Stripe, the digital payments giant founded by John and Patrick Collison, reportedly lowered its internal rating by 28 percent.
The fintech, which counts the Irish state among its investors, told employees in an email last week that its internal share price had been raised from $40 to $29, according to a Wall Street Journal report.
That would bring the company’s implied value to $74 billion, a big drop from a notional $95 billion that private investors put up after a funding round last year.
The company declined to comment on the report.
But even that steep decline would be significantly smaller than the big falls in publicly traded tech stocks this year. Competitor Paypal, for example, has fallen 64 percent in the year to date.
While a change in internal valuation isn’t necessarily indicative of the company’s strength, the company’s valuation is closely watched as Stripe has long been rumored to be preparing for an IPO. A listing could potentially bring significant benefits to its shareholders, including Ireland Strategic Investment Fund, which put €42m into the deal in 2021.
Stripe last year retained law firm Cleary Gottlieb Steen & Hamilton as advisors to help prepare for its early-stage IPO.
The company is reportedly considering a direct listing rather than an IPO, meaning the company would not raise fresh capital as part of the transaction, although the company has not publicly announced its plans.
A direct listing, however, would protect shareholders – most notably the founders, the Limerick-Collison brothers – from having to dilute their ownership interests.
However, the Collisons have repeatedly downplayed the prospect of taking the company public, citing Stripe’s low capital intensity and ease in securing lines of private financing.
Stripe said in March 2021 it would create “at least” 1,000 jobs in Dublin by 2026 after Ireland Strategic Investment Fund (Isif) made its equity investment in the company.
The online payments company became Silicon Valley’s most valuable private technology company of all time following this funding round.
Stripe currently employs over 300 people at its technical center in Dublin, which also serves as the company’s international headquarters.
Stripe processes payments in 42 countries and counts the likes of Deliveroo, N26, Intercom and Donedeal among its thousands of customers.
According to Forbes estimates, Patrick and John Collison have a combined net worth of €16 billion – almost double the wealth of the other four Irish billionaires combined.
Last year John Collison bought the Abbey Leix estate in County Laois, one of Ireland’s largest and most prestigious estates.
https://www.independent.ie/business/stripe-reportedly-cuts-valuation-amid-tech-share-crash-41840832.html Stripe is reportedly cutting the rating amid the tech stock’s plunge