Office communication startup Slack is reportedly raising $250 million in a new funding round, becoming the latest US startup to look for a sizeable investment to expand.
According to people familiar with the matter, SoftBank Group and venture capital firm Accel are keen to plunge more money into the business, which makes messaging and collaboration software for offices.
The latest funding round raises Slack’s valuation to just above $5 billion, higher than its previous figure of $3.8 billion.
Other previous investors are also said to be participating, with Slack having raised money from venture firms GGV Capital, Spark Capital and Thrive Capital in the past. However, Slack spokeswoman Julia Blystone declined to comment on “funding rumours.”
Slack’s sizeable funding round reflects the trend of a growing number of $100 million investments into technology startups. The interest SoftBank represents the latest in a series of investments from the Japanese bank into the US tech industry, having approached Uber about taking a multi-billion dollar stake in the ride-sharing company earlier this week.
In the second quarter this year, there were 34 venture capital deals of $100 million or more, nearly triple the 12 such transactions in the first quarter, according to data firm PitchBook Inc.