/payments

News and resources on payments systems, innovations and initiatives worldwide.

Stripe cuts internal valuation again - report

Stripe has cut its internal valuation for the third time since last summer, reducing it by another 11% to $63 billion, according to tech site The Information.

  0 Be the first to comment

Stripe cuts internal valuation again - report

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

In July, Stripe slashed its valuation by 28%, wiping $21 billion off the $95 billion valuation determined by investors at a March 2021 funding round. This was followed by another cut in October.

The new price - known as a 409a valuation - means a 40% reduction in the internal valuation over the last six months, says The Information.

This is distinct from the valaution attached to the company by external investors and  can help employees realise the cost of their equity in the company.

Online payment firm Checkout.com took a similar course of action last month, adjusting its internal valuation to $11 billion - from an investor-determined $40 billion - efeectively lowering the price at which staff can exercise their stock options, from $252 a share to $65 a share under the new internal tax valuation.

In November, Stripe took the axe to its workforce, laying off more than 1100 - 14% - of its staffers as CEO Patrick Collison warned of "the beginning of a different economic climate".

At the time, Collison insisted that Strip is "fundamentally well-positioned to weather harsh circumstances" but needs to match investments with the new economic realities.

Sponsored [Webinar] Global Workforce Payments: Mastering a world of complexity

Related Company

Comments: (0)

[On-Demand Webinar] Exploring the ethics of AI in bankingFinextra Promoted[On-Demand Webinar] Exploring the ethics of AI in banking