I was reading this morning about Slack‘s rumoured $ 160M round, coming hot on the heels of last Fall’s $ 120M round. If this round closes then in the space of 7 months the company will have raised $ 280M and grown it’s valuation over 10x from the previous funding rounds.
This is a beautiful illustration of the importance of momentum in building a valuable company. Most startups take some time to find their stride. But once they find product/ market fit and scalable customer acquisition channels, the market-leading startups seemingly never stop raising capital. Instead, they raise more money, quicker to keep piling on to the growth they already have. This is why in most markets, the bulk of the market value goes to the leader. There’s just such a huge gap between that company and the ‘also rans’.