Did you know that Slack started out as an online game made in Flash? 😳
How did they go from a Flash game to a $630M ARR SaaS?
Let's take a look 👇🧵
How did they go from a Flash game to a $630M ARR SaaS?
Let's take a look 👇🧵
"Never mind the part where we first tried to make a web-based massively multiplayer game and failed" - the Co-Founder of Slack says.
They spent almost 4 years working on that game.
Today, Slack is valuated to $5B.
Let's see what we can learn from Slack 👇
They spent almost 4 years working on that game.
Today, Slack is valuated to $5B.
Let's see what we can learn from Slack 👇
🔹 They took their own medicine
Slack became their own first users.
They had been using IRC while developing Glitch, the Flash-based game, and the team appreciated how this chat-based communication channel allowed them to work more focused and productive.
Slack became their own first users.
They had been using IRC while developing Glitch, the Flash-based game, and the team appreciated how this chat-based communication channel allowed them to work more focused and productive.
At the end of the Glitch journey, the team became less and less interested in the game, and more interested in team collaboration and communication.
They made a hard pivot and started focusing on developing a modern version of IRC instead.
They made a hard pivot and started focusing on developing a modern version of IRC instead.
🔹 They created their own market space
At the time, there were already a handful of services that supported group chats.
Skype, Campfire, HipChat, and a bunch of other IRC-based clients.
By no means was Slack the first service to enter this space.
At the time, there were already a handful of services that supported group chats.
Skype, Campfire, HipChat, and a bunch of other IRC-based clients.
By no means was Slack the first service to enter this space.
Yet, the interesting part is, when Slack did research and asked potential users: "What do you currently use for internal communication", most of them answered "nothing".
Clearly, teams were not using "nothing", but they never thought of this as a category of software in itself.
Clearly, teams were not using "nothing", but they never thought of this as a category of software in itself.
They were often using a combination of tools, often creatively put to use to serve the purpose.
Even though there were other solutions in the space, Slack incredibly managed to establish a new category of software - team communication - and place itself right in the center.
Even though there were other solutions in the space, Slack incredibly managed to establish a new category of software - team communication - and place itself right in the center.
Just like new companies will have to decide on a solution for CRM, Version Control, etc, Slack created this new category that now became another active decision for new teams to make.
Asking teams today "what do you use for team communication", most of them will have an answer.
Asking teams today "what do you use for team communication", most of them will have an answer.
🔹 Lean to the bone
After having used Slack internally for a while, the company onboarding 10 other companies to try out their new product.
They closely observed how these companies - of different sizes with different needs - used the service to communicate and collaborate.
After having used Slack internally for a while, the company onboarding 10 other companies to try out their new product.
They closely observed how these companies - of different sizes with different needs - used the service to communicate and collaborate.
For almost a year, they continued to progressively onboard more and more companies and teams in a closed alpha-stage.
They were extremely good at listening and responding to user feedback.
Not just for customer satisfaction, but just as much for product development.
They were extremely good at listening and responding to user feedback.
Not just for customer satisfaction, but just as much for product development.
They were quick to adapt to feedback, introducing new features, trying out new approaches, and after a year, they were ready to make an initial preview release.
TechCrunch and VentureBeat quickly picked up the news, and Slack got more than 15,000 new users within two weeks.
TechCrunch and VentureBeat quickly picked up the news, and Slack got more than 15,000 new users within two weeks.
From here, the rest is history.
Slack is one of the most fastest-growing and successful SaaS companies in the world.
It was acquired by Salesforce in a megadeal of $27.7B, which was the biggest acquisition Salesforce had ever done.
Slack is one of the most fastest-growing and successful SaaS companies in the world.
It was acquired by Salesforce in a megadeal of $27.7B, which was the biggest acquisition Salesforce had ever done.
Thank you for reading.
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