Sources: Valuation trimmed to $4 bn

Sources say Index is set to lead the round, and say previous indications of as much as $8 billion-$10 billion may have been deliberately high to allow bidders a look at the company’s financials. A firm indication earlier of $5 billion is also now over the mark. One explanation is the general financial market conditions and U.S. government debt problems spooking VCs, while Dropbox is also thought to want access to certain investors and is lowering valuations to draw them in.