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

Patricia Nakache, a director of ThredUp Inc., reports the sale and conversion of Class A and Class B Common Stock through Trinity Ventures under a pre-arranged 10b5-1 trading plan.

Summary

• Patricia Nakache, a director of ThredUp Inc., filed a Form 4 detailing changes in beneficial ownership.
• The transactions involve the conversion of Class B Common Stock into Class A Common Stock and the sale of Class A Common Stock.
• These transactions were executed under a Rule 10b5-1 trading plan adopted on March 15, 2024.
• The sales occurred on May 28, 29, and 30, 2024, at weighted average prices ranging from $2.07 to $2.11.
• The shares were held indirectly through Trinity Ventures X, L.P., Trinity X Entrepreneurs' Fund, L.P., and Trinity X Side-By-Side Fund, L.P.
• Nakache disclaims beneficial ownership of these shares except to the extent of her pecuniary interest.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing detailing stock transactions. It doesn't inherently convey positive or negative sentiment, but rather reports factual information about share sales and conversions.

Industry Context

The filing reflects routine transactions by a significant shareholder, Trinity Ventures, and is typical for venture capital firms managing their holdings in publicly traded companies. The use of a 10b5-1 plan suggests a pre-planned and orderly approach to these transactions.

Comparison to Industry Standards

• Venture capital firms like Accel, Kleiner Perkins, and Sequoia Capital often utilize 10b5-1 trading plans to manage their holdings in publicly traded companies, similar to Trinity Ventures' approach with ThredUp.
• The reported weighted average sale prices of $2.07 to $2.11 are within the typical range for transactions executed under such plans, reflecting the prevailing market conditions at the time of the sales.
• The disclaimers of beneficial ownership, except to the extent of pecuniary interest, are standard practice for partners or members of venture capital firms who share voting and dispositive power over fund holdings.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the sale of shares, but the pre-planned nature of the sales mitigates potential concerns.
• Employees are unlikely to be directly affected by these transactions.
• Customers, suppliers, and creditors are not expected to be impacted by these transactions.

Key Dates