TPG, Fidelity Get Retroactive Discount After Zenefits Fiasco

  • Zenefits valuation falls to $2 billion from $4.5 billion
  • Common shareholders, including founders, see 20% dilution

Zenefits is effectively cutting the value of its most recent funding round to $2 billion from $4.5 billion so the reeling San Francisco-based startup can give some investors a larger ownership share of the company, after laying off hundreds of employees.

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