Slack – the messaging startup to invest $80 million in other startups
Bengaluru, India | Red Newswire |Dec 16, 2015 Last Updated at 05:00 PM IST.
The budding Silicon valley startup Slack Technologies till date has raised $300 million and guess what? It is now thinking of investing in other startups! The corporate messaging startup is setting aside $80 million fund for investments.
The CEO of Slack, Steward Butterfield, said that his company will be contributing more than half of its total fund. Its investors will also put in some money in this venture. the company is thinking of investing $100,000 -$250,000 in early startups that will help build applications compatible with Slack Messenger.
The company is presently valued at $2.8 billion and we don’t usually see such young companies turning into corporate investors.
The main product of the company allows businesses to create chat rooms and share files was launched just two years ago. Butterfield discussed that how easy it has been for it to raise so much capital and so it now wants to spend on other startups.
Usually large companies drive such corporate ventures among which major players are Google, Salesforce.com, Intel and Qualcomm. Corporate venture stood for 11% of the total venture investments last year according to National venture Capital Association.
Often the aim of the corporate ventures is to find potential acquisitions, however Slack is looking towards a different approach. "We can't preclude the possibility that we would ever acquire someone we invest in, but that's not the point. Hopefully, we actually make some money on our investments”, said Butterfield.
Instead the purpose of investing in other startups is to show how other businesses can be built upon Slack. Butterfield said, “It could be something that would replace a wiki, or allow you to check on your 401(k) status in the form of a bot, or something that we haven't imagined at all." he said.
Slack itself is backed by Accel partners, Index Ventures, Andreessen Horowitz and Kleiner Perkins Caufield & Buyers.
Three investments have already been made by Slack which includes “Awesome” – a company that makes tools for organizing Slack Activity, "Howdy"– chat bots developer and "Small Wins" – productivity software maker startup.