Dropbox: The Path to a $500M IPO

Dropbox

So, it’s finally happening. The tech behemoth that’s probably been on the industry’s collective radar to go public for ages has just filed a $500 million IPO.

That’s right. Dropbox is going public. It’s pretty evident that the signs were there earlier this year with a massive rebranding and then signing a gigantic lease in downtown San Francisco.

So let’s look at the issues that Dropbox will have to tackle post-IPO:

  • Converting trial users to paid users.
  • Overcoming a rebranding hurdle.
  • Plus adding the briar patch of pleasing shareholders for the first time.

One thing that is clear in the filing is that Dropbox has learned from Snapchat’s less-than-stellar IPO last year. Snapchat offered no voting rights to investors but Dropbox’s filing outlines a dual-class share setup that lets the current team retain voting rights while elegantly extending votes to the public. Class A shares (offered to the public) get one vote per share and Class B shares retain 10 votes. [insert clever girl gif from jurassic park]

Smart thinking and a very good iteration on the last unicorn’s IPO. Time will tell if this proves to be a good move for Dropbox Inc, but all the signs are there.

Written by
Blake is the Head of Product at Engine. Blake has worked for and with some of the largest ecommerce companies in Arkansas, growing teams and building digital products that have been used by millions. With a background in Computer Science and a passion for product and user experience, Blake leads the charge in building the next-generation ecommerce platform that is Engine.