After SVB Fails, Startup Rippling Raises $500 Million In Funding

When one of its venture capital backers raced to support the workforce-management software firm following the collapse of Silicon Valley Bank, Rippling has received $500 million at a valuation of $11.25 billion.

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Despite a market correction that has stopped most entrepreneurs from acquiring money at advantageous terms, the emergency round arranged by Greenoaks Capital offers Rippling the same valuation it obtained in a fundraising last year.

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According to Rippling co-founder Parker Conrad, the deal came together in roughly 12 hours as Rippling scrambled to obtain $300 million that was frozen at SVB after it failed on Friday.

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In an interview, he claimed, "I was capable of making a few phone conversations and get a shake contract with Greenoaks. "We had to wire early on Monday morning and close over the weekend."

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The day SVB was taken by the Federal Deposit Insurance Corp., Rippling was supposed to help many of its clients with payroll, he claimed. Rippling fronted $130 million in cash to its customers in the hopes that it would be able to reclaim the majority of its money, which was locked up in the bank. When the government guaranteed all deposits at SVB, that outlook now appears favorable.

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With the increased capital, Conrad estimated that Rippling will have over $1 billion in unrestricted cash on its balance sheet.

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Because he has been impressed with Rippling's success and believes it will continue, Neil Mehta, managing partner at Greenoaks Capital, said wiring the emergency money was not a problem. He appreciates that Rippling has created a robust software platform that offers items like worldwide compliance and employee onboarding.

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Conrad, who quit corporate software startup Zenefits amid allegations of breaking rules and ultimately reached a settlement with the US Securities and Exchange Commission, is also a hero to him.

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This is a somebody who works with high ethics, I would proclaim from the rooftops," Mehta remarked.

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Kleiner Perkins, Sequoia Capital, Coatue Management, and Founders Fund are some of Rippling's current backers.