As per the latest valuation, Slack has been valued at a little over $5 billion.

Sources familiar with the matter have disclosed, San Francisco-based Slack Technologies Inc is raising $250 million in a new funding round which will boost its valuation.

Silicon Valley startups are enjoying a surge in venture capital investments.

Slack Technologies, which develops messaging and collaboration software for businesses, is raising fresh capital at a valuation of a little more than $5 billion, a hike from its earlier $3.8 billion valuation, said sources familiar with the matter at hand.

The funding round is being led by the SoftBank Group Corp and venture capital firm Accel, said sources on the condition of anonymity.

SoftBank is heavily investing in startups, and recently it has launched a $93 billion Vision Fund for technology investments.

In the past Slack has raised money from venture firms, including Spark Capital, GGV Capital, Thrive Capital, among others.

Julia Blystone, Slack’s spokeswoman declined to comment on “funding rumors.”

Bloomberg and Axios, a news website have also reported on the funding round.