rabbit106

Good point. But Andreessen also put a lot into the series C round. I don't have all the numbers handy to do the math on whether approx. doubling their series C interest cancels the dilution of their series A and B interest. I just kind of assumed that it did. Sorry if I am wrong.

One interesting fact this analysis is missing is that the board that must have approved this deal is mostly series c investors. Even if the deal is a good way to right past wrongs, it is still an instance of a board paying itself. Still, very nice thoughts. I agree that this is likely what happened.

That said, there are some assumptions in here that we need to remember are assumptions. We don't know for sure what was and was not in the disclosures. And, thinking back on the news about the actual software program, I don't remember that it "facilitated and attempted to cover blatant regulatory violations." Didn't it just run down the clock on an online course but NOT go through any material or take tests? Maybe it was not as obviously material as it seems now.

Where do you get "willingly, knowingly committing . . . felonies in the interest of making money . . ."? That's not what any of the articles say.

Inadequate process controls means employees were supposed to follow the law but things slipped through the cracks sometimes. Seems that happened a lot in Washington. But I'm pretty sure most of Zenefits' business is in CA. I would assume the brokers for most sales were licensed properly.