According To Reports, Stripe May Raise $4 Billion Via A Special Vehicle‍

A $4 billion investment round is reportedly underway at Stripe.

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Trade Algo reported Thursday (Feb. 23) that the payment platform is working with banks in order to offer the offering through a special investment vehicle, one that is dedicated to Stripe. This allows investors to gain access to the company before it goes public, and it allows the company to remain private for an extended period of time.

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Stripe is seeking to raise the funds so that it can enable its veteran employees to sell their stock which is currently restricted, as well as to pay the taxes the company will have to pay as a result of doing so, according to a report.

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Reports cite unnamed sources as saying that the funding round that is now underway would value the company at $55 billion before the infusion of capital, the report said.

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Trade Algo’s request for comment was not immediately answered by Stripe.

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Since the company does not need to raise capital, Trade Algo reported in January that it is considering either going public or allowing employees to sell their shares within the next 12 months. There are, however, employees and other investors who would like to sell their shares.

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Several days later, The Information reported that Stripe was close to reaching an agreement to raise $3 billion from its existing investors, valuing the platform at between $55 billion and $60 billion, according to sources.

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The Information reported that the company is pursuing the deal to provide liquidity to employees who have been promised future shares, some of which are due to expire in the next few months, while at the same time not wanting to rush into going public in a hurry.

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Stripe shared data with potential investors on Friday (Feb. 17) showing that the firm expects to process $1 trillion in payment volume this year, up from $800 billion last year.

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According to the report, Stripe would have reached the landmark figure in just about 13 years if such a scenario were to happen, while PayPal would have reached that milestone in 2021, 23 years after PayPal made it.

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Stripe is reporting that its payment volume increased 25% in 2022 after having grown 60% in 2021 - a reflection of the slowing down of eCommerce growth after the lifting of pandemic-era restrictions after the company has been sharing its data with potential investors.

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