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Andreessen Horowitz, Meritech and Emergence Pick Box as Cloud Content Management Winner With $48M Investment(February 24, 2011)
PALO ALTO, CA -- (Marketwire) -- 02/24/11 -- Box.net today announced that it has raised $48 million in additional capital to transform how organizations ranging from SMBs to large enterprises share and manage business information in the cloud. Meritech Capital Partners led the Series D round, with new investment firms Andreessen Horowitz and Emergence Capital Partners joining previous investors Draper Fisher Jurvetson, Scale Venture Partners and US Venture Partners to fuel the next stage of Box's growth in the enterprise.
Box finished 2010 with over 5 million users and 3.4X business revenue growth, driven by adoption of its cloud content management platform by enterprise customers like DreamWorks, Cisco and Dell. 60,000 companies, including 73% of the Fortune 500, use Box to share, access and collaborate on business content online, as well as from iPads, iPhones and Android devices. The company began the year by unveiling an all-new version of its service, bringing enhanced collaboration and real-time capabilities to users, along with a dramatically simplified user interface.
"With this new capital and our current momentum, Box is positioned to redefine an industry, much as Salesforce.com has done for CRM and NetSuite for ERP," said Aaron Levie, co-founder and CEO, Box. "We want to bring Box's cloud content management to businesses of all sizes, all over the world; we'll aggressively outperform legacy software solutions on cost, flexibility, user experience, and speed of innovation, while pushing on our freemium business model to make it incredibly easy for individuals and companies alike to adopt Box."
Over the past year, Box has brought on senior talent from enterprise and technology leaders Salesforce.com, Google, Oracle, EMC, and Intuit, and with this new capital, the company will continue to hire aggressively to double its team of 140 employees over the next 12-18 months. Box will also invest substantially in expanding its mobile platform and partner ecosystem; the company has seen 400,000 app downloads for iOS and Android, and features more than 150 integrated partner applications such as Salesforce, Google Apps and NetSuite in the Box Apps Marketplace. Given increasing demand for Box's cloud content management worldwide -- businesses outside the US account for 15% of Box's customer base -- Box will significantly increase international capabilities in 2011. The financing includes $38 million in equity from the new and existing investors, along with a $10M commitment from Hercules TGC.
"Cloud adoption in the enterprise is inevitable as IT leaders look to support their organizations with new solutions that address today's problems and anticipate tomorrow's," said Ben Horowitz, general partner at Andreessen Horowitz. "Box has proven that it has the vision and the execution track record to be a leader in the new wave of enterprise solutions, and this infusion of capital will position the company for an explosive year."
"Box has already inspired millions of individuals and tens of thousands of businesses to rethink the way they share and manage content," said George Bischof, managing director at Meritech Capital. "With this round of funding, Box is positioned to be the clear leader in cloud content management by continuing to challenge the enterprise software status quo with rapid, disruptive innovation and unparalleled user experience."
"Content management and collaboration are core needs of every single business in the world, and unlike legacy solutions, Box can scale to meet the demands of organizations ranging from SMBs to Fortune 500s," said Jason Green, partner at Emergence Capital. "The global market potential for Box is massive, and by continuing to push its viral freemium model and investing aggressively in the platform, Box will be a leader in the cloud content management market."
Founded in 2005, Box provides cloud content management for more than 5 million users and companies ranging from small businesses to the Fortune 500. Box's dynamic, flexible content management and collaboration solution empowers users to access and share content online, and gives IT professionals unprecedented visibility into how content moves within their organizations and beyond. Content on Box can be shared internally and externally, accessed through iPad, iPhone and Android applications, and extended to partner applications such as Google Apps, NetSuite and Salesforce. Headquartered in Palo Alto, CA, Box is a privately held company and is backed by venture capital firms Andreessen Horowitz, Meritech Capital Partners, Emergence Capital Partners, Draper Fisher Jurvetson, Scale Venture Partners, and U.S. Venture Partners.
About Andreessen Horowitz
Andreessen Horowitz is a venture capital firm that invests in high technology companies and is based on a vision for a new, modern venture capital firm that supports entrepreneurs through angel investments to large scale funding. Its general partners are Marc Andreessen, Ben Horowitz and John O'Farrell, all widely recognized experts in the creation, scaling, and operation of high growth technology companies such as Netscape, Opsware, Silver Spring Networks, and [email protected] Andreessen Horowitz has more than 30 investments with companies like Facebook, Foursquare, Groupon, Kno, Rockmelt, Skype, Twitter, and Zynga. The firm was established in June 2009 and is located in Menlo Park, CA.
About Meritech Capital Partners
Meritech Capital Partners is a premier late-stage venture capital firm that invests in category defining private technology companies. With over $2.6 billion under management, Meritech seeks to lead investments in companies with proven and differentiated technology, strong market presence, accelerating revenue and seasoned management teams. As one of the most active late-stage investors, Meritech provides informed guidance on a number of issues that the most promising private companies face as they continue to rapidly scale. Representative portfolio companies include Facebook, Fortinet, Greenplum, Netezza, NetSuite, Riverbed, Salesforce.com, SpringSource and TeleAtlas, among others. Meritech is located in Palo Alto, CA (www.meritechcapital.com).
About Emergence Capital Partners
Emergence Capital Partners, based in San Mateo, Calif., is the leading venture capital firm focused on early and growth-stage Technology-Enabled Services companies. Its mission is to help build market leaders in partnership with great entrepreneurs. Emergence partners have funded and helped build more than 50 TES companies, more than any other early-stage venture firm. Emergence Capital has assets of over $325 million under management. Prior investments include companies such as salesforce.com (CRM), SuccessFactors (SFSF), HireRight (HIRE), Yammer, Veeva and InsideView. For more information, visit www.emcap.com.
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