The payment infrastructure giant Film said today it has signed deals with investors to provide liquidity to current and former employees through an auction at a $65 billion valuation.
Specifically, the valuation represents a 30% increase compared to Stripe’s valuation last March when raised $6.5 billion in Series I funding at a valuation of $50 billion. But it is also lower than $95 billion valuation achieved in March 2021.
While Stripe declined to comment further written statementa source familiar with internal goings-on at the company told TechCrunch that Stripe and some of its investors have agreed to buy more than $1 billion in stock from current and former Stripe employees.
The company that counts the like Alaska Airlines, Better buy, Lotus Cars, Microsoft, Uber and Zara as customers, had noted at the time of the last increase that the The proceeds will be used to “provide liquidity to current and former employees and address employee withholding tax obligations related to stock awards.” This, he added, would result in a retirement of Stripe shares that would offset the issuance of new shares to Series I investors.
A Stripe IPO has been long overdue and widely expected to happen in 2024. But with this deal, it looks like an initial public offering might not happen until next year.
In January, TC’s Rebecca Szkutak reported that — in anticipation of this IPO, and according to secondary data tracker Caplight — there had been “an absolute riot buyers looking to acquire shares in the company in recent months.” On Jan. 2, it closed a secondary sale that valued Stripe shares at $21.06 apiece and valued the startup at $53.65 billion, according to Caplight data.
While Stripe did not name the investors involved in the latest deal, Sequoia Capital Managing Partner Roelof Botha commented on Stripe’s announcement and The Wall Street Journal cites Goldman Sachsof equity development as another promoter.
The WSJ also reported that the transaction “is part of a commitment by the Collison brothers to provide liquidity annually to long-time and former employees.” Sources familiar with the company’s internal goings-on said the commitment is more to provide liquidity “regularly” and not necessarily annually.
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