Sep 9, 2024 - Business

Scoop: Sequoia Capital completes $861 million Stripe deal

Dan Primack

Stripe co-founders Patrick and John Collison. Photo: David Paul Morris/Bloomberg via Getty Images.

Sequoia Capital last week completed its $861 million purchase of Stripe shares from Sequoia limited partners, Axios has learned.

Why it matters: This is a stark example of just how thirsty LPs are for liquidity, as there was enough selling interest to fulfill the full allotment that Sequoia offered in July.

It also could become a model for how VC firms deal with long-in-the-tooth portfolio companies.

Details: LPs in Sequoia funds raised between 2009 and 2012 sold at $27.51 per share, which is Stripe's most recent 409A mark and represents a $70 billion valuation.

Some LPs exited completely, while some only sold a portion, and many also were buyers via commitments to more recent Sequoia funds.
Stripe, the payments giant founded 14 years ago, didn't receive any proceeds.

What they're saying: "We are pleased that we are able to offer flexibility to our LPs and in doing so, deepening our commitment to Stripe, a company we are very bullish on long term. We are optimistic about Stripe's future and believe that Stripe is well-positioned to compound for many years to come." — Sequoia Capital spokesperson to Axios

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Scoop: Sequoia Capital completes $861 million Stripe deal

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