Slack: Messaging startup raises valuation as it seeks £190m of new funding

The San Francisco based startup slams reports that it is aiming to take advantage of a favourable investment climate

Slack offers a messaging and collaboration software used by companies worldwide. April Underwood, vice president of product, is seen here at a conference in Silicon Valley (REUTERS)

Software startup Slack Technologies is raising $250m (£190m) in a new funding round, according to people familiar with the matter, boosting the company's valuation as Silicon Valley companies enjoy a surge in venture capital investments.

Slack, which makes messaging and collaboration software for businesses, is raising the fresh funding at a valuation of slightly more than $5bn, a step up from its previous $3.8bn valuation.

The investment is being led by SoftBank and venture capital firm Accel, a previous investor, who declined to be identified. SoftBank has been heavily investing in startups, and it recently launched a $93bn Vision Fund for technology investments.

Other previous investors are participating. Slack has in the past raised money from venture firms GGV Capital, Spark Capital and Thrive Capital, among others.

Slack spokeswoman Julia Blystone declined to comment on "funding rumours." Slack is headquartered in San Francisco.

Slack's sizeable funding round reflects the trend of a growing number of $100m-plus checks pouring into technology startups. In the second quarter this year, there were 34 venture capital deals of $100m or more, nearly triple the 12 such transactions in the first quarter, according to data firm PitchBook Inc.

These large rounds have helped drive an uptick in startup funding since the end of last year, with venture capitalists investing $15.7bn in companies during the second quarter this year, a 27 per cent increase from the first quarter and making for the strongest quarter in a year, according to Thomson Reuters.

Reuters