SEC Confidential Filings
For companies with less than $1 Billion in annual revenue, confidential IPOs afford firms to receive feedback from the SEC and subsets of investors prior to a global analysis. Not only is the information kept private from the public (most importantly the media and competitors), the company need only submit 2 years of financial statements to the SEC rather than the standard 3 years of information.
Slack’s Confidential Filing
On Monday, February 4th, Slack announced that it has confidentially filed a draft of a proposed IPO with the SEC. Slack, a direct messaging and communication software for businesses, has been growing rapidly since its launch in 2013. So far, Slack has raised over $1.2B (its latest round of $427M in August 2018) and has over 10 million daily active users. The communications platform is reportedly valued at $7B after its latest round.
Slack’s IPO is deemed the start of a wave of the Tech Giant’s IPOs in 2019, including Uber, Lyft, and Airbnb.