Payments giant Stripe Inc., last valued by private investors at $95 billion, cut the internal value of its shares by 28%, people familiar with the matter said, according to the Wall Street Journal.
Stripe told employees in an email Friday that the internal share price was about $29, compared with $40 in the most previous internal valuation, known as a 409A valuation, the people said. The move lowered the implied valuation of those shares to $74 billion, according to one of the people, which is calculated separately from the stock owned by major shareholders.
The news comes days after Klarna, the Swedish BNPL company, had its valuation cut by a whopping 85% to $6.7 billion from its last round as it raised $800 million in fresh funding. Unlike Stripe, Klarna’s valuation was cut by its investors.
Asked about the company’s valuation at the Money20/20 show in Amsterdam last month, Stripe co-founder John Collison was relaxed on the topic, noting that the company had plenty of runway with cash in the bank.
Could Stripe raise again at that value, he was asked? “I don’t know, we haven’t tried. Stripe the business has grown a lot since then, but then valuations have gone down…”
Fintech companies, which at the beginning of the recent market downturn were seen as an exception of sorts because of their strong 2021 fundraising activity, have seen a reversal of fates over the past month. „Rising interest rates and fears that consumer discretionary spending will fall at the onset of a potential economic recession are likely to be especially harsh for consumer-facing fintechs like Stripe,” according to TechCrunch.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
