Ramp Secures $13 Billion Valuation in Deal Allowing Employees and Investors to Sell Shares
The recent deal allowing some employees and early investors to cash out shares values Ramp at $13 billion, marking a significant increase from its peak valuation of $8.1 billion in 2022. The financing round, which included Khosla Ventures, Thrive Capital, and General Catalyst, demonstrates renewed investor appetite for high-growth startups despite higher interest rates. By selling shares, employees and investors can reduce their need to raise new capital, potentially alleviating pressure on companies to go public.
- This trend of private companies allowing employees to cash out shares could lead to a shift in the way startup growth is measured, with valuations becoming less dependent on external funding.
- As more startups follow Ramp's lead, will we see a reduction in IPO activity, or will this new approach simply provide an alternative means for founders to realize their wealth?