Workplace collaboration app Slack is reportedly planning to raise another round of funding at more than $400 million and a post-money valuation of at least $7 billion, according to TechCrunch’s sources. Slack has surpassed 8 million daily active users and at least 3 million of them are paying.
With a valuation of $7 billion, it would be $2 billion higher than the last valuation was revealed back in September 2017. Around that time, SoftBank led a $250 million round of funding in Slack at a $5.1 billion valuation.
It is rumored that new investor General Atlantic will be leading this round of funding. And Dragoneer may also be participating in this round. Prior to this rumored round of funding, Slack raised about $800 million in total funding.
Back in May, Slack also revealed a Slack Fund — which is an investment arm that provides funding and resources to companies that are building apps for the workplace collaboration platform.
Slack also has 70,000 paid teams including brands like 21st Century Fox, Capital One, eBay, IBM and more. In fact, Slack has 65% of Fortune 100 companies signed up as customers.
Slack’s biggest rivals are Microsoft Teams and Facebook Workplace. Microsoft reportedly has more than 200,000 paying customers. And Facebook has a number of sizable customers like Walmart. By raising another round of funding, Slack could potentially ramp up its sales teams in order to gain some additional wins though.
Slack was founded by Stewart Butterfield back in August 2013. Butterfield is also known as being one of the co-founders of Flickr, which was acquired by Yahoo in 2005.