Fintech giant Stripe valued at $65 bln in stock-sale deal for employees
Technology
Fintech giant Stripe valued at $65 bln in stock-sale deal for employees
(Reuters) - Stripe's valuation surged to $65 billion in a deal that will allow some of its employees to cash out their stock in the company, the payments service provider said on Wednesday.
The so-called "tender offer" could allow Stripe more flexibility with its plans to file for an initial public offering (IPO), which investors and analysts have been anticipating for years.
Stock-based payouts typically comprise a big chunk of the compensation for startup employees, who have no way of converting their shares into cash unless their employer files for an IPO, raises funds in a private round or buys back their shares.
Stripe and some of its investors have agreed to buy some shares of current and former Stripe employees, the company said.
It did not disclose the names of the investors participating in the round. But the Wall Street Journal, which first reported the deal, said Sequoia Capital and Goldman Sachs's growth equity fund were involved.
Stripe declined to comment beyond its statement.
The company was valued at $50 billion in its last funding round in 2023 where it raised $6.5 billion. It had then said that it did not need the capital to run its business but would use it to cover a tax bill and to provide liquidity to employees.
