Fintech giant Stripe’s valuation hits $65 billion on employee stock deal

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Payment infrastructure giant Band said today it has signed agreements with investors to provide liquidity to current and former employees through a tender offer worth $65 billion.

Notably, the valuation represents a 30% increase compared to Stripe’s valuation last March when it raised $6.5 billion in Series I funding at a valuation of $50 billion. But it also remains lower than Valuation of $95 billion reached in March 2021.

While Stripe declined to comment beyond a written declarationa source familiar with internal company events told TechCrunch that Stripe and some of its investors agreed to buy more than $1 billion worth of stock from current and former Stripe employees.

The stock sale and valuation increase aren’t entirely surprising to those who have been paying attention to what’s been happening at Stripe over the past year.

The company, which includes personalities like Alaska Airlines, Best buy, Lotus cars, Microsoft, Uber And Zara as customers, noted during its last relaunch that the the proceeds would be used to “provide liquidity to current and former employees and satisfy employee withholding obligations related to stock awards.” This, he adds, would result in Stripe shares being retired, which would offset the issuance of new shares to Series I investors.

Stripe’s IPO has been long anticipated and is expected to happen in 2024. But with this deal, it looks like an IPO may not happen until next year.

In January, TC’s Rebecca Szkutak reported that – in anticipation of this IPO and according to Caplight secondary data tracking, there had been “an absolute whirlwind buyers looking to acquire shares of the company in recent months. On Jan. 2, a secondary sale closed, valuing Stripe shares at $21.06 apiece and the startup at $53.65 billion, according to Caplight data.

Although Stripe did not name the investors participating in the latest transaction, the managing partner of Sequoia Capital Roelof Botha was quoted in the Stripe announcement and the Wall Street Journal cited Goldman Sachs‘s Growth Equity Fund is another backer.

The WSJ also reported that the transaction “is part of a commitment by the Collison brothers to provide liquidity each year to longtime and veteran employees.” Sources familiar with internal company events said the commitment is more about providing liquidity “regularly,” and not necessarily annually.

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