Sequoia Capital reportedly offers Stripe investors share deal as fintech valuation tops $70bn
Sequoia Capital has reportedly offered limited partners of some of its legacy funds the chance to sell their shares in Stripe, a business payments fintech backed by the venture firm since 2010.
Stripe investors offered share deal by Sequoia
The firm is said to have made the offer through an email sent to LPs this week, as first reported by Axios.
The email reads: “We are contemplating a transaction where new purchasers, including the Expansion Fund, Sequoia Capital Fund, Sequoia Heritage, and Sequoia Capital Global Equities, will commit to buy up to $861 million of Stripe shares held in select Sequoia funds raised between 2009 and 2012.”
Sequoia Capital claims to have invested a total of $157 million into the fintech, which as per a fair market value (FMV) assessment this month, is now valued at $70 billion (a 35% decline on its former $95 billion valuation three years ago, but significantly up from its $50 billion valuation from last year following its $6.5 billion funding round), with a current share price of $27.51.
LPs of these legacy funds “will have the option to hold or to sell all or a portion of their Stipe shares”, the email continues, with those who choose to sell standing to benefit from no carried interest. The recipients of the deal have until 14 August to make a decision.
This latest offer, which remains unconfirmed by Sequoia Capital, echoes a similar deal put to current and former Stripe employees holding shares in February, which later enabled the fintech to raise $694.2 million in April.
Along with its acquisition of software start-up Okay in 2023, these developments have fuelled further speculation that Stripe is heading towards a stock market floatation. However, Stripe has yet to confirm the move itself.
Meanwhile, it also represents Sequoia Capital’s efforts to appease investors supporting some of its more mature portfolio companies, given that its latest email to LPs emphasises a recognition that “each of you has different goals for liquidity and portfolio management” while also stressing that the firm “remains highly optimistic about Stripe’s future”.
