Fintech
Rippling’s public offering decision elicits mixed and strong reactions
Welcome to TechCrunch Fintech! This week we’ll look at Rippling’s controversial decision to ban some former employees from selling their shares, Carta’s massive drop in valuation, a rise in GenZ-focused fintech, and more!
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The big story
Investor demand has been very strong for shares of the most active HR/fintech startups Ruffled — more than $2 billion in terms, it says — that is also allowing former employees to participate in its giant public offering sale, the company told TechCrunch venture desk editor Julie Bort. But there is one big exception: this is it banned former employees who work for a handful of competitors by selling their shares. The news made people nervous a riot on Xwith some vehemently supporting – and others strongly denouncing – the move.
Analysis of the week
Papera once-successful Silicon Valley startup that loudly withdrew from one of its businesses earlier this year, is working on a secondary sale that would value the company at $2 billion, TechCrunch EIC’s Connie Loizos has learned. This is a massive, if not entirely unexpected, drop in the valuation of Carta, which originally focused on capitalization table management software but over time began to evolve into a “private stock market 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 lost $65 million in 2023, and “there aren’t many more places to grow.” Bottom line: It’s becoming increasingly rare to see companies maintain their valuations, much less raise them.
Dollars and cents
Insurance provider Undergrowth saw 500% growth year over year. Armed with a new financing of 15 million dollarsis now launching a product focused on the renewable energy sector.
Torpago, a provider of commercial credit cards and expense management to community banks, has secured $10 million new series B financing on a valuation of $55 million.
App for stock trading Robin Hood is diving deeper into the cryptocurrency realm with acquisition of cryptocurrency exchange Bitstamp for $200 million in cash.
Pole has raised 14 million dollars bring its fractional real estate investment platform to Saudi Arabia and Abu Dhabi.
Kleiner Perkins was driving a $14.4 million seed round in YC alum Effervescentwhich offers a credit-building debit card aimed at Gen Z college students. You can listen to the Equity team discuss this deal and more below.
What else are we writing
The fintech startup at the beginning of 2022 Flowering era accepted into Y Combinator as the first Sudanese startup to participate in the famous accelerator. Now, after a limited initial launch, a major political upheaval in its home country, a turnaround, a little fundraising and a rebranding for Elevatethe boot is now open for general availability.
The tension between incumbents and fintechs has existed for decades. But every now and then, the two groups decide to put aside the competition and work together. In an unusual move, Capital One is teaming up with payments giants (and rivals) Band and based in Amsterdam Adyen to offer a free product aimed at reducing fraud, the financial services giant told TechCrunch in an exclusive interview.
Titles of great interest
US Bank partners with Greenlight on teen’s bank accountS
Bunq, the $1.8 billion European neobank, hopes to get license for UK expansion this year
The uncomfortable showdown of the Brex boys
Priceline and Ramp Sign Deal to Disrupt ‘Archaic’ Model of High-Fee Business Travel Booking
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