Stripe reaches $65bn valuation in deal to let employees cash out stock
In brief:
- Stripe will allow its employees to cash out about $1bn of stock at a valuation 30 per cent higher than last year, as the payments processing group continues to put off going public amid uncertainty in global markets.
- The valuation is up from $50bn at a funding round last March, although still down on the $95bn it was tagged with in 2021.
- In a statement, Stripe says that investors will provide most of the funds but that it will also use a portion of its own capital to offset dilution from its employee equity compensation programmes.
What does this mean?
“We’re pleased to once again offer employees an opportunity for liquidity,” said Stripe chief financial officer Steffan Tomlinson. “Our business continues to see strong momentum with the most advanced companies in the world.”
