Box CEO Aaron Levie
Box CEO Aaron Levie

Box, the online storage company started by a pair of Mercer Island High School graduates, is seeking additional funding from private equity firm TPG to tide the company over before its initial public offering, according to a report by the Wall Street Journal.

The company filed for its IPO on March 24, right after the market for tech stocks began to soften. An additional funding boost would give the rapidly growing cloud storage service some additional breathing room to choose when it wants to set its IPO date.

Other tech companies have since had successful IPOs, but uncertainty remains about how much Wall Street is interested in cloud storage firms like Box. The company reported a $168.6 million loss for its 2013 fiscal year, on revenues of $142.2 million, so it’s possible that Box could start feeling a squeeze if it keeps going without an infusion of funding.

The company lost $112 million for its 2012 fiscal year.

According to the report, Box’s management has cut its marketing budget in order to make sure that its cash hoard lasts for as long as possible.

Still, the company has a number of high-profile enterprise contracts, including General Electric. If those companies stick around for the long haul, they’ll provide a strong revenue foundation for Box to build on.

Here’s Box’s SEC filing.

Update: A Box spokesperson provided GeekWire with the following statement via email: “Our plan continues to be to go public when it makes the most sense for Box and the market. As always, investing in our customers, technology, and future growth remains our top priority.”

Comments

  • Jacob King

    Unfortunately I have already long given up on Box. A couple years back, I made the switch from their service because it simply lacked the necessary tools to operate a business on the cloud effectively (fortunately I found drivehq for that). Then all the news about their filing came out, and all those losses (and how the losses are growing) and how little Levie actually owns. Then all the news came out about how Google, Apple, Microsoft, Amazon, etc. all the cloud giants just cut their prices to nearly nothing. Even with another good round of funding, I’m just not sure I can be confident enough to want to acquire stock in a company like this.

  • Mike

    probably not a good idea to IPO then

  • Bill

    Good luck to Box. Their product was the early leader in enterprise class file sharing and sync products. Far and away the best from a security and enterprise management perspective. But increasingly a commodity product used as a throw in give away by Google, Microsoft and others. And not as easy to use as DropBox in a home environment. The GE deal is a huge endorsement though so hopefully one they can build on successfully.

    IPO valuation seems like a tough one though if you see a business like Zendesk. TPG is a logical capital source as one of the main funds providing high valuation, very late stage capital to AirBnB, Uber and others.

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