Stripe Cuts Internal Valuation by 28% To $74 Billion

Payments giant Stripe, last valued by private investors at $95 billion, cut the internal value of its shares by 28%, WSJ reported Thursday, citing people familiar with the matter. From the report: Stripe told employees in an email Friday that the internal share price was about $29, compared with $40 in the most previous internal valuation, known as a 409A valuation, the people said. The move lowered the implied valuation of those shares to $74 billion, according to one of the people, which is calculated separately from the stock owned by major shareholders. Stripe said in the email that the board approved the lower share price effective June 30, the people said. The payments processor to startups and fast-growing internet companies didn't explain the decision to lower its internal valuation, the people said. The decision comes amid a prolonged market selloff that has slowed down the pace of private fundraising and pushed startups to slash costs and cut jobs.

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