Stripe has set a 12-month deadline to decide whether to go public or let employees sell their stock
In Brief:
- The company has hired Goldman Sachs and JPMorgan to advise on a deal that would either see it list directly or let staffers sell shares via a secondary transaction
- Earlier this month, Stripe cut its internal valuation for the third time since last summer, reducing it by another 11% to $63 billion, down from $95 billion at a March 2021 funding round
- The firm has scheduled an all-hands meeting for Friday to discuss the situation
What does this mean?
Some of Stripe’s long-time staffers hold restricted stock that is due to expire. This means Stripe may look to IPO in order to avoid the expiration of this stock, an approach many firms are avoiding in the current climate. There is still however a significant chance that Stripe will go the private route.
