Rippling struck a $500 Million deal as SVB was melting down

Following the failure of Silicon Valley Bank, one of Rippling's venture capital backers has raised $500 million at a valuation of $11.25 billion to support the workforce-management software supplier.

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Despite a market correction that has stopped most startups from acquiring money at advantageous terms, the emergency round arranged by Greenoaks Capital offers Rippling the same valuation it obtained in fundraising last year.

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According to Rippling co-founder Parker Conrad, the deal came together in roughly 12 hours as Rippling scrambled to obtain $300 million that was frozen at SVB after it failed on Friday.

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He claimed in an interview, "I was able to make a few phone calls and get a handshake contract with Greenoaks. We had to wire money first thing on Monday morning and shut over the weekend.”

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On the day that SVB was taken over by the Federal Deposit Insurance Corp., Rippling was supposed to help many of its clients with payroll. Rippling fronted its clients $130 million in cash, with the hope that it would be able to recoup the majority of its money as it had money locked up at the bank. Now that the government has guaranteed all deposits at SVB, that outlook appears promising.

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Rippling will now have about $1 billion in unrestricted cash on its balance sheet as a result of the increased capital, according to Conrad.

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Greenoaks Capital managing partner Neil Mehta said he had no trouble transmitting the emergency cash since he has been impressed with Rippling's expansion and believes it will continue. He appreciates the fact that Rippling has created a comprehensive software platform, which includes items like worldwide compliance and staff onboarding.

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He is also a huge fan of Conrad, who quit corporate software start-up Zenefits after being accused of breaking the law and ultimately reached a settlement with the US Securities and Exchange Commission.

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“This is a person who operates with high ethics, I would proclaim from the rooftops," Mehta remarked.

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Kleiner Perkins, Sequoia Capital, Coatue Management, and Founders Fund are some of Rippling's current backers.