Major investor in Stripe confirms a $70 billion valuation

Payments giant Stripe has postponed its IPO for so long that its major investor, Sequoia Capital, is offering to buy up to $861 million worth of shares from limited partners (LPs) in funds raised between 2009 and 2011. The move reflects increasing LP impatience for liquidity in a slow IPO market, with only four venture-backed tech IPOs in 2024 so far.

Despite this, Sequoia remains optimistic about Stripe's future, highlighting Stripe's resilience and growth. Stripe, once valued at $95 billion, opted for private market transactions instead of an IPO, even as its valuation fluctuated. Sequoia's total investment in Stripe is now valued at $9.8 billion, based on Stripe's recent 409A valuation of $70 billion.

With a recent tender offer and Sequoia's buyback plan, it seems Stripe is not planning an IPO soon. Stripe continues to grow impressively, having crossed $1 trillion in total payment volume in 2023, and remains cash flow positive. This strong financial position reduces its urgency to raise capital, allowing it to find alternative ways for employees and investors to sell shares.

Source: TechCrunch