Salesforce-Slack Deal: Sapphire's Jai Das on Potential Success

It’s a common misconception that discussions surrounding enterprise software must be dull. Our recent discussion with Sapphire’s Jai Das proved otherwise, offering valuable insights into various areas such as emerging startup industries, the scope of his investment firm’s funding, and naturally, the acquisition of Slack by Salesforce.

We spoke with Das shortly before the official announcement of the deal, though market anticipation had already widely predicted the outcome, allowing us to discuss it as if it were finalized. This prediction soon became reality.

This interview with Das was conducted as part of our Extra Crunch Live series; further details can be found here. Those interested in joining can begin their membership here. Previous guests on Extra Crunch Live have included Byron Deeter from Bessemer and Roelof Botha from Sequoia, among others.

The entire conversation with Das was both engaging and informative, but his explanation regarding the rationale behind Slack’s sale to the prominent CRM company particularly resonated. Drawing a parallel to Salesforce’s purchase of MuleSoft – a company in which Das had invested – he outlined the advantages and disadvantages of being acquired by a larger organization.

Das acknowledged that MuleSoft potentially could have achieved a higher revenue multiple had it remained independent in the current market conditions, but he then explained the benefits a substantial company can provide to one that is already successful (the following quote has been edited for brevity):

Consequently, Slack may experience increased momentum and growth under Salesforce’s ownership compared to operating independently. The majority of our conversation centered on startups and smaller businesses, so please see the full video and additional transcribed quotes below.

Enjoy!