Privately held fintech and payments/payments orchestration giant Stripe let it be known to employees on Friday that its board approved a new independent 409A, internal valuation that reduced its stock price from $40 to $29, roughly a 27.5% reduction in value. One of the world’s most well known and largest privately held fintechs last raised $600M in March 2021 at a venture-funded valuation of $95B. The reduction in internal stock price itself comes as no surprise given the current market conditions and macro-economic environment. However, what makes the new 409A This Week’s Most Interesting news is that the procedure is commonly used for employee retention and procurement. In comparison to much of today’s news of significant layoffs in newer startups resulting from precipitous drops in fintech valuations, Stripe, though technically still a fintech startup, is likely lowering its internal valuation to protect its employees and arm itself with valuable consideration to attract new hires.
TWMI – Fintech & Payments Giant Stripe Lowers Valuation – For the Right Reasons
