Form 4: Lightspeed Entities Convert Preferred Stock to Common Stock in Rubrik, Inc. IPO

Lightspeed SPV I, LLC and related entities converted preferred stock to Class A and Class B common stock in connection with Rubrik, Inc.'s initial public offering on April 29, 2024.

Summary

• Lightspeed SPV I, LLC, along with affiliated entities, filed a Form 4 with the SEC detailing changes in beneficial ownership of Rubrik, Inc. securities.
• The filing reports the conversion of various series of preferred stock (Series A, B, C, D, and E) into Class B Common Stock on a one-for-one basis immediately prior to Rubrik's IPO.
• Lightspeed entities also converted Class B Common Stock into Class A Common Stock.
• The transactions occurred on April 29, 2024.
• The reporting persons include Lightspeed SPV I, LLC, Lightspeed SPV I-B, LLC, Lightspeed SPV I-C, LLC, LS SPV Management, LLC, Barry Eggers, and Peter Nieh.
• These entities and individuals are associated with Lightspeed Venture Partners and hold director and/or 10% owner positions.
• Ravi Mhatre, a director of Rubrik, Inc., signed the filing on behalf of several Lightspeed entities.

Sentiment

Score: 7

Explanation: The document reflects a standard process related to an IPO, indicating a positive step for the company. The sentiment is neutral to positive as it represents a milestone achievement.

Positives

• The conversion of preferred stock to common stock simplifies Rubrik's capital structure.
• Lightspeed's continued ownership indicates confidence in Rubrik's future prospects.

Industry Context

This filing is a standard part of the IPO process, where major shareholders adjust their holdings and ownership structures in preparation for the company becoming publicly traded. Venture capital firms like Lightspeed often convert their preferred shares to common shares at the time of an IPO.

Comparison to Industry Standards

• The conversion of preferred stock to common stock is a typical procedure for venture-backed companies undergoing an IPO, aligning the interests of early investors with public shareholders.
• Lightspeed's actions are consistent with other venture capital firms like Sequoia Capital, Andreessen Horowitz, and Accel Partners, who also adjust their holdings during the IPOs of their portfolio companies.
• The specific conversion ratios and ownership percentages are unique to Rubrik and its financing history, but the overall process is a standard practice in the venture capital and IPO landscape.

Stakeholder Impact

• The conversion of preferred stock to common stock impacts shareholders by changing the capital structure and potentially affecting voting rights.
• Employees with stock options or equity grants will see their holdings reflected in the new common stock structure.
• Customers and suppliers are unlikely to be directly impacted by this filing, as it primarily concerns internal ownership changes.

Key Dates