Welcome to TechCrunch Fintech! This week, we look at Rippling’s controversial decision to ban some ex-employees from selling their shares, Carta’s massive valuation drop, a rise in GenZ-focused fintech and more!
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The big story
Investor demand was so high for shares of a hot HR/fintech startup Ripple — tenure sheets worth more than $2 billion, it says — that it’s allowing former employees to participate in its giant tender offer as well, the company told TechCrunch venture capital editor Julie Bort. But there is one big exception: It barred former employees working for a handful of competitors from selling their stock. The news had a few people uproar in Xwith some strongly supporting—and some vehemently denouncing—the move.
Analysis of the week
Carta, a Silicon Valley startup that spun off one of its businesses earlier this year, is working on a secondary sale that would value the company at $2 billion, according to TechCrunch EIC Connie Loizos. That’s a huge, if not entirely unexpected, drop in valuation for Carta, which initially focused on fund management software but began over time to evolve into a “private exchange for companies.” While Carta’s desk funds business is still growing — a familiar source said Carta generated $380 million in revenue last year — it also lost $65 million in 2023 and “there aren’t many other places to grow.” Bottom line: It’s becoming increasingly rare to see companies hold their valuations, much less increase them.
Dollars and cents
Insurance provider Understory has grown 500% year-on-year. Armed with $15 million in new funding, it is now launching a product focused on the renewable energy sector.
Torpago, a provider of commercial credit cards and expense management for community banks, has secured $10 million in new Series B funding at a $55 million valuation.
Stock trading application Robin Hood dives deeper into the realm of cryptocurrencies by acquiring a cryptocurrency exchange Bitstamp for $200 million in cash.
Bet has raised $14 million to bring its fractional real estate investment platform to Saudi Arabia and Abu Dhabi.
Kleiner Perkins led a $14.4M seed round in YC alum Whistlewhich offers a credit-building debit card aimed at Gen Z college students. You can hear the Equity crew discuss this deal and more below.
What else are we writing?
In early 2022, the fintech startup blossom was accepted into Y Combinator as the first startup from Sudan to participate in the famous accelerator. Now, after an initial limited launch, major political upheaval in her home country, a turnaround, a small fundraiser and a rebrand to Liftthe launch is now open for general availability.
The tension between incumbents and fintechs has existed for decades. But every now and then, the two teams decide to put aside their rivalry and work together. In an unusual move, Capital One works with payment giants (and rivals) Film and based in Amsterdam Adyen to offer a free product aimed at reducing fraud, the financial services giant told TechCrunch in an exclusive interview.
High interest titles
US Bank partners with Greenlight on teen bank accountsmall
Bunq, the $1.8 billion European startup, hopes to secure permission to expand into the UK this year
The Brex Boys’ Awkward Account
Priceline, Ramp Sign Deal to Disrupt ‘Archaic’ High-Fee Business Travel Booking Model
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