The valuation of payments processing platform Stripe reportedly reached $70 billion.
Sequoia Capital is offering to buy shares from investors that want to cash out, Bloomberg reported Monday (July 15), citing unnamed sources. The venture capital firm is offering $27.51 for Stripe shares and will purchase up to $861 million in shares.
Stripe is one of the most valuable private tech companies. It was valued at $65 billion following a deal that let current and former employees cash out some of their shares, the report said. The company was worth $50 billion last March, although that figure is below the $95 billion Stripe achieved in 2021.
Stripe declined to comment when reached by PYMNTS Monday afternoon.
Stripe, founded by brothers Patrick Collison and John Collison, last month said it would begin allowing employees to sell their shares. John Collison noted the company is in no rush to launch an initial public offering (IPO).
Although analysts have closely watched Stripe and other FinTech veterans, waiting to see when and how they may go public, John Collison said many firms go public too early and Stripe remains committed to developing products and opportunities to grow the business.
Stripe reported in March that it exceeded $1 trillion in total payment volume in 2023, a number that was 25% higher than the previous year, and that businesses running on Stripe made up about 1% of global gross domestic product.
“Stripe was robustly cash flow positive in 2023 and expects to be again in 2024,” the founders wrote in the company’s 2023 annual letter. “This threshold is important because it allows us to invest for the long term, building what we believe our users need 10 years from now, without regard for the natural volatility of capital markets.”
During the company’s annual user conference in April, John Collison said Stripe was initially founded to enable the acceptance of online payments but soon got requests for additional features, which he called “software-defined financial services.”
“That is what Stripe is building,” he said.
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