The hottest salesforce is on Dropbox

2022-08-09
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Salesforce invested $100million before Dropbox went public.

Dropbox CEO drew Houston (left) and salesforce CEO Mark Benioff (right)

- according to a document submitted by Dropbox to the securities and Exchange Commission, salesforce ventures will buy shares worth $100million when it goes public

-salesforce previously invested $5million in the company. With the shares it will purchase this time, its Dropbox shares will still not reach 5% of the total shares of the latter

- but analysts believe that the price offered by salesforce ventures is unusually high, which may indicate that it may buy the company in the future

dropbox is about to make an IPO, and salesforce's investment in this technology start-up at this strange time may indicate that it will acquire the start-up next

Salesforce ventures, salesforce's internal venture capital department, announced on Monday that it would purchase $100million worth of Dropbox shares at the time of Dropbox's IPO through private placement

Salesforce called this transaction one of the largest strategic investments of the company so far, and this transaction caused an uproar in the scientific and financial circles

Raimo lesnchow, an analyst at Barclays, said: this transaction is too unusual

salesforce will purchase 5.9 million Dropbox shares at $17 per share in the private placement, which is the median of the offering price range given by Dropbox. Dropbox said in the latest document submitted to the securities and Exchange Commission that the IPO price of the company will be between $16 and $18 per share

according to the upper limit price of the offering price range and the issuance volume given by the company, the market value of the company after listing is about $7.5 billion, significantly lower than the valuation of $10billion when it last raised funds in the private market

Tom Roderick, general manager of stifel, a securities firm, said that the product synergy between salesforce and Dropbox is very meaningful, which may mean that salesforce regards dropb's linkable data transmission ox as a long-term acquisition target

Roderick said: if you want to know how salesforce views Dropbox, it is not difficult to think that Dropbox will be a very attractive acquisition object. Of course, I don't see any sign that this kind of acquisition transaction will happen in the short term, but since the issue price of Dropbox is lower than that of its last round of private equity financing, I guess salesforce will see the attractive valuation of this valuable partner

but don't expect salesforce to acquire Dropbox on the eve of its listing, just as Cisco acquired appdynamics on the eve of its IPO in January 2017. Roderick said that such an acquisition transaction could not happen before Dropbox went public

for SA Figure 4: aydale company uses its hdplas ion process to functionalize the graphite thin surface lesforce ventures, the price of $100million is unusually high

analysts said that the scale of this investment is unusual for salesforce ventures, and the company's total investment in the fiscal year 2018 ended January 31 was less than $100million

the company currently has five active investment funds, including a $100million fund dedicated to investing in startups developing applications on the salesforce platform, a $50million fund dedicated to investing in startups developing artificial intelligence technologies for salesforce, and a $100million fund dedicated to investing in cloud startups in Europe and Israel

however, the investment transactions of these funds are generally small-scale

stifel pointed out in a research report released on Monday that salesforce ventures has invested more than $10million in only 16 companies, with the highest investment of $90million

dropbox wrote in the document submitted to the securities and Exchange Commission on Monday that the transaction between salesforce and Dropbox will be completed when Dropbox is listed

Salesforce alluded to the deal in its annual report on Friday. Salesforce stressed that the company had invested $5million in Dropbox in 2015, and said that its total investment after the completion of this transaction was still less than 5% of the total shares of Dropbox

salesforce has been investing in companies that can cooperate well with its products

although the scale of this transaction has attracted the attention of analysts, it is not surprising that salesforce is interested in Dropbox

although it is now in the quiet period before the IPO, Dropbox announced last week that it has expanded its product integration with salesforce. Product integration is the core part of salesforce vent's experimental machine practice, which is a kind of mechanical equipment that obtains mechanical properties of data

salesforce ventures declined to comment on the details of its transaction with Dropbox, but it disclosed its interest in Enterprise Cloud investment in its annual report driven by the growth of the US and Brazil markets

Salesforce said in its annual report: for strategic reasons, we invest in early to late Enterprise Cloud companies and support key business plans to develop our partner ecosystem and accelerate the popularity of cloud computing

the company said: the main purpose of our investment is to create an enterprise cloud ecosystem, accelerate the growth of technology startups and system integrators, and build the next generation of mobile applications and connected products

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