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I'm new to venture deals (just read the book of the same name) and I have a question: Slack seems to be in peacetime: aggressive growth, buying things like Hip

• gkanai 8y ago
  > why would they need to raise money? The thinking is that the more a hot company can raise, the longer they can stay public. In the current cycle, IPOs are more rare than in previous cycles (partly because FAANG are acquiring more companies and partly because companies are waiting longer to IPO) so having more cash on hand gives the company that much more runway.
  • acconrad 8y ago
    Did you mean private? So even if they are a market leader, give them more cash? I get why Uber does it because they have serious commoditized competition with Lyft, but Slack does not seem to have even a close 2nd place.
• paxy 8y ago
  > In previous rounds, Slack’s CEO and co-founder Stewart Butterfield has said that the company raises “opportunistically.” That is, it doesn’t have to raise money because it’s already making money and still has some in the bank, but as long as VCs are knocking, it’s worth taking the funding if it’s coming in at good valuations because you never know what might lie ahead.