Form 4: ThredUp Director Sells Shares Under 10b5-1 Plan

A ThredUp director, Patricia Nakache, executed multiple sales of Class A Common Stock under a pre-arranged 10b5-1 trading plan, while also converting and acquiring shares through related entities.

Summary

• Patricia Nakache, a director at ThredUp Inc., engaged in several transactions involving the company's Class A Common Stock.
• These transactions occurred on January 23, 2025, and January 24, 2025, and included both the acquisition and disposal of shares.
• The sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on March 15, 2024.
• Shares were sold at weighted average prices of $2.10 on January 23 and $2.23 on January 24.
• The transactions also involved the conversion of Class B Common Stock to Class A Common Stock at no additional cost.
• Nakache's transactions were conducted both directly and indirectly through entities like Trinity Ventures X, L.P., Trinity X Entrepreneurs' Fund, L.P., and Trinity X Side-By-Side Fund, L.P.

Sentiment

Score: 5

Explanation: The document is a routine disclosure of insider trading activity under a pre-arranged plan. It doesn't indicate any significant positive or negative sentiment.

Risks

• The sale of shares by a director could be perceived negatively by the market, potentially impacting the stock price.
• The reliance on a 10b5-1 trading plan suggests a pre-determined strategy for selling shares, which may not align with future market conditions.

Management Comments

• The Reporting Person did not participate in the consideration or the adoption of the Rule 10b5-1 Plan.
• The Reporting Person disclaims beneficial ownership of the shares reported herein except to the extent of her pecuniary interest therein.

Industry Context

This filing is a routine disclosure of insider trading activity, which is common for publicly traded companies. The use of a 10b5-1 plan is a standard practice to avoid accusations of insider trading.

Comparison to Industry Standards

• The use of a 10b5-1 trading plan is a common practice among executives and directors of publicly traded companies to manage their personal finances while avoiding accusations of insider trading.
• Similar filings are regularly made by insiders at companies like eBay, Poshmark, and other e-commerce platforms, reflecting standard compliance procedures.

Stakeholder Impact

• The sale of shares by a director may cause some concern among shareholders, but the use of a 10b5-1 plan mitigates the risk of insider trading concerns.

Key Dates

Keywords

ThredUp, insider trading, Form 4, 10b5-1 plan, share sale, Class A Common Stock, Class B Common Stock, Patricia Nakache, Trinity Ventures