Slack is now valued at $7.1 billion

Slack, the workplace chat app, has raised $427 million in a financing round that gives it a valuation more than 40 per cent higher than its last fundraising under a year ago. The San Francisco-based start-up is now valued at $7.1 billion, including the new capital, after raising more funds on the buoyant private market for technology companies rather than seeking an initial public offering. In total, Slack has raised almost $1.3 billion to fuel its quest to become a backbone for businesses, replacing email with the social media-like app that integrates workplace software ranging from cloud storage to collaborative spreadsheets. US private tech groups have raised $19 billion in fresh capital so far this year, more than the total for last year… The latest round was led by Dragoneer Investment Group, a San Francisco-based investor, and growth equity firm General Atlantic… Last year, SoftBank led a $250 million round as part of the Japanese technology conglomerate’s Vision Fund. Slack has 8 million daily active users, many of whom use the basic product free, and 70,000 paying teams at customers including IBM, eBay and BuzzFeed… the company said that last year it had hit annual recurring revenue of $200 million…

 

Hannah Kuchler

 

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