Box Raises More Money, Cloud Questions
July 8, 2014
Grazed from Channelnomics. Author: Editorial Staff.
Cloud storage and content management company Box is fast becoming a focal point of the cloud computing era. While other cloud ventures such as Salesforce.com and NetSuite have become productive service providers, Box plods along with high cash-burn rates and an indeterminate exit strategy.
Yesterday, Box announced it raised another $150 million in fresh venture funding, adding to its $80 million in cash reserves and bringing its total investment backing to $450 million. The company is now worth, by some estimates, $2.4 billion, even though its revenues are somewhere around $200 million…
What makes Box an interesting study is its expenses. Until recently, the company spent much more on marketing and communications than anything else in its operations. According to Forbes, Box spent $171 million on sales and marketing in 2013 – nearly a third more than its total revenue. The company says its business model, which relies on adding accounts and subscribers, requires heavy investments in sales, marketing and infrastructure…
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