Stripe nears $85B valuation in employee share sale, approaching 2021 peak

Fintech startup Stripe is in talks to facilitate sales of employee shares at an $85 billion valuation, according to reports from Bloomberg and The Information. This move could help the Silicon Valley payments startup recover some of the value it lost after the post-Covid downturn.

The company is looking to facilitate the sale of employee-held shares, valuing Stripe at around $85 billion. This would give employees and early investors a chance to cash out while nudging the company’s valuation closer to its 2021 peak of $95 billion.

“Stripe Inc. is in discussions to arrange sales of stock by employees at an $85 billion valuation, people familiar with the matter said, a deal that could help the Silicon Valley payments startup regain some of the capitalization it lost during a post-Covid slump,” Bloomberg reported.

If the deal goes through, it could boost Stripe’s valuation by $15 billion from last year’s $70 billion in a similar tender offer. Still, it would remain below its $95 billion high, reached during the 2021 tech boom when Stripe last raised funds.

The deal is still being worked out, and terms might shift, said the sources, who requested anonymity because the information is private. Stripe declined to comment. The Information was the first to report on the deal.

The news comes less than a month after Stripe laid off 300 employees, or about 3.5% of its workforce, with the majority of the cuts affecting roles in key departments including product, engineering, and operations. However, Stripe hasn’t hit the brakes on hiring. The company aims to grow its workforce to 10,000 by year’s end, up from 8,500 in January.

This possible transaction continues Stripe’s trend of stock buybacks, secondary market trades, and financing efforts. It allows the 15-year-old company to delay an IPO while still offering liquidity to its stakeholders.

Other fintech companies like Plaid are also looking into similar secondary share sales to provide liquidity for employees and investors.

Stripe’s valuation has seen significant fluctuations, dropping from a $95 billion peak in 2021 to $50 billion in 2023, before recovering to $70 billion later that year as part of a secondary share sale.

Stripe has also been active in strategic acquisitions, agreeing in October to acquire crypto startup Bridge Network for $1.1 billion. Bridge Network’s technology aims to simplify transactions for businesses using digital currencies.

Founded in 2010 by Irish brothers Patrick and John Collison, Stripe has grown into a major player in the financial tech sector. Investors have long speculated about a potential IPO, but the company has consistently stated it isn’t in a hurry to go public. Meanwhile, the company’s total payment volume surpassed $1 trillion in 2023, reflecting its enduring strength in the payments space.