
Dropbox Amendment to Form S-1 - obi1kenobi
https://www.sec.gov/Archives/edgar/data/1467623/000119312518078140/d451946ds1a.htm
======
obi1kenobi
Other interesting excerpts:

\- "Salesforce Ventures LLC has entered into an agreement with us pursuant to
which it has agreed to purchase $100,000,000 of our Class A common stock in a
private placement at a price per share equal to the initial offering price."

\- "Following this offering, outstanding shares of Class B common stock will
represent approximately 98.0% of the voting power of our outstanding capital
stock."

Class B shares get 10 votes per share, so presumably reserved for the
founders. This seems to be a very high fraction.

~~~
subroutine
It is typically class A that gets 10 votes per share. Does the S-1 say
otherwise?

[edit] yep, you're right...

\- "Shares of our Class A common stock are entitled to one vote per share."

\- "Shares of our Class B common stock are entitled to ten votes per share."

From MarketWatch...

As is the norm for tech companies going public these days, Dropbox has
multiple classes of shares with different voting rights. Class A shares have 1
vote, Class B shares have 10 votes, and Class C shares are nonvoting.
MarketWatch pointed out last week that Dropbox's structure still gives heavy
voting power to the founders and key investors, but it's "slightly" better
than the one rolled out by Snap a year ago, in which ordinary investors don't
get any voting rights.

\- Cofounder and Chief Executive Drew Houston owns 38.3% of the class A shares
and 24.3% of the Class B shares, for 24.4% of the total voting power.

\- Venture-capital firm Sequoia Capital actually has more power than Houston,
with 25% of the Class B shares and 24.8% of total voting power.

\- Cofounder Arash Ferdowski has 9.9% total voting power, mainly consisting of
Class B shares.

~~~
subroutine
Condoleezza Rice

[https://i.imgur.com/Ix9rYDR.png](https://i.imgur.com/Ix9rYDR.png)

Didn't realize Condi was on the Dropbox board of directors.

~~~
sireat
Her joining Dropbox was discussed 4 years ago:
[https://news.ycombinator.com/item?id=7565546](https://news.ycombinator.com/item?id=7565546)

That was a very realpolitik like hire.

------
notimetorelax
Risk factors look interesting:
[https://www.sec.gov/Archives/edgar/data/1467623/000119312518...](https://www.sec.gov/Archives/edgar/data/1467623/000119312518078140/d451946ds1a.htm#toc451946_2)

> As of December 31, 2017, we served over _500 million_ registered users but
> only 11 million paying users.

> We have incurred net losses on an annual basis since our inception. We
> incurred net losses of $325.9 million, $210.2 million, and $111.7 million in
> 2015, 2016, and 2017, respectively, and _we had an accumulated deficit of
> $1,049.7 million_ as of December 31, 2017.

> However, our rates of revenue growth are slowing and may continue to slow in
> the future.

I thought they were better off. Or is it usual for startups when they go into
IPO?

------
beefman
Market cap is expected to come in around 7.5B, which is 25% below the last
private round. Is somebody getting a haircut here?

[https://news.crunchbase.com/news/dropbox-sets-reasonable-
ipo...](https://news.crunchbase.com/news/dropbox-sets-reasonable-ipo-price-
range/)

------
chirau
Any idea when they are going to ring the bell? I want to get in very very
early on this one. Very early.

~~~
chirau
Jesus Christ! What is wrong with people here on HN? Why am I being downvoted
for asking when a stock is going to start trading? Wow

~~~
xapata
Perhaps because it's not an interesting comment.

~~~
paulie_a
Attempting to find out when a stock starts trading in a thread about an IPO
isn't interesting?

It's 1999 again

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m3kw9
..is implied it will go up to 1 billion by EOD IPO.

