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Early Zenefits Investors Still Sitting Pretty

Zenefits’ decision to slash its valuation by more than half has been portrayed as hurting VCs who invested early much more than recent investors and employees. But a closer look at the details suggests that series A investors will still be sitting on a paper return of 1,800% after the revaluation.

And despite a previously unreported repricing of employee stock options, employees may be worse off than they would have been under the old valuation.

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UPDATE: This story has been updated to include a statement from Zenefits and by explaining the impact of the revaluation on employees with a different example. Separately, David Sacks became CEO in February. An earlier version of this story incorrectly said he became CEO last year.

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The company’s board has also approved repricing employee options dating back to early 2015 to an exercise price of 55 cents.