FinTech: Stripe Evaluating Alternatives To Enable Employees To Cash In Soon-To-Expire Options

January 27, 2023 | FinTech, Latest News, News

Stripe has hired Wall Street banks Goldman Sachs and JP Morgan to explore a public listing and other alternatives.

Payment startup Stripe plans to go public next year, according to a Thursday report by The Information. Despite being valued at $95 billion in 2021 and being one of the most highly-anticipated IPOs of 2023, Stripe co-founder John Collison had previously stated that there were no immediate plans for a public offering. This may now change as the company faces the issue of 10-year stock units awarded to veteran employees that are set to expire at the end of this year.

One option is for stockholders to sell shares on the secondary markets. However, with investor interest in companies over 10 years old declining in 2020, that is perhaps not the best course of action for Stripe, which has remained private for 13 years.

The other solution, is to go public, as it has raised around $2.2 billion since its founding in 2010.

Reuters reported Thursday that Stripe hired Wall Street banks Goldman Sachs (NYSE: GS) and JP Morgan (NYSE: JPM) to evaluate a public listing as well as alternatives that would allow employees to cash out stakes in the private company, two sources familiar with the matter told Reuters.

Employees would therefore have the option to sell shares either to private investors or in to a public market.

Separately, the Wall Street Journal said Thursday that Stripe had approached investors about raising at least $2 billion in fresh cash at a valuation of $55 billion to $60 billion, quoting people familiar with the matter.

The company previously raised funds in early 2021 at a valuation of $95 billion.

Related Story:  Stripe Lays Off 14% Of Employees As It Faces “A Different Economic Climate,” And “Leaner Times”

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: Ledger, Maker Of Crypto Security Hardware, Raises Nearly All Of $100M Series C Round
March 31, 2023     Digital Assets, News, Venture Capital

Paris-based startup Ledger, which makes hardware wallets for cryptocurrency investors, has raised €100m ($109m) in funding, valuing the company at €1.3bn. The round was led by investors including Digital Finance…
FinTech: Cogo And Eliq Partner To Help Banking Customers Enhance The Energy Efficiency Of Their Homes
March 31, 2023     ESG and Sustainability, FinTech, News

Cogo, a fintech which collaborates with banks to assist customers in decreasing their carbon footprint as a carbon footprint management firm, is partnering with Eliq, a company that specializes in…
Venture Capital: The LSP Dementia Fund Closes €260M (US$283M) To Address Dementia, One Of The Most Significant Health Crises Of Our Era
March 31, 2023     Latest News, News, Venture Capital

The LSP Dementia Fund has reached a final close at €260 million (US$ 283 million), surpassing its initial target of €100 million. The fund, which is managed by EQT Life…
Artificial Intelligence: The DAGGER AI Model Gives Advance Warning Of Dangerous Solar Storms
March 31, 2023     Artificial Intelligence, News

Researchers have developed an AI-based model that combines satellite data and machine learning to predict where an impending solar storm will strike on Earth, offering 30 minutes of advance warning….