Payments Processor Stripe Lowers Internal Valuation By 28%: WSJ

Payments firm Stripe, which was last valued by private investors at $95 billion, has cut the internal value of its shares by 28%, reported Wall Street Journal citing people familiar with the matter.
Stripe informed staff that the internal share price was $29, compared to $40 in the most recent internal valuation, known as a 409A valuation. According to the source, the move reduced the implied valuation of those shares to $74 billion.
Stripe approved the lower share price effective June 30; however, the source said it didn’t explain the decision to lower its internal valuation.
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Stripe is not the first high-profile company to reduce its 409A valuation. Instacart Inc. reduced its internal valuation from $39 billion to $24 billion earlier this year, citing the need to improve staff retention and recruiting by providing more potential upside with their options, writes WSJ.
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