According to a report by Bloomberg and Information, Fintech Startup Stripe is in talks to promote employee stock sales at a $85 billion valuation. The move will help Silicon Valley payment startups recover some of the value they lost after the post-Covid slump.
The company is looking to promote the sale of its employees’ shares and value its stripes of about $85 billion. This will give employees and early investors the opportunity to cash out while tweaking the company’s valuation near its $95 billion peak in 2021.
“Stripe Inc. is being debated to arrange for employee sales of stock at a $85 billion valuation. Those familiar with the issue say that Silicon Valley payment startups will be in the post-Covid slump It’s a transaction that will help you regain some of the capitals you lost in. Bloomberg reported.
If the transaction passes, it could potentially increase Stripe’s valuation by $15 billion from a similar $70 billion tender offer last year. Still, it’s below the $95 billion tally that Stripe reached during the 2021 Tech Boom, when it last raised funds.
The information is still resolved and conditions may change, the source said it requested anonymity as the information is private. Stripe declined to comment. Information was first reported on the transaction.
The news comes less than a month after Stripe fired 300 employees or about 3.5% of its workforce, with the majority of the cuts being played by key divisions, including product, engineering and operations. affects. However, Stripe does not brake when it was adopted. The company aims to increase its workforce to 10,000 by the end of the year, from 8,500 in January.
This potential transaction continues the trend in Stripe’s stock buybacks, secondary market transactions and financing efforts. A 15-year-old company can delay IPOs while providing liquidity to stakeholders.
Other fintech companies like Plaid are considering similar secondary stock sales to provide liquidity to employees and investors.
Stripe’s valuation fell from a $95 billion peak in 2021 to $50 billion in 2023 before falling to $70 billion later that year as part of its secondary stock sales.
Stripe has also been active in strategic acquisitions, agreeing to acquire Crypto Startup Bridge Network for $1.1 billion in October. Bridge Network’s technology aims to simplify business transactions using digital currency.
Founded in 2010 by Irish brothers Patrick and John Collison, Stripe has grown into a major player in the financial technology sector. Investors have long speculated about potential IPOs, but the company says it is not in a hurry to be consistently public. Meanwhile, the company’s total payment volume exceeded $1 trillion in 2023, reflecting its lasting strength in the payment sector.
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