Fintech Startup and SVB Partner Rippling Raises $500M After Bank Collapse
Rippling, a San Francisco-based workforce management company, raised $500 million in a Series E funding round following the collapse of Silicon Valley Bank (SVB), its primary banking partner.
The cash infusion values Rippling at $11.25 billion, the same as the company’s Series D financing in May 2022. The round closed within three days; Rippling’s CEO Parker Conrad wrote in a company blog post.
Following the Federal Deposit Insurance Corporation (FDIC) takeover of SVB on March 10, the day the company had to pay over 50,000 people, Rippling extended $130 million of its own capital to fund customer payments to their employees.
The firm leveraged its backup payments infrastructure with JP Morgan Chase to ensure most customers’ employees received their pay that same day.
Rippling was able to raise capital by the following Monday morning after turning to long-time investor Greenoaks. Despite the FDIC confirming all SVB deposits would be guaranteed, Rippling decided to move forward with the financing round.
Since closing its Series E, Rippling said it has recovered all its funds from SVB and has about $1 billion in cash.