Emergence Capital Partners

Cloud storage startup Box.net scores $48 million in funding

February 24, 2011: 12:19 PM ET

Andreessen Horowitz and others send a big signal that web-based enterprise software startups are gaining clout with their latest investment.

Back in 2005, Aaron Levie and Dylan Smith were college dropouts with a collective $11,000 and a not-so-sexy startup idea for an online storage and collaboration service. Today, the entrepreneurial duo announced that their company, Box.net, has closed a whopping $48 million series D funding round.

The large investment is the latest sign that web-based enterprise software startups are gaining clout. Box, a file storage and collaboration company, says it has over five million users, including enterprise customers like Cisco Systems (CSCO), Dell (DELL) and DreamWorks Animation SKG (DWA). The basic version of Box's service, which lets people store and share files online, is available for free. The company charges customers $15 a month for extra features like more storage or security enhancements.

Palo Alto, Calif.-based Box has raised a total $77.5 million to date. Its latest round was led by venture capital firm Meritech Capital Partners with Andreessen Horowitz and Emergence Capital Partners joining in. More

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