https://www.axios.com/2023/03/15/stripe-50-billion

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2 hours ago - Economy & Business

Payments giant Stripe raises $6.5 billion at a $50 billion valuation

Dan Primack

  * Dan Primack, author of Axios Pro Rata

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Illustration of the Stripe logo with the S as a dollar sign.

Illustration: Aida Amer/Axios

Digital payments firm Stripe on Wednesday announced that it has
raised more than $6.5 billion at a $50 billion valuation.

Why it matters: This is much more than the company had expected to
raise, albeit at a lower price.

  * All proceeds will be used to help Stripe employees cover tax
    obligations related to the pending expiration of restricted stock
    units, plus to fund a new stock tender offer for current and
    former employees.
  * No proceeds will be used to fund Stripe's own tax obligations
    tied to the RSUs.
  * The stock tender is voluntary, with employees eligible to sell as
    few or as many vested shares as they want (i.e. zero-100%).

Backstory: Stripe had considered letting employees get liquidity via
a public stock offering, but ultimately decided that the private
transaction would be faster and give the company more flexibility.

  * The company, which powers online payments for such companies as
    Amazon and Lyft, was valued a5 $95 billion by venture capitalists
    in March 2021, up from $35 billion just three months earlier.
  * Early talk was that the new round would be done at around a $60
    billion valuation.

New investors in the round included GIC, Goldman Sachs Asset and
Wealth Management and Temasek. 

  * Return backers included Andreessen Horowitz, Baillie Gifford,
    Founders Fund, General Catalyst, MSD Partners and Thrive Capital.

Go deeper: Stripe's effort to rectify past mistakes

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