FinTech: Stripe Shareholders Sold $1B Shares Last Month (WSJ); Company Launches ID Tool
According to the Wall Street Journal, the company ran a tender offer for existing shareholders to sell their stakes.
Major investors last month snapped up $1 billion worth of shares from existing shareholders in Stripe in a tender offer that received as much as $4 billion in bids according to the WSJ. (Silicon Republic)
The marquee investors who participated in the transaction included Shopify, Sequoia Capital, Silver Lake, and Capital Group; some raised their existing holdings further.
According to the WSJ, those employees who joined Stripe around the time the startup was founded in 2010 may have sold into the tender for fear that their stock options may expire.
Meanwhile, large funds and investors with sizable holdings in Stripe could be anticipating a huge windfall from a potential IPO by the company. According to rumors, the giant fintech could finally bite the IPO bullet in 2022.
In March, Stripe became the most valuable startup in Silicon Valley when it raised a humongous $600 million at a valuation of $95 billion. That valuation had tripled in less than a year.
New offering: Stripe Identity
Stripe launched this week a tool that will assist Internet businesses with securely verifying the identities of their clients from more than 30 different countries.
The tool is expected to curb fraud, account hijacking, and other such malpractices.
It will also help businesses ensure that they are compliant with age and KYC guidelines.
“With Stripe Identity, we’re making our advanced compliance infrastructure available to all of our users,” said Delia Pawelke, Head, Global Risk Strategy and Onboarding Policy. “For an online business, verifying someone’s identity is now as easy as accepting a payment.”
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