Home / World News / Slack receives $10.6 million in incentives to locate HQ2 in Denver – The Denver Post

Slack receives $10.6 million in incentives to locate HQ2 in Denver – The Denver Post

Amazon is keeping Denver and 19 other cities in a holding pattern regarding its decision on a second headquarters. But Slack Technologies, the rapidly growing workplace messaging platform based in San Francisco, is giving serious consideration to the metro area for a second home.

The Colorado Economic Development Commission on Thursday approved the up-and-coming tech firm for up to $10.6 million in state job growth incentive tax credits if it brings up to 550 net new full-time jobs to the state.

The jobs include positions in research and development, customer service, administration and sales and marketing. The average annual wage of those jobs will be $107,975, which is 63 percent higher than the average annual wage in Denver County.

“We feel Colorado’s offer puts us in a good competitive position,” said Dan Lane, global business manager with the Colorado Office of Economic Development and International Trade.

Phoenix; Austin, Texas; and Portland, Ore., are the other cities that Slack is studying for its HQ2. But Colorado was the first to put an offer on the table, Lane said.

“We have a first-mover advantage,” Lane said, adding that Slack is looking to make a decision on its new location by early summer.

Slack was founded in 2009 in Vancouver, British Columbia, as Tiny Speck, which produced a computer game called “Glitch.’ The company relocated to San Francisco and shifted its focus to developing a communication platform called Slack that allows workers to interact more efficiently than via email.

The company has raised $841 million in private equity, including a $250 million round last fall led by Softbank’s Vision Fund. That round lifted the company’s estimated value to $5.1 billion.

State tax credits won’t benefit Slack directly unless it starts to turn a profit, which isn’t the case yet.  But Colorado did change its rules to allow companies to sell their tax credits to others who have a tax obligation.

Since September, Slack’s number of daily active users has shot up 33 percent to 8 million, and its count of its paid users is now at 3 million, up 50 percent. It is also believed to be considering an initial public offering in the near future, according to Business Insider.

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