Form 4: Accel India III and Accel Growth FII Distribute Freshworks Shares to Partners

Accel India III (Mauritius) Ltd. and Accel Growth FII (Mauritius) Ltd. distributed a total of 2,000,000 Class A common stock shares of Freshworks Inc. to their partners on August 27, 2024.

Summary

• Accel India III (Mauritius) Ltd. (AIN3M) and Accel Growth FII (Mauritius) Ltd. (AGF2M) filed Form 4 documents with the SEC.
• On August 27, 2024, both AIN3M and AGF2M distributed 1,000,000 shares each of Freshworks Inc. Class A common stock to their respective partners.
• The distributions were made for no consideration and represented each partner's pro rata interest in the shares.
• These distributions were made in accordance with exemptions afforded by Rules 16a-13 and 16a-9 of the Securities Exchange Act of 1934.
• Ryan Connor, as a Director of both Accel India III (Mauritius) Ltd and Accel Growth FII (Mauritius) Ltd, signed the filings on August 29, 2024.
• The filings also include a Power of Attorney, granting Ryan Connor the authority to execute Forms 3, 4, and 5 on behalf of Accel Growth FII (Mauritius) Ltd, Accel India III (Mauritius) Ltd, Accel India IV (Mauritius) Limited, Accel Leaders Holdings (Mauritius) Ltd, and Accel Leaders II Holdings (Mauritius) Ltd.

Sentiment

Score: 6

Explanation: The document itself is neutral, simply reporting a distribution of shares. The sentiment is slightly positive as it represents a return of value to the investors in the Accel funds.

Positives

• The distribution of shares to partners could be seen as a positive sign, indicating a desire to distribute value to the investors in the Accel funds.

Industry Context

Venture capital firms like Accel often distribute shares of portfolio companies to their limited partners as part of the fund's lifecycle. This allows the partners to directly benefit from the investment and manage their own positions in the public market.

Comparison to Industry Standards

• Distributions of shares to limited partners are a common practice in the venture capital industry.
• Other venture firms like Sequoia Capital and Andreessen Horowitz have also distributed shares of their portfolio companies to their limited partners after IPOs.
• The timing and method of distribution can vary depending on the fund's structure and the specific agreements with its limited partners.

Stakeholder Impact

• Shareholders: The distribution of shares could potentially increase the float and trading volume of Freshworks stock.
• Partners of Accel India III and Accel Growth FII: These partners directly benefit from receiving shares of Freshworks.

Key Dates