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

In mid-2011, as global markets corrected amid world-wide economic uncertainty, Drew Houston, cofounder and CEO of Dropbox, the fast growing file synchronization and sharing company, found himself in a hard, albeit enviable, situation. With profitability and positive cash flows attained, additional funding was not necessarily wanted. Nonetheless, to be able to pursue future strategic attempts, Houston understood that additional cash was not dispensable.

As a way to accomplish this goal, the team delineated a number of tactical initiatives: expanding their popular consumer product to the business section; opening up a platform upon which to allow third-party developers to add services and programs in order to build scale; augmenting the consumer side through distribution partnerships; and eventually, finding a method to transition itself from a web-based business to one that may service cross-platform mobile apparatus. The team also understood that they might want a robust balance sheet to compete with well-recognized industry leaders like Google, Apple, Amazon, and Microsoft. They would also be required to concentrate on strategic hiring initiatives and key acquisitions as a way to carry out these aims. This case describes the path from beginning of Dropbox up to its Series B round of financing. Specifically, it centers on the team's strategic conclusions along with questions surrounding the execution of each and every initiative. Additional considerations include with whom to partner, and just how much funding to raise, at what valuation, which terms were most important.

PUBLICATION DATE: June 12, 2014 PRODUCT #: F309-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING