Axios Pro: Fintech Deals

January 12, 2023

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Welcome to Thursday, fintech friends.

Situational awareness: Crypto lender Nexo’s office in Sofia was raided by Bulgarian police this morning as part of an investigation into suspected money laundering and tax crimes.

1 big thing: Stripe cuts internal valuation (again)

Illustration of a calculator with downward arrows flashing on the screen.

Illustration: Allie Carl/Axios

Fintech giant Stripe has again lowered its internal valuation, reducing it by 11% — or about 40% off its highs from last summer, Ryan writes.

Why it matters: Long considered an IPO candidate, the reduction to Stripe's internal 409A valuation follows a rout in public market valuations of payments and fintech companies.

Details: As first reported by The Information, Stripe’s internal valuation now stands at $24.71 per share, which implies a valuation of $63 billion.

  • This is the third time Stripe has cut its 409A valuation since June, when it was initially marked down from $40 to around $29 per share.
  • Altogether, Stripe has seen its internal valuation fall about 40% from a high of around $103 billion.

Between the lines: A 409A valuation is an internal accounting measure used to price employee stock, which is not equal to valuations derived from outside investment.

  • Startups sometimes lower their 409A valuations as a recruitment incentive, as lower prices give employees more upside.
  • However, Stripe announced a series of job cuts in November that reduced its global headcount by around 14%.

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