Stripe cuts internal valuation by 11%, implying a valuation of $63 billion: the information

Stripe cuts internal valuation by 11%, implying a valuation of $63 billion: the information

Stripe has cut the internal value of its shares by 11%, implying a valuation of $63 billion, according to a person familiar with the matter. It’s at least the third time since June that the payments startup has cut its internal valuation, following a minor cut in October, bringing the total drawdown to around 40% over the past six months.

The lower internal price, known as a 409a valuation, lowers the price of new stock-based compensation issued to employees and could also help Stripe reset investor expectations ahead of any public listing. The new valuation is also 33% lower than the $95 billion level at which investors including Sequoia Capital, Baillie Gifford and Fidelity valued Stripe when it last raised money, in March 2021.

Leave a Comment

Your email address will not be published. Required fields are marked *