you are welcome TechCrunch FintechThis week, we’re looking at Rippling’s controversial decision to restrict some former employees from selling their stock, Carta’s massive valuation drop, Gen-Z-focused fintech growth, and more!
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Big Story
Investor demand has been very strong for shares of hot HR/fintech startups wavy The company told TechCrunch Venture Desk editor Julie Bort that it has sold more than $2 billion in term sheets, and that it is allowing former employees to participate in its massive tender offer sale. But there is one big exception: it is allowing its employees to participate in its massive tender offer sale. Banned former employees Those who work for a handful of competitors were prevented from selling their stock. This news left people a little confused Ruckus on XSome people are strongly supporting this move, while some are strongly condemning it.
Analysis of the week
CartaThe once high-flying Silicon Valley startup that pulled back strongly from one of its businesses earlier this year has become a major company. Working on Secondary Sales TechCrunch EIC Connie Loizos found that this would put the company’s valuation at $2 billion. That’s a pretty big, if not entirely unexpected, drop in valuation for Carta, which originally focused on cap table management software but over time began evolving into a “private stock marketplace for companies.” While Carta’s cap table business is still growing — a source familiar said Carta generated $380 million in revenue last year — it also faces a $65 million loss in 2023, and “there aren’t a lot of other places for it to grow.” Conclusion: It’s becoming more and more rare to see companies maintain their valuations, let alone increase them.
Dollars and Cents
insurance provider Understory A growth of 500% has been witnessed year-on-year. New funding of $15 millionNow it is launching a product focused on the renewable energy sector.
Torpago, a provider of commercial credit cards and expense management for community banks, has secured a $10 million loan. New Series B funding It is valued at $55 million.
Stock-trading apps Robin Hood Diving deeper into the field of cryptocurrencies acquisition of crypto exchange Bitstamp $200 million in cash.
Stakes Is raised $14 million to bring its fractional property investment platform to Saudi Arabia and Abu Dhabi.
Kleiner Perkins led the way $14.4 million seed round Former YC Alum whistlewhich offers credit-building debit cards for Gen Z college students. You can listen to the Equity crew discuss this deal and more below.
What else are we writing about?
In early 2022, fintech startups bloom Was Accepted into Y Combinator The first startup from Sudan to participate in the renowned accelerator. Now, after an initial limited launch, a major political upheaval in their country, a pivot, a small fundraising effort And a rebrand improvementThe startup is Now open for general availability,
Tensions between incumbents and fintech companies have existed for decades. But sometimes the two groups decide to put their competition aside and work together. In an unusual move, capital a Working together with payments giants (and rivals) strip and Amsterdam-based Adyenn The financial services giant told TechCrunch in an exclusive interview that the company plans to offer a free product aimed at reducing fraud.
High-interest headlines
US bank greenlights initiative on teen bank accountsS
Bunq, a $1.8 billion European neobank, hopes to get a license to expand in the UK this year
An uneasy assessment of the Brex boys
Priceline and Ramp tie up to transform ‘outdated’, high-fee business travel booking model
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