After Zenefits, Will VCs Rein in Their Unicorns?
The $4.5 billion benefits startup moved fast and broke things—maybe even the law.
Parker Conrad
Photograph by Amy Harrity for Bloomberg BusinessweekThis article is for subscribers only.
In a Feb. 1 meeting at its blandly luxurious Sand Hill Road offices, venture firm Andreessen Horowitz urged the chief executive officer of one of its most prized and promising companies to resign.
Zenefits makes software designed to simplify and automate such HR tasks as health insurance signups. At three years old, it’s valued at $4.5 billion and is one of the fastest-growing business software companies ever. Under founding CEO Parker Conrad, it also made software that allowed its employees to skirt state regulatory requirements, the company now admits.