Slack, the internal chat tool that in just eight months has risen to become the toast of media companies and Silicon Valley alike, just raised a boatload of money, skyrocketing the enterprise startup to a $1 billion+ valuation.
The New York Times reports that the company has raised a new $120 million round of financing, which includes participation from heavy hitters like Google Ventures, Andreesen Horowitz, and Kleiner Perkins Byers and Caufield. Slack was created by Stewart Butterfield, who developed the chat tool in the periphery of another gaming startup, an MMORPG called Glitch. With employees in Canada and the U.S., Slack was refined from the internal chat software that his startup used to communicate.
Indeed, the service has been hoisted up as everything from “an email killer” to a slick amalgamation of Yammer and Campfire, but with really good internal search. Companies like Blue Bottle Coffee even pitch Slack as a perk, as if it were a discounted gym membership or a free-lunch Friday. Slack’s corporate clients include everyone from Apple to Twitter to Fast Company.
The startup recently ran into a hitch, however, when a security vulnerability made it possible for outsiders to snoop on the Slack room names of the clients. (In a statement, Slack went on to call the vulnerability a “feature” that was “designed to
make it easy for our users to find and access teams.”)
Still, investors and users are plenty high on it. “It’s one of these rare things, an Internet treasure, we believe,” one investor told the Times. Even though Glitch never seemed to take off as an RPG, perhaps Butterfield will be comforted to know that Slack is a great place to BLARP, as some Fast Company employees can attest.
[h/t: New York Times]