While many tech companies are facing declining valuations and cautious investors, Slack is bucking the trend and going big.
The workplace messaging app is reportedly seeking $150-$300 million in funds from investors at a valuation of $3.5-$4 billion, up from its most recent valuation of $2.8 billion, reports Bloomberg, citing anonymous sources close to the matter.
News of the valuation comes as Slack announces plans to add video and voice chat features to its platform, which could turn the platform into a competitor of Google Hangouts and Skype.
Slack declined to confirm fundraising numbers in an email to Inc.
"Slack is doing well. There has always been a great deal of investor interest in the company, and we expect that to continue. However, we have nothing to announce and nothing else to add at this point," wrote Slack spokeswoman Julia Blystone.
Meanwhile other startups are not doing so well, and saw a 30 percent drop in venture capital investment in the fourth quarter Bloomberg reported, citing data from CB Insights. Many mature startups raising funding also saw their valuations docked, according to a study by law firm Fenwick & West LLP Bloomberg cited.
CB Insights analyst Matt Wong told Inc. his firm did not have specific thoughts on Slack, explaining that the round when closed could be bigger than expected, smaller or not materialize at all.
"We've seen a lot of companies (regardless of macro environment) reportedly seeking investments at large rounds," he said.
Last time Slack raised money, less than a year ago, Butterfield was memorably candid about his reasons for doing so. While the firm wasn't in urgent need of cash, it would have been "almost imprudent" not to take advantage of the incredibly generous terms on offer in the then-smoking hot venture market. "It might be the best time for any kind of business in any industry to raise money for all of history, like since the time of the ancient Egyptians," he said.