Slack Raises $160 Million at $2.8 Billion Valuation

Slack Raises $160 Million at $2.8 Billion Valuation

Slack, the red hot Vancouver-based business communications company, raised a new $160 million round. The investment features a number of heavyweights, such as Horizons Ventures, Digital Sky Technologies (DST Global), Index Ventures, Spark Capital, and Institutional Venture Partners (IVP) with the participation of past Slack investors including Accel Partners, Andreessen Horowitz, The Social+Capital Partnership, Google Ventures, and Kleiner Perkins Caufield & Byers.

Speculation had the company being valued at 2.6 billion, with rumours that co-founder Stewart Butterfield would step down from his CEO role. This latest round brings the company’s total investment to $340 million.

Slack now has 750,000 daily active users, with 200,000 of those actually paying.Since celebrating its first birthday less than a month ago the company has added over 250,000 new users.

Butterfield is the entrepreneur who previously founded Flickr, which he sold to Yahoo in 2005 for a reported $35 million. Slack was launched by Butterfield’s Tiny Speck, a computer game startup he founded in 2009. Most of the leadership at Tiny Speck came from Ludicorp which was responsible for the creation of Flickr.

“We take a very long view of both the opportunity before us and the company we want to build. We’re still at the beginning of a major transition in how people communicate and work together,” Butterfield said in a statement.

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