
Zenefits Slashes Valuation to $2B in Deal with Big Investors - coloneltcb
https://www.buzzfeed.com/williamalden/zenefits-slashes-valuation-to-2-billion?utm_term=.hnLYvEVXow#.xrwYZegqn8
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dharmon
This is a sober reminder for those raising money. Even if you go with the
"friendly" VCs, they will be happy to screw you over the moment you show
weakness. (not that Benefits doesn't deserve it)

No doubt during Zenefits' Series A/B/C they had the upper hand in
negotiations, and now the tables have turned. Would a16z really sue one of
their portfolio companies? I guess Sacks doesn't want to find out, and is
eager not to piss these guys off, since he will no doubt need more money
sooner rather than later.

Of course, the saddest line is this:

"Common stock owned by Zenefits employees will be diluted by 20% in the deal"

As is all too common, common shareholders pay for the sins of a few.

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tarr11
"Each non-executive employee of Zenefits will be “trued up” through a special
stock grant equal to 25% of their current number of shares. This new grant
will vest 100% in 12 months. It will consist of RSUs rather than options so
that employees don’t have to pay a strike price."

