Box is a private start up that has generated billion dollar valuations from private venture capitalist firms. If Box takes advantage of the recent stock market surge in the US, would the company be valued higher or perhaps lower than what private investors say?
The answer to this question isn’t clear cut. For example, Twitter is not currently a profitable company however the organization has been valued at several billion dollars. Box does have products that are profitable however many public investing experts aren’t so sure that Box is worthy of a multibillion dollar evaluation.
Since Box has had fewer than 1 billion dollars in total annual revenue, the company is allowed to keep much of the IPO process on the hush. This isn’t anything out of the ordinary because it is a privilege granted to companies wanting to go through the IPO process. This does raise some red flags. If private investors have valued Box at several billions and public investors are valuing the company at fewer than 1 billion, it leaves you to wonder what the real value of the company actually is.
Box has successfully been funded in upwards of $400 million using private venture capital. This type of money has positioned Box to compete with many of your other large tech companies who currently compete for Box’s market share. Box is a company that helps organizations securely share documents. This service may sound like something that doesn’t need $400M in funding to do, but Box has researched all of the nuances and provides organizations with a solution that is tested, trusted and versatile.
Box has taken Silicon Valley by storm. The company was just a small start up venture just a couple years ago and now Box is looking to become a publicly traded company on the stock exchange. It is currently unclear what ticker symbol Box will be represented by.