HR software company Rippling raised a $200M Series F led by Coatue at a $13.5B valuation, up from $11.25B in March 2023, and a separate $590M tender offer
what a powerful recruiting tool, I have to imagine it also continues to foster trust internally among employees at scale too @parkerconrad https://www.rippling.com/... Varun Mayya / @waitin4agi_ : Seems like Rippling just raised $200M at a valuation of 13.5B. It's also floating a tender of 590M, where current+former Rippling employees can sell 200M and seed investors can sell 390M. Rippling has a big team in India - this might create a big amount of liquidity for them. Rachel Sterne Haot / @rachelhaot : “Rippling has been a narrative violation since the day Parker founded it” Rippling is built different. @ycombinator : Congrats @parkerconrad and the team @Rippling on the $200M Series F! https://www.rippling.com/... David J Phillips / @davj : Congratulations to @parkerconrad and the @Rippling team on their new round! https://techcrunch.com/...
TechCrunchConnie Loizos
Context & Ripple Effects
Rippling’s financing marks a valuation step-up from the $11.25B level maintained during its 2023 Series E, which was raised amid the SVB deposit freeze. It also follows an earlier report that the company was preparing a Series F and substantial shareholder liquidity event at a valuation around $13.4B.
The company’s funding history shows a progression from a $6.5B valuation in 2021 to repeated financing at $11.25B in 2022 and 2023. The new round combines fresh operating capital with a tender offer, separating the company’s balance-sheet financing needs from liquidity for employees and early backers.
First-order effects
Rippling receives $200M of new capital led by Coatue at a $13.5B valuation, while the tender offer creates a route for current and former employees and seed investors to sell shares.
The valuation increase validates a higher private-market price than Rippling’s prior 2023 round, while giving qualifying shareholders partial liquidity without a public listing.
Second-order effects
The tender can improve Rippling’s retention and recruiting proposition by making equity compensation more tangible for employees, including former staff eligible to sell.
Other late-stage private software companies face added pressure to offer structured employee and early-investor liquidity when they can secure a new financing at an improved price.
Third-order effects
If similar financings persist, late-stage startups may increasingly use paired primary rounds and secondary tenders as a private-market substitute for some functions of an IPO.
Access to both new capital and shareholder liquidity is likely to remain concentrated among companies able to command valuation support from major growth investors; the durability of that divide depends on private-market pricing holding up.
The trend: Late-stage private software companies are pairing fresh fundraising with controlled secondary liquidity to retain talent and sustain ownership markets before an eventual exit.
Rippling has to be the greatest comeback in the history of tech. Here's the story told through interviews with the team. Great analysis in the quoted thread below. [video]
Seems like Rippling just raised $200M at a valuation of 13.5B. It's also floating a tender of 590M, where current+former Rippling employees can sell 200M and seed investors can sell 390M. Rippling has a big team in India - this might create a big amount of liquidity for them.
pretty neat to see @Rippling publish their latest investor memo that they used for their most recent Series F — what a powerful recruiting tool, I have to imagine it also continues to foster trust internally among employees at scale too @parkerconrad https://www.rippling.com/...
Rippling is 🔥. @parkerconrad's unique “compound startup” strategy is changing the game for scaling software companies. I highly recommend taking a read of the investment memo they put together for this raise, one of my favorite parts: companies running Rippling are able to... [im…
Very excited for @parkerconrad and the entire @Rippling team! New $200M primary round at $13.4B valuation led by @coatuemgmt https://techcrunch.com/...
Today, Rippling announced $200M in funding at a $13.4B valuation. In 2023, the company had ~$350M in ARR. But back in 2019 at ~$3M ARR, the team put out a Series A memo laying out everything they wanted to accomplish. Here's how they've stacked up to their own expectations... [im…
. @parkerconrad has been the most tenacious and determined builder i've ever seen since I saw him ME our college newspaper. so impressed with what he and the team have built at rippling but not surprised at all. https://www.rippling.com/...
Big news: Announcing our series F and tender offer led by @coatuemgmt, with @foundersfund, @greenoaksfund, and others participating. With this funding, we'll keep investing heavily in R&D 🥽 & build even more robust products 🧱 Read the full story: https://www.rippling.com/...