Stripe raises $6.5 billion at $50 billion valuation

Stripe co-founder John Collison speaking in Paris in 2016.

Jacques Demason | AFP via Getty Images

Payment processor Stripe raises $6.5 billion at a $50 billion valuation wednesday saysa steep discount to its record 2021 valuation of $95 billion.

“Stripe does not need this funding to operate its business,” the company said in a release. Cash Raised – Contributions from Andreessen Horowitz, Founders Fund, Goldman Sachsand Temasek – which will instead provide liquidity to “current and former employees” and incur tax liabilities related to equity awards.

Stripe, No. 8 on CNBC Jammer 50 Last year’s list, which has now slashed its valuation nearly in half from its peak two years ago. The company develops payment processing software for e-commerce businesses such as Amazon, Google, and Shopify.

Goldman Sachs acted as exclusive placement agent, while JPMorgan Acted as financial advisor to Stripe.

For more than a decade, Stripe has been privately held despite constant speculation about an IPO. CNBC Report In January, the company will make a decision on a public offering within the next year.

Stripe’s latest Series A funding round will not be dilutive, the company said. The company will offset the new share issuance by providing “liquidity” to current and former employees. But the company has long argued that private ownership is the best option.

“We’re very happy to be a private company,” says Stripe co-founder John Collison told CNBC 2021. At the time, Collison dismissed rumors of a possible IPO.

July, stripes cut Its internal valuation increased by 28%, from $95 billion to $74 billion. Then in January, information report Stripe again lowered its valuation to $63 billion. The drop reflects a sharp pullback in tech stocks last year, the worst year for the Nasdaq since 2008.

stripe laid off In November, 14 percent of employees in leadership positions admitted to misjudging the extent to which the Internet economy would continue to grow.

watch: ‘We’re very happy to be a private company,’ says Stripe co-founder

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