Payment processor Stripe raises $6.5 billion at $50 billion valuation said on wednesdaya significant discount from its 2021 record valuation of $95 billion.
“Stripe does not require this capital to operate its business,” the company said in a press release. Fundraising — Andreessen Horowitz, Founders Fund, goldman sachsand Temasek — in return, provide liquidity to “current and former employees” and bear tax liability related to stock awards.
Stripe, which ranked number eight on CNBC’s Disruptor 50 list last year, has now nearly halved its valuation from its peak two years ago. The company builds payment processing software for e-commerce businesses such as Amazon, Google and Shopify.
Goldman Sachs acted as sole placement agent, JP Morgan Served as Stripe’s financial advisor.
Stripe has remained private for more than a decade, despite frequent IPO speculation. CNBC reported in January that the company would make a decision to go public within the next year.
According to the company, Stripe’s latest Series I round will be undiluted. By providing “liquidity” to current and former employees, the company offsets the round’s new share issuance. But the company has long argued that private ownership is best.
In 2021, Stripe co-founder John Collison told CNBC, “We are very happy as a private company. At the time, Collison denied rumors of a potential IPO. bottom.
july stripes cut Internal valuation increased 28% from $95 billion to $74 billion. Then in January reported information That Stripe again lowered its valuation to $63 billion. The decline reflects the dramatic drop in technology stocks last year, which was the Nasdaq’s worst year since 2008.
Stripe laid off 14% of its employees in November. This is because management admitted that they made the wrong decision about how much the Internet economy will continue to grow.
clock: Stripe co-founder says ‘we are very happy as a private company’