Dropbox - Series B Financing Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Dropbox - Series B Financing Case Solution

This case explains Dropbox's course from beginning approximately its Series B round of financing. Particularly, it concentrates on the group's tactical choices along with concerns surrounding the execution of each effort. Extra factors to consider consist of just how much financing to raise, at exactly what appraisal, which terms were crucial, and with whom to partner.

Knowing Goal

Supply trainees with a chance to examine an endeavor financing for it to comprehend how business owners and financiers make and need to make crucial financial investment choices.

In mid-2011, as worldwide markets fixed amidst around the world financial unpredictability, Drew Houston, co-founder and CEO of Dropbox, the fast-growing file synchronization and sharing business, discovered himself in a tough, albeit excellent, circumstance. Houston, who had actually currently raised over $7 million through 2 rounds of endeavor financing (one seed round and a Series A round) and established a big and growing user base, started getting substantial financier interest. With favorable capital and success attained, extra financing was not always required. Nevertheless, so as to pursue future tactical efforts, Houston understood that extra money was vital. Nevertheless, Houston and his group had actually currently effectively carried out the freemium service design however they had a higher vision-- one that consisted of a "course" to one billion users.

For you to attain this objective, the group marked a variety of tactical efforts: extending their popular customer item to the business section; opening a platform upon that to permit third-party designers to include services and applications if you want to construct scale; enhancing the customer side through circulation collaborations; and lastly, discovering a method to shift itself from a web-based business to one that might service cross-platform mobile phones. The group likewise understood that they would require a robust report to take on reputable market leaders such as Google, Apple, Amazon, and Microsoft. They would likewise have to concentrate on tactical employing efforts and crucial acquisitions in order to perform these objectives.

This is just an excerpt. This case is about Business