- Stripe announced it raised $6.5 billion in a $50 billion round of funding. These are the details.
Payment processing company Stripe announced it raised $6.5 billion in funding at a $50 billion valuation. This is down from the $95 billion valuation that the company raised back in 2021. The primary investors include existing Stripe shareholders Andreessen Horowitz, Baillie Gifford, Founders Fund, General Catalyst, MSD Partners, and Thrive Capital — as well as new investors including GIC, Goldman Sachs Asset and Wealth Management, and Temasek.
The funds will be used for providing 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. And Stripe does not need this capital to run its business.
Stripe is reportedly mulling over going public within the next year. The company laid off about 14% of its workforce in November.
KEY QUOTE:
“Over the last 12 years, current and former Stripes have helped build foundational economic infrastructure for millions of businesses around the world, and this transaction gives them the opportunity to access the value they’ve helped create. But the internet economy is still young, and the opportunities of the next 12 years will dwarf those of the recent past. There’s so much to discover and to create. For us, it’s now back to work.”
- John Collison, cofounder and president of Stripe
