Slack CEO Defends $2.8 Billion Valuation - Digits - WSJ

Slack unconstrained

"The question the CEO said he asked himself was, “Does it make sense for this company where we are right now to take $160 million from people who are buying about 5.5% of the company?”

One potential downside of startups raising funds at lofty valuations is that it can hamper their ability to recruit workers, who may decide to join a company based on the potential for its equity to rise in value. But Butterfield said a higher valuation can also attract engineers and others who believe they are getting a piece of a substantial, growing company, Butterfield said."

Slack CEO Defends $2.8 Billion Valuation - Digits - WSJ