Slack raised another big round of new financing that has valued the business at over $5 billion. The leader of the new round of financing was Japan-based SoftBank, which is appears has been investing in numerous companies of late.
It seems as if another large investment from its fund of $100 billion that is investing large sums of money in large deals currently in Silicon Valley. Its latest investment with the workplace tool is for $250 million.
However, its means as well that Slack is continuing to garner attention for its app that is quickly trying to end the thought that it is a darling of Silicon Valley, while not far beyond it.
Slack, originally considered a simplistic collaboration tool, now is looking to be more of the go to with big businesses as it is facing intense competition with products from Atlassian and Microsoft.
In July rumors began first surfaced about a financing round when a report said the company had been looking for $500 million if financing.
The report suggested as well that the company received interest from e-commerce giant Amazon at the price tag of $9 billion.
Slack has incrementally updated its product over the last year, and that has apparently paid dividends. While it is a hit of Silicon Valley, the company continues to look to expand beyond just that small niche and to become the go to collaboration tool for the workplace.
Slack in early September said it has over 6 million active daily users. It announced that is crossed the annual revenue threshold of $200 million. While it may not be taking off like a rocket like it once did, Slack seems to still have strong momentum.
During 2016, Slack appeared to receive a great deal of interest as a possible acquisition target of Microsoft said to be considering acquiring it, which sources said would have carried a valuation of $8 billion.
Instead, software giant Microsoft made the decision to stick with Skype, and in early September updated its product that will allow guests form other groups to join on shared channels, something Slack debuted shortly thereafter.
Instead, Slack raised another new large round of funding from namely Thrive Capital that valued it at just over $3.8 billion.
Therefore, it cannot be too surprising that another round of funding raising has been received since it is not unprecedented.
Slack with its revenue is attracting over 25x its next-year revenue, which has some goodwill and growth built in.