Stripe's valuation soars to $65B in employee stock sale

Stripe, the payments infrastructure company, recently announced a financial move that's set to benefit its current and former employees in a big way.

• Valuation Leap: Stripe's valuation has soared to $65B, marking a 30% increment from its last valuation of $50B in March during a Series I funding round. This uptick, however, trails behind its peak $95B valuation in March 2021.

• Liquidity through Tender Offer: A tender offer initiated by Stripe will provide liquidity to its employees, thanks to agreements with investors to buy over $1B worth of shares from current and former personnel.

• Impressive Clientele: Stripe's services are utilized by a diverse range of leading companies including Alaska Airlines, Best Buy, Lotus Cars, Microsoft, Uber, and Zara, underscoring its integral role in the digital payments sphere.

• Funding Utilization: The capital raised from its last funding round was aimed at offering liquidity to employees and managing tax obligations related to equity awards, simultaneously balancing the issuance of new shares with the retirement of existing ones.

• Anticipated IPO: Market watchers have been eagerly anticipating Stripe's IPO, expected potentially in 2024. However, this recent financial move suggests a delay, with indications that the IPO might push further into the future.

• Market Interest: Despite the delay, interest in Stripe shares remains high, with a secondary sale in January valuing the company at $53.65 billion. This demand highlights the strong market anticipation for Stripe's public offering.

Patrick Collison and John Collison, founders of Stripe, are committed to regularly providing liquidity to longstanding and former employees, emphasizing their dedication to the well-being of their workforce.