Social Capital Sells Hustle to Employees as Equity Gap Shrinks From 500-to-1 to 4-to-1
Updated
Updated · POLITICO · May 19
Social Capital Sells Hustle to Employees as Equity Gap Shrinks From 500-to-1 to 4-to-1
1 articles · Updated · POLITICO · May 19
Hustle said Social Capital has sold the Democratic campaign-texting company to its employees, shifting control after internal strain over owner Chamath Palihapitiya’s 2024 support for Donald Trump.
CEO Jesse Hassinger said the sale was meant to realign ownership with the values of staff and customers, after the mismatch damaged trust even though day-to-day operations did not change.
Palihapitiya said he initiated the deal to harvest capital losses against other gains, while the new structure gives employees voting rights and narrows typical equity distribution from about 500-to-1 to 4-to-1.
Hustle, which rose with Bernie Sanders’ 2016 campaign and later worked with Jon Ossoff and Mark Kelly, said partisan trust is central in civic tech, making cross-party vendors less attractive.
The deal stands out in a tech sector marked by layoffs and weaker employee leverage, with Hassinger arguing worker ownership and labor organizing will become more relevant.
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