![]() The money-losing startup had a stock market valuation of about $19.5 billion in its first moments as a public company. Shares of the buzzy workplace software company Slack Technologies started trading publicly for the first time Thursday and their price immediately surged nearly 50% to $38.50. companies with more than 10,000 employees reportedly use Slack. While Slack is growing, it has yet to turn a profit, losing $138 million last year on revenue of $400 million.The jump in share prices gave the San Francisco-based startup a market valuation of about $19.5 billion.The price of shares in the workplace software company Slack Technologies surged nearly 50% to close at $38.62 after the company's debut Thursday on the New York Stock Exchange under the ticker symbol "WORK.".Slack's price was ultimately determined by the designated market maker, based off a calculation of a figure where buy orders could be met with sell orders. When Spotify debuted in a similar fashion last year, its reference price was $132, but the stock opened at $165.90 the following day before closing at $149.01. The NYSE gave a reference price for Slack on Wednesday night of $26 a share. Andreessen Horowitz owns 13% (worth $2.6 billion at the open) and Social Capital controls 10% ($2 billion).īutterfield is the biggest individual shareholder, with an 8.4% stake ($1.6 billion), followed by co-founder and Chief Technology Officer Cal Henderson at 3.3% ($639 million). Unlike those high-profile IPOs, Slack chose to go public through a direct listing, meaning the company didn't raise fresh capital but is letting existing shareholders convert their shares into stock that can be traded.Īccel isn't the only Silicon Valley firm poised to get rich off Slack. Those are huge hauls, particularly for a firm that has traditionally raised sub-billion-dollar funds, and they account for two of the biggest venture returns of 2019, a year that's included the debuts of Uber and Lyft. ![]() In 2013, Accel led CrowdStrike's $30 million Series B financing round. Slack's direct listing comes just over a week after the IPO of security software company CrowdStrike, which counts Accel as its second-biggest shareholder, owning stock worth $2.6 billion. I told Stewart, 'If you want to continue to be an entrepreneur and build something, then I'm with you.'" "And the reason we invested in Tiny Speck was because we were investing in that team. "But the company we'd invested in was Tiny Speck, which produced the game," Braccia told TechCrunch. He said he talked to Slack co-founder Stewart Butterfield at the time of the pivot about whether the company should return the money now that the gaming idea was clearly a flop. The commonalities between those companies start and end with the drive, creativity and resilience of their founders and early team members."īraccia, who's a Slack board member, made similar comments in a 2015 interview with TechCrunch. "Slack is a great reminder that the most interesting companies are often the ones whose courses aren't easily charted. "As investors it is easy to get lost in the complexities of product market fit or connecting a young company to an established category," Accel's Andrew Braccia wrote in a blog post Thursday. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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