Slack

Slack Raises $200 Million, Boosting Valuation to $3.8 Billion

Slack Raises $200 Million, Boosting Valuation to $3.8 Billion
Image credit: Slack | Enhanced by Entrepreneur
2 min read
This story originally appeared on Reuters

Slack has raised $200 million in venture capital financing, boosting its valuation to $3.8 billion, the messaging software startup said on Friday.

The latest funding round comes in spite of a contraction in venture capital investing for technology startups, amid widespread concern about high valuations. The market rout among tech stocks earlier this year caused some venture capitalists to further tighten their purse strings.

Late-stage investments -- series D or later -- dropped 71 percent in February from a year earlier, according to venture capital database PitchBook.

Slack's $200 million round is its largest yet, the latest sign that some companies are still able to attract wary investors, many of which are flush with cash. In another instance, Snapchat, the ephemeral messaging app, raised $175 million last month.

Investors boosted the Slack's valuation by $1 billion, up from $2.8 billion a year ago.

The latest funding, which brings Slack's total venture financing to $540 million, was reported in recent weeks by multiple news outlets. Slack on Friday confirmed the round, which was led by Thrive Capital and included GGV Capital and Comcast Ventures, as well as existing investors.

San Francisco-based Slack makes messaging software for businesses, designed to help teams collaborate and communicate more effectively. The company says it has 2.7 million daily active users, although many of them access the free version of the software. About 800,000 are paid users.

 

Slack's customers include media companies such as CBS and BuzzFeed, tech companies such as Samsung Electronics Co Ltd. and Salesforce Inc., retailers, universities and the U.S. government.

(Reporting by Heather Somerville; Editing by Lisa Von Ahn)

More from Entrepreneur

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Slack, the Popular Messaging Platform, Is Experiencing an Outage