Home » Technology » Slack is reportedly raising another huge $500M round of fund…

Slack is in the midst of raising another $500 million in financing at what could be a $5 billion valuation — money it will likely critically need as it goes after major corporate clients and construct a functional business — according to a report by Recode.

Slack also got some interest with a $9 billion price tag from Amazon, according to a report from Bloomberg last night. All this means that Slack’s valuation continues to rise amid the hype in Silicon Valley, but it could also benefit greatly from additional resources in the form of a larger organization or a fresh round of financing. Going after larger enterprise customers, which have locked in existing (if inferior) tools, while sticking to its design ethos will be an expensive process.

Slack is a darling in the Valley that has snapped up the hearts and minds of startups throughout the Bay Area and abroad. The company focuses on a dead-simple chat interface that’s designed to help large teams communicate around projects. That may even be emphasized in the seeming trickle of major updates that come out of the company, such as threaded messages in January this year. (Threads had been in development for more than a year.)

But being allergic to those major changes that larger companies might demand — which could end up feature-creeping the otherwise simple service to oblivion — can also potentially slow down its growth amid those markets, as it seemed in October last year. The company says it has 5 million daily active users and 1.5 million paying customers, which would still be an enviable number for many enterprise startups. Recode reports that the company currently has $1 billion in revenue but is not profitable yet.

Slack in May also released an update that helps users dig up who might have the right answer to a question, indicating that it’s looking for a way for users to find the fastest pathway to the information that they need. As teams get larger and larger — and rooms get more…

Source link