Rippling’s tender offer decision draws mixed — and strong — reactions | TechCrunch

Rippling’s tender offer decision draws mixed — and strong — reactions | TechCrunch

I'm welcome TechCrunch Fintech! This week, we're looking at Rippling's controversial decision to ban some former employees from selling their stock, Carta's massive price cut, GenZ-focused fintech growth, and more!

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Big story

Investor demand for shares of hot HR/fintech startups has been so strong. to wave The company told TechCrunch venture desk editor Julie Burt that it is also allowing former employees to participate in its massive tender offer sale — worth more than $2 billion in term sheets, it says. But there is one big exception: it has Ban on ex-employees who operate by selling their stock to a handful of competitors. This news shocked people a bit. An uproar over Xwith some strongly supporting – and some strongly condemning – the move

Analysis of the week

Cartaa once high-flying Silicon Valley startup that pulled back from one of its businesses earlier this year. Working on secondary sales That would value the company at $2 billion, TechCrunch EIC Connie Loizos learned. It's a huge, if not entirely unexpected, devaluation for Carta, which originally focused on cap-table management software but over time moved into the “private stock market for companies.” began to change. While Carta's tabletop business is still growing — a source familiar with the matter said Carta had $380 million in revenue last year — it also has a $65 million loss in 2023, and “has a lot of room to grow.” All other places are not.” The result: Companies are increasingly less likely to stick to their prices, much less raise them.

Dollars and cents

Insurance provider The understory Has seen 500% year-on-year growth. Armed with a Fresh $15 million in fundingit is now launching a product focused on the renewable energy sector.

Torpago, a provider of commercial credit card and expense management for community banks, has raised $10 million. New Series B Funding At a cost of $55 million.

Stock trading app Robin Hood Diving deeper into the realm of cryptocurrency with Acquiring of crypto exchanges Bitstamp for $200 million in cash.

Dau Is 14 million dollars raised To bring its fractional property investment platform to Saudi Arabia and Abu Dhabi.

Kleiner Perkins led the way. $14.4 million seed round In YC alum Phase, which offers a credit-building debit card aimed at Gen Z college students. You can hear Equity staff discuss the deal and more below.

What else are we writing?

In early 2022, fintech startups opening up was Accepted to Y Combinator. As the first startup from Sudan to participate in the famous accelerator. Now, after an initial limited launch, a major political upheaval in its home country, an pivot, a small fundraiser. And A rebrand for raise upis the beginning Now open for general availability..

Tensions between incumbents and fintechs have existed for decades. But every once in a while, the two groups decide to put aside their rivalry and work together. In an unusual move, Capital One Working with payment giants (and competitors). bandage and based in Amsterdam Aiden To offer a free product aimed at reducing fraud, the financial services giant told TechCrunch in an exclusive interview.

More interesting headlines

US Bank teams up with a green light on youth bank accounts.s

Bunq, the $1.8 billion European new bank, hopes to secure a license for UK expansion this year

An uncomfortable account of the Brax boys

Priceline, Ramp to sign deal to disrupt 'archaic,' high-fee business travel booking model

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