Venture capitalists pressured Parker Conrad to step down from his health insurance startup, Zenefits, after the company was found to have skirted insurance regulations. Now, three years later, Mr. Conrad is going back to them for funding for his new company, Rippling.
The Silicon Valley venture firm Kleiner Perkins is expected to be the lead investor in a new round of funding for Rippling, which competes against Zenefits with software for managing employee health insurance, payroll and other human resources functions, according to four people briefed on the matter. Mr. Conrad has discussed raising at least $30 million in a round that would value Rippling between $200 million and $300 million, said three of those people. But the amount of funding Rippling ends up raising hasn’t been determined yet and could be higher, two people said.