SCHEDULE 13G/A: Benchmark Capital Funds Report 0.0% Stake in Cyngn Inc. Following Dilution and Reverse Stock Splits

Benchmark Capital Partners and affiliated entities have filed an amended Schedule 13G, disclosing that their beneficial ownership in Cyngn Inc. has fallen to 0.0% due to recent share issuances and reverse stock splits by the issuer.

Summary

• This is an Amendment No. 2 to a Schedule 13G filing by Benchmark Capital Partners VI, L.P., Benchmark Founders' Fund VI, L.P., Benchmark Founders' Fund VI-B, L.P., Benchmark Capital Management Co. VI, L.L.C., Benchmark Capital Partners VII, L.P., Benchmark Founders' Fund VII, L.P., Benchmark Founders' Fund VII-B, L.P., Benchmark Capital Management Co. VII, L.L.C., and individual members Alexandre Balkanski, Matthew R. Cohler, Bruce W. Dunlevie, Peter H. Fenton, J. William Gurley, Kevin R. Harvey, Robert C. Kagle, and Mitchell H. Lasky (collectively, the "Reporting Persons").
• The filing reports that as of March 31, 2025, the Reporting Persons collectively beneficially own 0.0% of Cyngn Inc.'s Common Stock.
• The aggregate amount beneficially owned by Benchmark Capital Management Co. VI, L.L.C. is 22 shares, while Benchmark Capital Management Co. VII, L.L.C. beneficially owns 657 shares.
• Individual members like Matthew R. Cohler, Bruce W. Dunlevie, Peter H. Fenton, J. William Gurley, Kevin R. Harvey, and Mitchell H. Lasky are deemed to have shared voting and dispositive power over 679 shares.
• The decrease in ownership below the 5% threshold is attributed to dilution caused by the issuance of additional shares by Cyngn Inc. and the issuer's reverse stock splits of its outstanding shares of Common Stock.
• As of May 7, 2025, Cyngn Inc. had 1,751,906 shares of Common Stock outstanding, as reported in its Form 10-Q for the period ended March 31, 2025.
• The Reporting Persons ceased to be beneficial owners of more than five percent (5%) of Cyngn Inc.'s shares.

Sentiment

Score: 5

Explanation: The document is a neutral, factual compliance filing (Schedule 13G) reporting a change in beneficial ownership. It does not contain positive or negative operational or financial news from the company's perspective, nor does it express sentiment from the reporting entities beyond the required disclosure.

Risks

• The document does not explicitly state new risks for Cyngn Inc. but implies that the company has undergone significant capital structure changes, including issuance of additional shares and reverse stock splits, which can sometimes be associated with financial challenges or strategic adjustments.

Future Outlook

NA

Industry Context

This filing is a standard regulatory disclosure reflecting a change in a significant investor's stake. It does not provide broader industry trends or competitive analysis. The mention of dilution and reverse stock splits by Cyngn Inc. suggests internal corporate finance activities, which may or may not be reflective of broader industry trends.

Stakeholder Impact

• Shareholders: Existing shareholders may have experienced dilution due to the issuance of additional shares and reverse stock splits, which led to the Reporting Persons' reduced percentage ownership. The reverse stock splits would have reduced the number of outstanding shares while proportionally increasing the share price, but the overall value of holdings would depend on the specific terms and market reaction.
• Reporting Persons (Benchmark Capital): Their investment in Cyngn Inc. has been significantly reduced in terms of percentage ownership, indicating a potential shift in their investment strategy or a consequence of the issuer's corporate actions.

Key Dates

Keywords

Cyngn Inc., Schedule 13G, Beneficial Ownership, Benchmark Capital, Common Stock, Dilution, Reverse Stock Split, SEC Filing, Ownership Disclosure