Dropbox is competing with Microsoft and Google as well as fellow startup Box in the fast-growing field of cloud storage. It wants the cash to improve its sales and engineering teams and acquire technology. If it scores the cash it needs the six-year-old company will be worth more than $8 billion.
Currently there is a tendency for Silicon Valley startups to be valued at astronomic values. Twitter is valued a $20 billion and yet to make a profit and Pinterest won a round of financing that valued the nascent website at $3.8 billion. Dropbox declined to comment on the funding rumours. The company was founded in 2007 by Massachusetts Institute of Technology graduates Drew Houston and Arash Ferdowsi.