Payments processing start-up Stripe has secured new funding of $6.5 billion in one of the largest private stock sales in US history, but at about half of its valuation from two years ago, according to a report by the Financial Times.
Payments processing start-up Stripe has secured new funding of $6.5 billion in one of the largest private stock sales in US history, but at about half of its valuation from two years ago, according to a report by the Financial Times.
Peter Thiel’s Founders Fund, Josh Kushner’s Thrive Capital, and Andreessen Horowitz, and new backers including two Singaporean investors, state fund Temasek and sovereign wealth fund GIC, provided the San Francisco- and Dublin-based group with new capital which will be used to help employees sell their company shares and cover the taxes related to their stock compensation. But the share sale also gives Stripe a new valuation of $50bn, way below its $95 billion peak seen in 2021.
According to the FT, Stripe’s new valuation is a strong indicator that tech start-ups may now have to be prepared to accept big discounts if they want to raise new funds.
