Zenefits takes a hit to please investors - CNET

Zenefits this week succumbed to outside pressure following its latest funding round by agreeing to cut how much the company is worth and hand over more control to investors.

As reported by Reuters, the deal will give investors like Fidelity and Insight Venture Partners a new combined stake of 25 percent (up from about 11 percent) while slashing the company's' valuation from $4.5 billion to $2 billion.

Zenefits, which makes free human resources software for businesses and acts as a health insurance broker, has seen its financial books bued this year by accusations that it didn't comply with state licensing requirements for brokers.

A company representative didn't immediately respond to a request for comment.