Slack value rockets as stocks closes up 48.5% in public debut

Slack Hoarding in New York Stock Exchange
Credits: TechCrunch

Slack is popular is an American collaborative software created by Slack Technologies. In the initial stages, Slack was used to for Butterfield’s company Tiny Speck for the development of Glitch (Game). Recently, the value of Slack Stocks increased when the stock closed up at 48% at $38.62 per share.

However, Slack is the short form of Searchable Log of All Conversation and Knowledge. It was first founded in 2009 and released in August 2013. The features of the Slack includes direct messaging, private groups, and persistent chat rooms organized by topic.

Increase of Slack Stocks value

Recently, the value of Slack Stocks increased when the stock closed up at 48% at $38.62 per share. Moreover, the Slack stocks were raised as high as $42 within one day of trading. Now, the market cap of Slack has climbed above $20 billion or probably three times more in its new private estimation of $7 billion.

On Thursday, Slack became the 2nd largest venture in the capital-backed business. Also the chief executive officer and co-founder of the Slack, Stewart Butterfield has now become a Billionaire. He held 8.6% of stake which is worth $1.6 billion at the opening price in the market.

Apart from that, Accel is the biggest shareholder that has a stake of $4.6 billion. Other shareholders include Andreessen Horowitz ($2.6 billion), Social Capital ($2 billion), Slack co-founder Cal Henderson ($646 million), and SoftBank ($1.4 billion).

Did Slack get any benefit from investing in SaaS?

The opening of Slack was quite grand, but not surprising. We all know that direct listing in the public market can be a risky road. However, in the case of Slack, it got benefited from both sides. It gained profit from SaaS and its globally renowned brand.

Apart from that, the music streaming business Spotify has also performed well since 2018. It opened trading up 25% from its cost of $132 before closing down 10%.

Check out The Geek Herald for more exciting updates.

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