Box secures $125M in funding for enterprise growth

Summary:Box plots global expansion to grow enterprise customer base after securing a huge new investment.

Box is on its way to plotting out a stronger global strategy thanks to a new $125 million investment announced on Tuesday morning.

At least $100 million of that fund derived from investments from General Atlantic. Also part of the deal, Gary Reiner, operating partner at GA and former CIO of General Electric, will join Box's board of directors.

Other investors include Bessemer Venture Partners, DFJ Growth, New Enterprise Associates, SAP Ventures and Scale Venture Partners.

The cloud storage provider has a few large goals with the extra funds, which are primarily focused on fueling the company's enterprise customer base worldwide. Box has already announced expanded operations in Europe with a new London office along with a third data center.

Box CEO Aaron Levie explained further in prepared remarks that "this new funding allows us to invest aggressively in the talent, technology and global expansion efforts required for Box to sit at the center of this shift and define the next generation of enterprise software."

The focus on the enterprise market is one of the key differentiators between Box and its competitors such as Dropbox, Google Drive, and Apple's iCloud, among others -- all of which tend to target the consumer crowd. But that enterprise branding is exactly what could be Box's saving grace as cloud software and solutions start to multiply and flood the market rapidly.

During the first half of 2012, Box says that its enterprise sales increased by 200 percent year-over-year, with the average deal size doubling during the same time frame. Box's customer base includes more than 120,000 businesses and individuals at 92 percent of the Fortune 500 list.

Brett Rochkind, co-head of General Atlantic's Internet & Technology unit, added that the enterprise software space is "a $300 billion market today," and he predicted that with the massive shift to the cloud these days, "Box is poised for phenomenal growth in the years ahead."

The investment is subject to regulatory approval and is expected to close in the next 30 days.

Topics: Cloud, Enterprise 2.0, Enterprise Software, Social Enterprise, Tech Industry

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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