Stripe is allowing its employees to cash out more stock as the fintech giant continues to put off an initial public offering. Fintech giant’s employees will get a chance to cash out over $1 billion of stock.
Stripe, a financial infrastructure platform for businesses, has signed agreements with investors to provide liquidity to current and former Stripe employees through a tender offer at a $65B (€60B) valuation, according to the press release. The valuation is up from $50 billion at a funding round last March, although still down on the $95 billion it was tagged with in 2021.
„While the majority of funds for the tender offer are being provided by investors, Stripe will also use a portion of its own capital to repurchase shares to offset dilution from the Company’s employee equity compensation programs.” the company explains.
Under the deal, Stripe and some of its investors – including Sequoia Capital – will buy more than $1 billion of stock from current and former staffers, according to the Wall Street Journal. The agreement could see Stripe’s long-touted initial public offering pushed back until at least 2025, says the WSJ.
“We’re pleased to once again offer employees an opportunity for liquidity,” said Steffan Tomlinson – chief financial officer of Stripe. “Our business continues to see strong momentum with the most advanced companies in the world, from newly formed startups to sophisticated enterprises like Alaska Airlines, Best Buy, Lotus Cars, Microsoft, Uber, and Zara who turn to Stripe’s platform to power their financial infrastructure.”
“When we first partnered with Stripe in 2010, it was a scrappy payments innovator. More than a decade later, Stripe has evolved beyond payments to set a new standard for financial infrastructure—driving significant revenue growth for its users,” said Roelof Botha – managing partner at Sequoia Capital. “The company’s attention to the most minuscule details delivers outsized results.”
Businesses usually have to fight tooth and nail to increase their revenue by even a few percentage points. Stripe’s optimized checkout suite, launched in 2023, includes more than 100 optimizations, such as pre-built payment UIs and one-click checkout, that drive conversion. Stripe research found that businesses that migrated from an older Stripe integration to the optimized checkout suite saw a 10.5% increase in revenue.
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