Drew Houston, Chief Executive Officer and founder of Dropbox, stands in front of the company's logo at an announcement event in San Francisco, California, U.S., January 30, 2017. REUTERS/Beck Diefenbach - RC12885F1140

Dropbox pulled off a red-hot tech-unicorn IPO

$12 billion

After pricing its IPO at $21 per share, Dropbox’s first day trading on the Nasdaq saw the company’s shares rise by nearly 50%.

Published   |  Photo by Beck Diefenbach / Reuters
Drew Houston, Chief Executive Officer and founder of Dropbox, stands in front of the company's logo at an announcement event in San Francisco, California, U.S., January 30, 2017. REUTERS/Beck Diefenbach - RC12885F1140
$12 billion

It’s a good start for the San Francisco-based cloud-storage company (DBX), which took an extremely long road to get to Wall Street.

Drew Houston, Chief Executive Officer and founder of Dropbox, stands in front of the company's logo at an announcement event in San Francisco, California, U.S., January 30, 2017. REUTERS/Beck Diefenbach - RC12885F1140
$12 billion

It’s also the biggest tech-unicorn IPO since Snap’s hot start in March 2017—though Snap has struggled since. After one day of trading, Dropbox’s market valuation reached a one-day peak of $12.67 billion.

Drew Houston, Chief Executive Officer and founder of Dropbox, stands in front of the company's logo at an announcement event in San Francisco, California, U.S., January 30, 2017. REUTERS/Beck Diefenbach - RC12885F1140
$12 billion

However, Dropbox is trying to keep expectations reasonable. The company even warned investors itself that it may never turn a profit in the heavily competitive file-storage market.

Drew Houston, Chief Executive Officer and founder of Dropbox, stands in front of the company's logo at an announcement event in San Francisco, California, U.S., January 30, 2017. REUTERS/Beck Diefenbach - RC12885F1140
$12 billion

Dropbox may be a market leader for storage solutions, but it’s playing in the same space as titans like Google and Microsoft.

Drew Houston, Chief Executive Officer and founder of Dropbox, stands in front of the company's logo at an announcement event in San Francisco, California, U.S., January 30, 2017. REUTERS/Beck Diefenbach - RC12885F1140
$12 billion

For now, things look good for investors—especially Sequoia Capital, which invested $1.2 million in Dropbox more than 10 years ago. Now the VC firm holds a stake that’s worth over $2 billion.