San Francisco, Calif. — Dropbox, a cloud-based file hosting service that enables its users to access their documents from any computer, is reportedly raising $200-$300 million in a new round of funding, TechCrunch wrote. This would value the company at $5-$10 billion, a figure that took many by surprise.
Previously valued at $7 million, if this funding round proceeds, Dropbox’s valuation would be level to Twitter’s. Expansion into European and Asian markets build upon the platform’s infrastructure and brand.
The company currently has a funding total of $7.1 million from Accel Partners, Sequoia Capital, Y Combinator and others.
Founded in 2007 by Drew Houston and Arash Ferdowsi and launching in 2008, the company hosts a total of 25 million registered users.
Early on, the company faced legal challenges regarding its brand name. One of these, Office Corporation (FilesAnywhere.com) v. Dropbox Inc., is currently on trial in Texas. Dropbox experienced more difficulties in June, when a security breach made it possible to access any account using any password, not necessarily the one associated with that account.