Most of the time you’re extremely proud when your company files for an IPO. Not Box and that’s a very very bad thing.
Online storage company Box has secretly filed for an IPO, according to Quartz and the Wall Street Journal. Box last year raised $100 million in venture funding and is valued at approximately $2 billion. An IPO could bring an additional $500 million to the company during a time when competition between rival Dropbox is intensifying.
Box is reportedly taking advantage of a provision in the JOBS Act, which allows companies with an annual revenue of less than $1 billion to file its IPO prospectus confidentially with the Securities and Exchange Commission. A Box spokesperson declined to comment on the possibility of an IPO.
“We don’t have anything to share at this time. We’re focused on continuing to build our business and expand our customer relationships globally,” a Box spokesman told Quartz in an emailed statement.
This just raises massive red flags, and sounds like the company is really quickly trying to shift into maximizing profit as fast as possible. Be prepared for performance drops.