Slack, the provider of workplace communication and collaboration tools, has submitted paperwork with the Securities and Exchange Commission to go public later this year, the company announced on Monday.
This is its first concrete step toward becoming a publicly-listed company, five years after it launched.
Headquartered in San Francisco, Slack has raised more than $1 billion in venture capital investment, including a $427 million funding round in August. The round valued the business at $7.1 billion, cementing its position as one of the most valuable privately-held businesses in the U.S.
The company counted 10 million daily active users around the world and 85,000 paying users as of January 2019.
Slack’s investors include SoftBank’s Vision Fund, Dragoneer Investment Group, General Atlantic, T. Rowe Price Associates, Wellington Management, Baillie Gifford, Social Capital and IVP, as well as early investors Accel and Andreessen Horowitz.
Slack is one of several tech unicorns on deck to go public this year. Uber and Lyft have both similarly filed confidentially to go public in what are expected to be traditional initial public offerings. Slack, however, is expected to pursue a direct listing, following in Spotify’s footsteps. Instead of issuing new shares, Slack will sell existing shares held by insiders, employees and investors directly to the market, a move that will allow it to bypass a roadshow and some of Wall Street’s exorbitant IPO fees.