Slack climbs ‘unicorn’ ranks with new funding and $3.8 billion valuation

The popular communication collaboration platform Slack has raised another $200 million in venture capital financing — and along with it, a valuation close to $4 billion.

This marks Slack’s biggest round of financing yet, and it comes during a time of tightened purse strings in the realm of venture capital investing for startups, according to Reuters. The $200 million round, which was confirmed by Slack, brings the company’s total venture funding to $540 million.

The latest funding also brings Slack’s valuation to around $3.8 billion, which is about $1 billion, more than its $2.8 billion valuation last year. This makes the startup one of the fastest-growing “unicorns” out there.

“As has always been the case, we are taking this opportunity to further secure our leadership position as we continue to execute on our ambitious growth plans,” said Slack co-founder and CEO Stewart Butterfield in a statement. “This capital adds to our existing reserves and increases our ability to focus on an uncompromising long-term, strategic view.”

Slack, founded in 2013, boasts 2.7 million daily active users, and about 800,000 of them are paid users.

Microsoft recently contemplated submitting a bid for Slack as large as $8 billion, which would have been nearly double the startup’s latest valuation. Co-founder, technology adviser, and board member Bill Gates and CEO Satya Nadella were among those who were not in favor with pursuing the acquisition.