Form 4: Battery Ventures Distributes Braze, Inc. Shares In-Kind to Limited Partners

Battery Ventures distributed Braze, Inc. Class A Common Stock to its members and limited partners via pro rata, in-kind distributions on October 2, 2024.

Summary

• On October 2, 2024, Battery Partners XI, LLC and related entities distributed shares of Braze, Inc. Class A Common Stock to their respective members and limited partners.
• These distributions were conducted on a pro rata, in-kind basis, meaning shares were distributed proportionally to existing ownership without additional consideration.
• The reporting entities include Battery Partners XI, LLC, Battery Investment Partners XI, LLC, Battery Ventures XI-A, L.P., Battery Ventures XI-B, L.P., Battery Ventures XI-A Side Fund, L.P., Battery Ventures XI-B Side Fund, L.P., and Battery Partners XI Side Fund, LLC.
• The distributions did not involve a purchase or sale of securities.
• After the transactions, Battery Partners XI, LLC directly holds 131,766 shares of Class A Common Stock.
• Indirect holdings through various Battery Ventures entities are as follows: Battery Investment Partners XI, LLC holds 31,728 shares, Battery Ventures XI-A, L.P. holds 684,570 shares, Battery Ventures XI-B, L.P. holds 180,878 shares, Battery Ventures XI-A Side Fund, L.P. holds 711,224 shares, Battery Ventures XI-B Side Fund, L.P. holds 154,224 shares, and Battery Partners XI Side Fund, LLC holds 750,000 shares.
• The filing clarifies that the reporting persons disclaim beneficial ownership of the indirectly held securities except to the extent of their pecuniary interest.

Sentiment

Score: 6

Explanation: The document is a standard SEC filing related to a distribution of shares. It doesn't contain overtly positive or negative information, hence a neutral sentiment score.

Positives

• The distribution of shares to limited partners could be seen as a positive as it allows them to directly benefit from the investment in Braze, Inc.

Industry Context

In-kind distributions are a common practice in the venture capital and private equity industries, allowing firms to return value to their investors by distributing shares of portfolio companies.

Comparison to Industry Standards

• Similar distributions are often seen when venture capital funds mature and seek to return capital to their limited partners.
• Other venture capital firms like Sequoia Capital and Andreessen Horowitz have also distributed shares of portfolio companies to their investors in the past.

Stakeholder Impact

• Shareholders: The distribution may slightly dilute existing shareholders, but the impact is likely minimal.
• Limited Partners: Limited partners of Battery Ventures receive direct ownership of Braze, Inc. shares.

Key Dates