Fintech giant Stripe's valuation jumps to $65 billion due to a deal to sell shares to employees

By: Nastya Bobkova | 29.02.2024, 16:08
Fintech giant Stripe's valuation jumps to $65 billion due to a deal to sell shares to employees

The company successfully negotiated with investors to provide cash opportunities for its current and former employees through a tender offer.

Here's What We Know

Stripe is a financial technology company that provides online payment services for businesses. They offer solutions for accepting payments online, including credit cards, debit cards, and other electronic payment systems. Stripe also provides tools for building and managing payment systems, as well as financial and reporting management. They enable businesses to process payments online easily and securely.

This valuation marks a significant increase from last year, when Stripe gained attention by raising $6.5 billion in Series I funding at a $50 billion valuation. Although this is down from the record $95 billion reached in March 2021.

While details of the deal remain confidential, Stripe and its investors have purchased more than $1 billion worth of shares. These funds will be used to provide liquidity to employees and tax the rewards created.

Many people were expecting Stripe to go public in 2024, but this deal could delay that process until next year. Investors have shown a lot of interest in the company's shares, which indicates their general demand. An IPO (Initial Public Offering) is the first public offering of a company's shares on the stock market. When a company conducts an IPO, it issues shares for sale to a wide range of investors. This allows the company to raise new funds for the development of its business. In addition, it gives investors the opportunity to own a stake in the company and trade its shares on the open market.

The deal includes Sequoia Capital's managing partner Rulof Bot and Goldman Sachs equity growth fund among the sponsors. The company's founders, the Collison brothers, have also committed to regularly giving their employees the opportunity to sell their shares.