According to those who know the situation, Stripe, a payment startup that is one of Silicon Valley’s most valuable privately held tech companies, has given an internal valuation as another sign of stock market volatility. % Reduced. Economic uncertainty is affecting private sector.
Investors valued Stripe at $ 95 billion last year. The new internal stock price, which does not affect the value of shares owned by outside investors, amounts to $ 74 billion, according to a person who spoke on condition of anonymity because the information is private.
The Wall Street Journal first time We reported on the news that Stripe lowered its internal rating.
The share of tech companies such as Meta, Netflix and Coinbase began to decline this spring as inflation and rising interest rates created uncertainty in their ability to continue to grow as fast as ever. With the sale, private start-ups are now assessing whether the soaring valuations of the last two years will be maintained. Instacart, a grocery delivery startup, lowered its March internal valuation from $ 39 billion to $ 24 billion by 38%.
In recent months, venture capital investors have warned and cautioned about the upcoming recession, instructing businesses to cut costs and freeze employment. Funding for start-ups in the United States has fallen 23% from a year ago, the largest drop since 2019, according to PitchBook, which tracks start-ups. Nearly 350 technology start-ups around the world have cut 53,000 workers this year, according to the company. Layoffs.fyiTrack startup layoffs.
Some start-ups are forced to raise capital with a lower valuation. This week, Sweden-based “postpay” startup Klarna Bank said publication Raised in a funding round and was worth $ 6.7 billion. Investors valued $ 45 billion last June.
Other start-ups are preemptively downgrading as a way to attract employees. Start-ups reward workers with shares that are promised value in an initial public offering or acquisition. But if the job seeker thinks the stock is overvalued, it’s not a very attractive offer.
Stripe was founded in 2010 by entrepreneurs and brothers John and Patrick Collison. The software allows businesses to process payments online. The company started selling to small start-ups, expanded to large companies, Net income of $ 2.5 billion Last year, according to Forbes. According to PitchBook, it employs more than 8,000 people.
The company has been nominated as a candidate for publication for many years. However, the IPO market was terrible this year. Start-up sales and public debuts fell 88% to $ 49 billion in the first half of this year compared to the same period last year.