Rippling is giving out RSU's at a $9 billion valuation despite raising late last year at a $6.5 billion valuation. Apparently, the board sets a valuation for new grants each quarter and justifies the $9 billion based on secondary sales. This seems kind of shady since it is basically asking new employees to come in at a price that insiders are cashing out at. On top of that, secondary sales can be very illiquid, much smaller in size, and not reflective of the actual market (especially with public tech stocks taking big hits recently). Also, in what world would the board ever lower the valuation? It seems like they would only have upwards pressure.
Aside from this, I do like the company and am considering joining, this just seems like a bit of a red flag.
People at Rippling, have you still been able to close talented people over the last quarter even with these terms?
People of Blind, is the sort of thing normal for late-stage high-growth startups? I haven't seen it before, but I do have a relatively small sample size.
#rippling #tech #rsu #rsus
Want to see the real deal?
More inside scoop? View in App
More inside scoop? View in App
blind
SUPPORT
FOLLOW US
DOWNLOAD THE APP:
FOLLOWING
Industries
Job Groups
- Software Engineering
- Product Management
- Information Technology
- Data Science & Analytics
- Management Consulting
- Hardware Engineering
- Design
- Sales
- Security
- Investment Banking & Sell Side
- Marketing
- Private Equity & Buy Side
- Corporate Finance
- Supply Chain
- Business Development
- Human Resources
- Operations
- Legal
- Admin
- Customer Service
- Communications
Return to Office
Work From Home
COVID-19
Layoffs
Investments & Money
Work Visa
Housing
Referrals
Job Openings
Startups
Office Life
Mental Health
HR Issues
Blockchain & Crypto
Fitness & Nutrition
Health Care & Insurance
Travel
Tax
Hobbies & Entertainment
Working Parents
Food & Dining
IPO
Side Jobs
Show more
SUPPORT
FOLLOW US
DOWNLOAD THE APP:
comments
My friend got 200k+ stocks from Zenefits when they joined and they recently sold it for less than 200$ because they diluted the shares so heavily and the company got sold for pennies recently.
I would not recommend joining it. If you want to join it for visa/etc. then it is a different story.
What is your offer? Lets see if there is room to make it better.
I don't understand how you can tell your investors you are worth $6.5 BB in October and then turn around and say that based on secondary market sales in the mother of all bubbles a couple of months later that oh now we are actually worth $9 BB.