Why is the Dropbox network disk worth 8 billion dollars?

Netizen Small MO Card: Recent news Dropbox is carrying out a round of 250 million dollars of financing, if the financing is successful, the company's valuation will reach 8 billion U.S. dollars. In October 2011, it financed $250 million trillion, with a valuation of $4 billion. Is it reasonable to have a mere two-year valuation turned upside down?

In layman's parlance, Dropbox is a network disk, but it is not just a network disk. It is a cloud storage service provider that allows users to sync, share, and back up files across the terminal.

The main factors that support Dropbox overvaluation are as follows:

Product Level:

Dropbox almost covers Android, iOS and other platforms, file upload speed and service stability, can be used to work together. At the same time also launched a version control, incremental synchronization, external chain sharing features such as the user experience better.

User level:

The latest figures show that Dropbox has 200 million users and 4 million enterprise users. Its users are growing fast, doubling the past year. Even this year, the figure for July was 175 million, and three months increased by 25 million.

Business model level:

Dropbox's business model is clear and its revenue comes mainly from paid personal and corporate users. Dropbox offers different billing packages for paying subscribers: individual users pay $10 a month or $99 a year for 100GB of storage, and 20 dollars a month or $199 a year to get 200GB of storage space 50 dollars a month or 499 dollars a year to enjoy 500GB of cloud storage space.

At present, Dropbox does not disclose the proportion of paid users, so its revenue is not good to calculate. However, data show that 2012 Dropbox revenue reached 116 million U.S. dollars, the relevant sources, Dropbox in 2013 will be more than 200 million U.S. dollars in revenue.

Growth potential level:

In the enterprise market area, Dropbox has more imagination space. Elijah Foshman, head of Dropbox Enterprise Development, said the company had made the development of enterprise products one of the important tasks of the year. And the corporate market is a lucrative "cake".

At the same time, free users can be converted to paid users. As long as the user recognizes Dropbox service, when free space is used up, free users will have a certain proportion of conversion to pay users. This is different from domestic, domestic user habits free mode.

A large number of individual users will support the growth of enterprise users to some extent. In the trend of it consumption, many large enterprise employees are accustomed to working from home or mobile office. Employees ' habits of use will undoubtedly affect the company's decision-making.

Exit Mechanism:

Although facing the Amazon, Microsoft SkyDrive, Google Drive and other formidable rivals competition, but this may also give Dropbox a good exit mechanism, that is the giant acquisition. No matter which giants buy Dropbox, they will obviously increase their competitiveness.

Industry dividend:

The development of cloud computing will make it resources more efficient to use, which may mean that the cost of Dropbox access to storage resources will be reduced. At the same time, the user's cloud storage and sharing habits gradually developed, enterprises more and more accept the concept of cloud computing, these will be the development of Dropbox positive effect.

Valuations have an overvalued risk

However, Dropbox does not dominate the market. At present, similar service providers in the market, including box, Microsoft SkyDrive, Google Drive and so on, fierce competition.

Compared to other startups, AIRBNB valued $2.5 billion trillion, Evernote valuations of $1 billion, Pinterest valuations of $3.8 billion trillion, and Dropbox valuations of 8 billion dollars significantly higher. One of Dropbox's main rivals, box, recently financed only $100 million trillion in a 2 billion dollar valuation. Rising）

(Responsible editor: The good of the Legacy)