Dropbox has become one of America’s best financed start-ups by securing $500 million in borrowing. The credit facility was led by JP Morgan Chase & Co. and brings the total amount Dropbox has raised to $1.1 billion.
Square is also reportedly pursuing a credit facility and will look to raise about $200 million, though all details have not been finalized, according to The Financial Times. Goldman Sachs led the Square round, along with Morgan Stanley and JP Morgan Chase, among others.
“Securing access to low-cost capital always makes financial sense, even for a well-capitalised company like Square,” a company spokesperson said in a released statement.
Analysts speculate that the large cash infusions available to well-capitalized start-ups like Dropbox and Square allows such companies to delay or avoid IPOs.
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