Zenefits’ Value Drops Nearly $3 Billion In Less Than A Year
Since the startup's high point, founder and CEO Parker Conrad has been ousted, former COO David Sacks took over, 250 staffers were laid off and the company has been investigated by state insurance regulators in Washington, California and reportedly other states.
The San Francisco Business Times:
Zenefits Lost Two-Thirds Of Its Value
The valuation of once high-flying technology leader Zenefits is less than $2 billion now, or 65 percent less than its May 2015 high point, following another write down by mutual fund giant Fidelity Investments. The write down, reported Wednesday by the Wall Street Journal, was part of a flurry of valuation drops by Fidelity, reflecting its analysis of what its investments in a number of huge private technology companies were worth at the end of February. (Rauber, 3/30)
The Wall Street Journal:
Fidelity Marks Down Startups Including Dropbox, Zenefits
Mutual-fund giant Fidelity Investments took an ax to the valuations of its private technology shares in February, cutting bellwether software startups like Dropbox Inc., Cloudera Inc. and Zenefits by as much as 38% compared with the prior month. On Wednesday, the Boston-based company released valuation estimates as of Feb. 29 for the holdings in its various mutual funds. The reports are closely watched in Silicon Valley because they offer among the few public gauges for how closely held startup values are trending. (Winkler, 3/30)
In other news —
The Sacramento Business Journal:
Davis Biotech Firm Says Financial Scandal Cost $13M
Davis biotechnology company Marrone Bio Innovations Inc. reported lower losses in 2015 as the company worked through the effects of a major financial setback. But the firm also revealed costs from that setback have reached $13 million. The biopesticide maker's revenue for 2015 was $9.8 million, up from $9.1 million the previous year. The company lost $43.7 million in 2015, compared to a loss of $51.7 million the year earlier. (Anderson, 3/30)