Stripe raises $6.5 billion at a sharply reduced $50 billion valuation

Stripe co-founder John Collison gives a speech in Paris in 2016.

Jacques Demarthon | AFP via Getty Images

Payments processor Stripe has raised $6.5 billion at a $50 billion valuation, the company said wednesdaya steep discount to its record valuation of $95 billion in 2021.

“Stripe does not need this capital to operate its business,” the company said in a press release. Fundraising – with contributions from Andreessen Horowitz, Founders Fund, Goldman Sachsand Temasek — will instead go toward providing cash to “current and former employees” and the tax liabilities associated with stock awards.

Stripe, which ranked eighth on CNBC’s Disruptor 50 list last year, has now cut its valuation nearly in half from its peak two years ago. The company creates payment processing software for e-commerce businesses such as Amazon, Google, and Shopify.

Goldman Sachs was the sole placement agent, while JP Morgan was Stripe’s financial advisor.

Stripe has remained privately owned for over a decade, despite frequent speculation of an IPO. CNBC reported in January that the company would make a decision on a public offering within the next year.

Stripe’s final Series I round will be non-dilutive, the company said. By providing “liquidity” to current and former employees, the company will offset the issuance of the new round shares. But the company has long maintained that private ownership is optimal.

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

In July, Stripe cut its internal valuation by 28%, from $95 billion to $74 billion. Then in January, The information reported that Stripe again lowered its valuation to $63 billion. The reduction mirrors the dramatic decline in tech stocks last year, which was the worst year for the Nasdaq since 2008.

Stripe laid off 14% of its workforce in November after management admitted it misjudged the growth of the internet economy.

SHOW: Stripe co-founder says, “We’re very happy as a private company”

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