Dropbox: The Path to a $500M IPO

Posted on February 26, 2018

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.