Dropbox raises $250m funding for expansion

DROPBOX, the company behind the virtual file cabinet that allows users to access documents, photos and videos from different devices, said it had raised $250m (£159m) in funding.

Index Ventures led the series B round from participants that also included Benchmark Capital, Goldman Sachs, Greylock Partners, Institutional Venture Partners, RIT Capital Partners, and Valiant Capital Partners.

Dropbox plans to tap the money for expansion – through acquisitions and partnerships – as well as for new hires. The San Francisco-based company said it had 45m users who access 1bn files every three days. It provides a certain amount of storage for free before charging people for extra capacity.

It is run on the so-called fremium model, offering two gigabytes of storage for free, while 50 gigabytes costs $9.99 a month and 100 gigabytes costs $19.99 a month.

Dropbox, which has not disclosed its revenue, competes with other services like Google Inc’s free Docs.

So far, Dropbox has raised $257.2m that includes early investors Sequoia Capital, Accel Partners, and Hadi and Ali Partovi.