Box Turns to TPG, Coatue for $150M Pre-IPO Financing
July 09, 2014
Cloud storage company Box has raised $150 million in funding from TPG Growth and Coatue Management; TPG Growth will appoint a director to the company's Board. Box filed for an initial public offering this past March, planning to raise at least $150 million, but later delayed the offering due to unfavorable market conditions. The new capital will tide the company over until it finally hits the NYSE, a move that is rather likely to occur soon considering the details of its latest deal. Box has promised TPG and Coatue a guaranteed return, known as a "ratchet," in order to secure the latest investment; if the company goes public within the next 12 months, the two firms will make a return of at least 11% on the $20 per share they ponied up; if the IPO occurs after 12 months, that return goes up to 15%.