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Tech unicorn Zenefits loses over half its value

The HR software startup has slashed its valuation from $4.5 billion to $2 billion after its former boss Parker Conrad was found to have written an app called Macro that circumvented state licensing requirements, reports Fortune. Due to this the company is repricing its entire stock and giving some of its Series C investors increased ownership and a permanent seat on the board in exchange for a release of claims against the company. Investors in benefits include TPG Growth, Fidelity Investments, Insight Venture Partners, and Andreessen Horowitz. “This is a unique situation, we’ve never seen it before and we don’t expect to see it again,” a spokesperson for Andreessen Horowitz told Fortune.

[Image: Zenefits]

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