Rippling RSU situation seems a bit shady

New
bigRex

New

bigRex
7d 24 Comments

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

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TOP 24 Comments
  • Google
    leavingg

    Go to company page Google

    leavingg
    Rippling team is ex-Zenefits which is where they committed a lot of fraud. CEO was removed from the company because of this.

    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.
    7d 2
    • New
      bigRex

      New

      bigRex
      OP
      Visa is not a consideration. Just looking for a high-growth startup with a good amount of upside left.
      7d
    • Cloudera
      heyWhoDis?

      Go to company page Cloudera

      heyWhoDis?
      Not diluted, lost value. Inflated in the first place.
      7d
  • Stripe
    🟒 ya yeet

    Go to company page Stripe

    🟒 ya yeet
    Red flag.
    7d 0
  • Yes, we have no problems closing candidates. Org is at 1200+ now. 2x from a year ago. IPO is about 2 years away.

    What is your offer? Lets see if there is room to make it better.
    7d 9
    • There are a few teams that have a lot of business logic work if that’s what you’re referring to, but that has been getting better as we hit scale across the board. Platform seems to deal with some interesting scale problems - look for any references online to the Unity products for details.
      4d
    • Tried looking at some literature on Workflows, Approvals, RQL etc. How's these things in hub?
      4d
  • Grab
    sTplY

    Go to company page Grab

    sTplY
    That's a common practice
    7d 0
  • Meta
    Slicksta

    Go to company page Meta

    Slicksta
    In the exact same situation as you at the moment with an offer from them.

    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.
    7d 2