Scott Griffiths’ Post

Sequoia Capital just finalized an $861 million deal purchasing Stripe shares, showcasing LPs' thirst for liquidity and setting a potential precedent for venture capital firms managing long-term investments. 💼 Sequoia's $861M purchase reflects how liquidity demands from Limited Partners (LPs) are shaping big transactions. 📉 Stripe valued at $70B: Shares sold at $27.51, based on the company's most recent valuation. 🔄 LP flexibility: Some cashed out fully, others partially, and some reinvested in newer Sequoia funds. 🚀 No direct benefit for Stripe: The deal doesn’t provide Stripe with any proceeds but reinforces Sequoia's long-term faith in the payments giant. #VentureCapital #FinTech #Investing 💡 Model for future VC transactions: This deal might inspire other VCs on how to manage older portfolio companies. 🌐 Stripe's future growth: Sequoia remains highly optimistic about Stripe's ability to compound growth for years to come. https://lnkd.in/gfB_FVj5

How much is Stripe worth in 2024? According to Sequoia Capital, willing to buy shares from current investors, approximately $70 billion #Sequoia Capital is offering to buy up to $861 million worth of shares in Stripe, as confirmed by Axios. This move is particularly noteworthy in today's challenging IPO market, where only four venture-backed tech companies have gone public so far in 2024. Stripe, co-founded by brothers Patrick Collison and John Collison, has been a standout in the #fintech space since its inception. Sequoia's confidence in #Stripe's future is underscored by the firm's letter to limited partners, expressing strong optimism about Stripe's durability across economic cycles. Despite Stripe's valuation peaking at $95 billion in March 2021 and subsequently dropping to $50 billion in 2023, the company has rebounded with a recent 409A valuation of $70 billion. This reflects the ongoing trust in Stripe's growth potential and financial health. Sequoia, which has invested a total of $517 million in Stripe since 2011, is now facilitating liquidity for its LPs through this share buyback. This strategic maneuver suggests that Stripe is not in immediate plans to go public, a sentiment echoed by the presence of Sequoia partners Luciana Lixandru and Kevin Kelly on Stripe's board, who have intimate knowledge of the company's financial strategies. Stripe continues to perform robustly, having crossed the $1 trillion total payment volume mark in 2023 and remaining cash flow positive. This stability, combined with Sequoia's substantial position valued at $9.8 billion, indicates a strong future ahead for Stripe. The article on TechCrunch in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://lnkd.in/d4h8zqKA  - Substack: https://lnkd.in/dzfGJzmW

Stripe, which was valued at $65 billion in February, has raised $694.2 million via a stock sale, the fintech giant said in a regulatory filing with the US SEC. Stripe said on Friday it had raised $694.2 million in a stock sale first announced in February. The deal marks a rare bright spot in an otherwise subdued venture capital market, as investors spooked by high-interest rates have been cautious despite expectations of a soft landing for the economy. Global venture capital investments fell to a near five-year low in the first three months of 2024, according to data from PitchBook. Investors have been keenly waiting for years for Stripe's initial public offering. The company, however, signed a deal in February to allow employees to cash out some of their stock. Analysts have said the agreement could potentially delay plans for an IPO and allow the company to work on further improving its finances, so that it commands a higher valuation when it goes public. Read more: https://lnkd.in/eAdjUAwQ Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] Get the most important FinTech news and analysis in a 5 minute daily briefing you’ll actually look forward to reading. Sign up now: https://lnkd.in/eiQBxdTW

Very interesting move by Stripe and a reminder that there are creative options besides just IPO or M&A for monetization. The secondary private market continues to evolve as another option to provide liquidity for employees and founders. This move by Stripe gives the company a longer lifeline to operate as a private company. This article is also a reminder to always understand the needs of your investors and how they make money. It sounds simple, but understanding their fund capital structure will make sure you are aligned on when they'll be looking for an exit. As the article mentions, few VC-backed companies may have this luxury, but it is an option, along with private company buybacks, for companies with significant cash flow. Invisible, provider of Tech-enabled professional services, is an interesting example of a company doing private buybacks to keep it private/partner owned. #capitalmarkets #privatemarkets #venturecaptial #privatesecondary #buyback #startups #ipo #iporeadiness

Fintech giant Stripe raised $694 million in funds via a stocks sale. #Stripe has announced a significant leap forward in its financial journey. The #fintech giant was valued at a staggering $65 billion in February, the company has just raised a jaw-dropping $694.2 million through a stock sale, as revealed in a recent filing with the U.S. Securities and Exchange Commission (SEC). Amidst a backdrop of cautious investment sentiments due to rising interest rates, this move by Stripe shines as a beacon of optimism. With global #VC investments hitting a near five-year low in the first quarter of 2024, this injection of capital bucks the trend and signals confidence in the fintech giant's trajectory. For years, investors have eagerly awaited Stripe's initial public offering (#IPO). However, February saw a pivot as the company struck a deal allowing employees to cash out some of their stock. While this move could potentially delay IPO plans, it also presents an opportunity for Stripe to fortify its financial standing, potentially leading to a higher valuation upon going public. Co-founders John Collison and Patrick Collison have underscored Stripe's financial prowess, noting robust cash flow positivity in 2023 with expectations for the same in 2024. This resilience is mirrored in Stripe's clientele, boasting high-profile partnerships with the likes of Musk's X, Amazon, Hertz Global, and Instacart. At its peak, Stripe commanded a valuation of $95 billion in 2021, placing it among the crème de la crème of US startups alongside titans like SpaceX and OpenAI. Even at its current valuation of $65 billion, Stripe stands tall as a testament to innovation and resilience in the fintech landscape. The article on #RTE in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

🚀 𝐒𝐧𝐚𝐩𝐬𝐡𝐨𝐭 𝐨𝐟 𝐒𝐭𝐫𝐢𝐩𝐞'𝐬 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐉𝐨𝐮𝐫𝐧𝐞𝐲: 🔷 January prices soaring to $30 a share reflect a significant surge in demand. 🔷 Comparing to Jan. 18, 2023, when Stripe traded at $22 (approx. $55 billion valuation) and Jan. 28, 2024, with an average of $28 (nearly $70 billion valuation). 🔷 Despite the increase, it's below the 2021 peak of $95 billion; a down round in 2023 raised $6.5 billion at a $50 billion valuation. 💹 𝐒𝐞𝐜𝐨𝐧𝐝𝐚𝐫𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐁𝐮𝐳𝐳: 🔷 January's secondary market activity surpassing all of Q4 2023 signals heightened investor interest. 🔷 Unusual rapid demand prompts speculation about potential events: fundraise, tender offer, acquisition, or an awaited IPO. #SiliconValley #VentureCapital #Stripe #FinTech #VCinsights #TechValuations #StockMarketInsights #secondarymarket #IPO https://lnkd.in/d9ZJn3-S

Sequoia Capital has approached investors with an offer to buy shares in Stripe at a $70 billion valuation https://lnkd.in/epph2hrU This is after Stripe’s valuation has oscillated quite a bit (along with that of other fintechs) over the last 4 years peaking at $95 billion in 2021 before Covid, dipping to $50 billion in March 2023 and climbing to $65 billion in February 2024. Interestingly Stripe’s total volume processed and revenues continue to increase steadily across this period with $640 billion in payment volumes in 2021, increasing to $817 billion in 2022, and surpassing the $1 trillion mark in 2023. https://lnkd.in/ej57uXNW Revenues are estimated to have increased from $12 billion in 2021 t0 $14 billion in 2022, and an estimated $16 billion in 2023. The $70 billion valuation at an implied revenue multiple of 4.4x is substantially lower than the circa 8x revenue valuations in 2021 and the average 6.5x revenue valuations of payment fin techs in general and the 20x valuation of publicly listed competitor Adyen. https://lnkd.in/e-AwMXGg

Stripe will never go public...Gotcha, see, now you’re reading. 'I actually don’t know if Stripe will go public in 2024 or not, but it certainly seems like everyone under the Silicon Valley sun is hoping that a Stripe IPO is imminent. But for now, investors have to settle for the secondary markets—where recently the sprawling fintech company’s shares have been soaring.' #stripe #ecommerce #onlinepayments #fintech #venturecapital #preipo #tsginvest

💳 Stripe Maintains $70B Valuation in Latest Share Buyback Stripe is once again buying back some of its shares at a valuation of $70 billion, according to industry reports. 🔑 Details: The expected price per share is $27.51, matching the valuation of a similar share sale earlier this year. This move aligns with Stripe's broader strategy to balance its shareholder structure while maintaining its market valuation...IPO soon🤔 #Fintech #Stripe #InvestmentNews #TechValuations

Coming off the news of Stripe’s partnership with Coinbase, Sequoia Capital, arguably the most accomplished venture capital firm of all time and one of Stripe’s longest-standing backers, is stepping up in an unusual move to purchase approximately $1 billion more of Stripe’s privately held stock. This is a testament to Sequoia’s (and our) strong conviction that Stripe is indeed a generational asset with many more years of promise ahead. For those new to this, it’s rare to see early investors who have accumulated so much position volume already, leaning in for substantially more, especially via secondaries. Of course, the offer that is being reported by the news is exclusively for existing investment firms who have expiring legacy funds that have Stripe stock, as they will need to provide their own limited partners with liquidity soon. Outside of this unique push, the secondary market is materially higher with a long line of investors hoping to get any exposure. Of course, congratulations to all involved with us here. It’s been a successful summer for us. Sequoia is very bullish, and I invite you to click the link below to read this article from TechCrunch. https://lnkd.in/e9hU_aDA Brahmin Partners #VentureCapital #TechInvesting #Fintech #Stripe #SequoiaCapital #SecondaryMarket #InvestmentNews #TechCrunch #StartupInvesting #PrivateEquity