Venture Capital Markets Enterprise

Question for Slack: When Will Investors Cash In on Gains?

By
Alfred Lee
 |  June 20, 2019 6:00 AM PDT

The biggest venture capital shareholders in messaging firm Slack stand to make billions of dollars when the company goes public on Thursday. One of the big questions surrounding the listing is how fast the VCs, who as a group own a majority of the stock, will want to lock in those gains by selling their shares.

Unlike a conventional initial public offering, Slack is hitting the public markets through a direct listing, in which no money is raised and investors don’t have to wait months for the end of a traditional lockup period on their shares. That could add to selling pressure in the first few weeks. The market’s other recent, high-profile company to go public through a direct listing, Spotify, did so with a more diverse set of investors who might be more likely to hold shares for a long period on the public markets.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
The Briefing
Palantir and Asana: Two Very Different Debuts: The Information’s Tech Briefing

Palantir and Asana went public Wednesday, immediately doubling the number of high-profile tech companies that have joined the public market through direct listings of their shares, rather than via a traditional IPO. But that might be the only thing that the two companies had in common on their first day on the public market.

Asana shares opened above $28, around the highest level that they had ...

Latest Briefs
 
Microsoft, Datadog Ink Strategic Partnership for Cloud Apps
Cloud Backup Firm Datto Files for IPO
Google Unveils New Pixel Phones, Chromecast with Netflix Button
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Exclusive Uber/Lyft Autonomous Vehicles
Infighting, ‘Busywork,’ Missed Warnings: How Uber Wasted $2.5 Billion on Self-Driving Cars
After five years and an investment of around $2.5 billion, Uber’s effort to build a self-driving car has produced this: a car that can’t drive more than half a mile without encountering a problem.
Markets
SPAC Managers to Watch
SPAC mania may be nearing its peak. Everyone from Peter Thiel to Paul Ryan is backing special purpose acquisition companies, firms that are taken public as empty shells, destined to raise money for the purchase of a business at some point in the future.
Exclusive Entertainment
ViacomCBS Probed Sexual Misconduct Allegation Against CEO Bob Bakish
ViacomCBS has been investigating an allegation of sexual misconduct by its CEO, Bob Bakish, according to several people familiar with the situation.
Exclusive Enterprise Cloud
Microsoft’s Changes to Business Software Terms Could Lift Its Cloud Service and Hurt AWS, Google
A change Microsoft made late last year to the terms of service for Microsoft 365, its cloud-based software that includes Word, PowerPoint and Outlook, could drive some companies that use Amazon Web Services and Google Cloud to Microsoft’s Azure cloud service, analysts said.
Startups to Watch Venture Capital Startups
Six Startups Filling the Growing Need for Online Education
Startups in educational technology, a growing sector often overlooked in the past, are now finding themselves near the front of the class.
Exclusive Venture Capital Startups
Austin Emerges as a Hot Spot for Silicon Valley Investors
Austin’s startup scene is getting a jolt of new capital, this time from a wave of investors transplanted from Silicon Valley.