Dropbox Founder Drew Houston Joins Billionaire Ranks As Company Reaches $10 Billion Valuation

Jan 17 2014, 6:18pm CST | by

Dropbox Founder Drew Houston Joins Billionaire Ranks As Company Reaches $10 Billion Valuation

In late 2011, a young and brash Drew Houston was doing battle with Steve Jobs. Two years shy of 30, the Dropbox cofounder and CEO had brushed aside the advances of the Apple guru only to him face him head-to-head when Jobs launched iCloud, a service meant to crush his cloud-based file-sharing company.

Houston’s reaction at the time: “Oh sh-t.”

Less than three years later, Houston, now 31, looks to have come off a lot stronger from the war. On Friday afternoon, various reports announced that that Dropbox had closed a $250 round of funding at a $10 billion valuation. That makes the Dropbox chief Silicon Valley’s newest Silicon billionaire.

FORBES estimates that Houston has at least a 10% stake in the San Francisco-based company. In an Oct. 2011 cover story on Houston and Dropbox, FORBES reported that Dropbox’s CEO had an estimated 15% stake worth $600 million after the company closed a round at a $4 billion valuation. At least two sources confirmed that Houston was a billionaire following Friday’s fundraising round, led by a BlackRock investment fund. At the $10 billion valuation, Houston’s stake in the company he cofounded with Arash Ferdowsi, could be worth anywhere from $1 billion to $1.5 billion, depending on how much he still owns.

A spokesperson for Dropbox did not respond to an email request for comment.

Dropbox’s last round of investment came in 2011 when it raised $250 million, with investors that included Goldman Sachs, Accel Partners and Sequoia Capital.

BlackRock’s investment affirms Dropbox as one of Silicon Valley’s most valuable private companies, among the likes of Jack Dorsey’s Square and Palo Alto-based data-mining firm Palantir. The deal also helps Houston join an elite group of founders like Mark Zuckerberg, Jack Dorsey and, most recently, Aneel Bhusri, all of whom have ridden their their tech startups into the realm of 10-figure fortunes.

In reflecting back on his path to founding his company, Houston told FORBES in 2011: “I wanted to live the dream and felt stuck eating Hot Pockets.”

Now a billionaire, Houston can afford a lot more than just Hot Pockets.

Forbes 400 2013: Richest In Tech

With reporting from Alex Konrad in New York

Follow me on Twitter at @RMac18.

Source: Forbes Apple

 
 
 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Apple Watch Sport Receives 5 out of 10 Points from iFixit
Apple Watch Sport Receives 5 out of 10 Points from iFixit
The iFixit engineers award the new Apple Watch with only 5 out of 10 points
 
 
Robert Downey, Jr. speaks out about the Apple Watch
Robert Downey, Jr. speaks out about the Apple Watch
Actor says that he has mixed reviews about the smartwatch
 
 
Apple files patents for two news liquid metals for products
Apple files patents for two news liquid metals for products
Material would be used on Apple Watch, iPhone, and iPad
 
 
Apple Watch Shows an Impressive Performance in the Waterproof Test
Apple Watch Shows an Impressive Performance in the Waterproof Test
Apple Watch passes a recent waterproofing test successfully without having any scratch