong start to what we can call the most significant public offering this year (for now).
The company, before going live, had priced its IPO at $21 a share on Thursday. This price was above the expected range placed on it. However, the stock opened in the market at $29 per share, after which it rose above $30 in a very short time. Hence, the company’s valuation is placed at an impressive $11.9 billion.
Dropbox’s rise is particularly interesting as before the investment from Y Combinator, the company after pitching in Boston, just didn’t impress investors enough to write a check. This is according to Jessica, a co-founder at Y Combinator who said in a blog post that, “So Boston investors had an entire week before any Silicon Valley investors saw Dropbox, and not one of them made a move. I think the party line was that “the space was too crowded.”
According to the regulatory filing Dropbox submitted for its IPO, the company has more than 11 million paying users. It witnessed a 32% increase in revenue from 2016, while earning $1.106 billion last year.