Enterprise cloud storage player Box netted a huge $125 million Series E funding round led by growth equity firm General Atlantic Partners. The cash influx brings the total funding for 7-year old Box to $287 million.
The Los Altos, Calif.-based company will use the money to fund international expansion. “We’re going to scale out the team all round — the top net new priority is international expansion which we already started with the opening of a London office,” Box co-founder and CFO Dylan Smith said in an interview on Monday.
Smith also said the company is girding for an IPO but is in no hurry, reiterating that the company, with about 500 employees, should be in a position to go public sometime next year. “We’re focused on growth and market share and, depending on what the market looks like, that will be the ultimate driver,” he said.
While General Atlantic ponied up the lion’s share — $100 million — for this round, another new investor Social + Capital Partnership also participated, as did existing backers Bessemer Venture Partners, Draper Fisher Jurvetson Growth, New Enterprise Associates and SAP Ventures.
Box continues to polish up its enterprise credentials by naming Gary Reiner, a General Atlantic operating partner (and former CIO of General Electric) to its board of directors.
This is a lot of cash, but Smith said Box’s momentum — it claims 200 percent sales growth year over year — meant it could do this deal on “attractive terms to minimize dilution.” The company claims 11 million active users but does not disclose how many are paying (as opposed to freemium) users.
Box is attacking a huge opportunity — providing an IT-approved and secure way for business users to store files from their PCs, phones or tablets — and the explosion of Bring Your Own Device (BYOD) deployments is fueling that demand. But it hardly has that market to itself. There are dozens of other companies vying to become “the Dropbox of the Enterprise.”