Wednesday, October 12, 2011
Box.net raises $81M from Salesforce, SAP Ventures, others
Box.net has raised a total of $162 million.
Aaron Levie, who helped start Box.net in 2005, is its CEO. The company makes online file sharing software.
While I like Box.net, the amount of capital raised is staggering!!! And this is not capital-intensive business (at least it shouldn't be - after all they don't build factories or buy a ton on material).. I understand they want to attract the best minds, but still.. throwing money at it and hiring people just because is never a good thing.
My problem with this level of capitalization is that it pipes the companies full of steroids and should something go wrong in the market or with their execution, the company will crumble..