Enterprise cloud storage vendor gets a new boost in funding
Box raises $125 million in funding and can use the cash for international expansion
7/31/2012 10:42:00 AM By: Juan Carlos Perez
Box has received US$125 million in funding, an infusion the corporate will use to reinforce its international expansion and strengthen its cloud-hosted enterprise collaboration, storage, file-sharing and content management software.
The investment round was led by General Atlantic (GA), a late-stage private equity firm that shelled out $100 million and may gain a seat on Box’s board of directors.
Occupying that seat should be Gary Reiner, a GA operating partner and previous General Electric CIO and senior vice chairman.
“He’s a serious addition to our board of directors,” said Box CEO Aaron Levie . “He brings depth of expertise in enterprise software and inside the challenges that businesses of GE’s scale face of their IT strategies.”
With this money injection, plans for an IPO aren’t at the agenda. “The good thing about a funding round of this size is that it puts us in a capital position where we do not have to head public within the near future,” Levie said.
Box has to date raised $287 million in funding. Within the first 1/2 this year, sales to enterprises grew 200 percent, compared with a similar period in 2011, in step with the corporate.
Box, that is based in Los Altos, California, will use the cash during this latest funding round partly for its international expansion, which it formally launched last month when it opened an office in London.
In addition to building sales and professional services teams to serve Europe, Box also is localizing its site and plans to soon deploy IT infrastructure improvements to raise the performance of its application outside of the U.S.
Box’s application is utilized by about 120,000 businesses worldwide, including 92 percent of the Fortune 500. Clients include Procter & Gamble, Random House, Dell, ESPN and McAfee.
Last week, Box announced an application to access its software from Windows Phone 7.5 devices, in addition to a partnership with Qualcomm wherein the chip maker will recommend to its device manufacturer clients that they pre-load the Box application of their Android tablets and smartphones.