Fintech
Stripe will allow employees to cash out shares for the third time
Band plans to allow employees to cash out some of their shares, as it has done twice before.
John CollisonStripe co-founder said the company did it last year, did it again this year and will likely do it again “in the future,” Bloomberg reported Monday (June 17).
Talking with David Rubenstein for an upcoming episode of Bloomberg Television’s “The David Rubenstein Show: Peer to Peer Conversations,” Collison also said that Stripe is in no rush to launch an initial public offering (IPO), according to the report.
While analysts have been watching Stripe and other financial technology veterans closely, waiting to see when and how they might go public, Collison said many companies are going public too soon and that Stripe remains focused on products and opportunities to grow the business, according to the report.
Stripe was valued at $65 billion in February after a sale of shares dealing with employees.
That deal saw the company and some of its investors purchase more than $1 billion in stock from current and former employees,
In announcing the deal, Stripe said that using its own capital to purchase the shares would offset the dilution of the company’s employee stock compensation programs.
“We are pleased to once again offer employees a liquidity opportunity,” Stripe Chief Financial Officer Steffan Tomlinson said at the time. “Our business continues to see strong momentum with the most advanced companies in the world.”
In March, Stripe reported it had surpassed $1 trillion in total payment volume in 2023, a figure up 25% from the previous year and resulting in businesses using Stripe accounting for approximately 1% of global gross domestic product (GDP).
“Stripe was significantly cash flow positive in 2023 and expects to be cash flow positive again in 2024,” Collison and co-founder Patrick Collison he wrote in the company’s 2023 annual letter released March 13. “This threshold is important, because it allows us to invest for the long term, building what we believe our users will need 10 years from now, without regard to the natural volatility of the capital markets. “
At the company’s annual user conference in April, John Collison said that Stripe was founded in 2009 to enable the acceptance of online payments, but that it soon received requests for additional features, which he called “software-based “. financial services.”
“This is what Stripe is building,” Collision said.