Payments processor firm Stripe said it had signed agreements to raise more than $6.5 billion at a valuation of $50 billion, which is about 47% lower than its 2021 valuation of $95 billion.
The company said in a press release on Wednesday that it doesn’t need the capital to run its business; rather it will use the proceeds to provide employee liquidity. “The funds raised will be used to provide liquidity to current and former employees and address employee withholding tax obligations related to equity awards, resulting in the retirement of Stripe shares that will offset the issuance of new shares to Series I investors,” according to press release.
The investors for the new round included existing Stripe shareholders Andreessen Horowitz, Baillie Gifford, Founders Fund, General Catalyst, MSD Partners and Thrive Capital, and new investors GIC, Goldman Sachs Asset and Wealth Management and Temasek, the company said in the statement.
In November, Stripe said it was cutting over 1,000 jobs, or 14% of its staff, citing macroeconomic factors such as inflation, rising energy prices and higher interest rates.
Goldman Sachs served as sole placement agent on the new funding round, and JP Morgan acted as financial advisor.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/www.coindesk.com/resizer/x7Fpg2u5-E87o7upb8Z79HEV8zQ=/arc-photo-coindesk/arc2-prod/public/3ADCOF7IRBHPPCBVLWSDPKQLKY.png)
Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets
Read more about