Comment on Zenefits CEO cuts deal with investors to avoid litigation, slash valuation

Zenefits CEO cuts deal with investors to avoid litigation, slash valuation

In the latest surprise from fallen favorite Zenefits, CEO David Sacks has given Series C investors a bigger stake in the company to compensate them for its shrinking valuation of just $2 billion — less than half what it was just over a year ago. Investors put $500 million into the then-high-flying health care insurance and benefits startup last May, which at the time gave them an 11 percent stake in a venture valued at $4.5 billion. In return, Zenefits is requiring that those investors agree…

 

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