Stripe eyes new $6bn funding round at lower valuation – report

Stripe co-founders John and Patrick Collison

Adrian Weckler Twitter Email

March 09 2023 02:23 PM

Stripe may be raising as much as $6bn (€5.7bn) in a new funding round that would see its valuation fall by almost half, according to a US report.

The payments firm founded by Limerick brothers Patrick and John Collison will reportedly use the cash for a combination of purposes, including tax issues related to employee shares.

While news of Stripe seeking a fresh round of funding has been widely reported in recent weeks, the $6bn figure was first published on Wednesday by former Bloomberg journalist Eric Newcomer on his tech blog, Newcomer.co.

The venture capital firms Thrive Capital, General Catalyst, Andreessen Horowitz and Founders Fund are reportedly participating in the round, with Goldman Sachs also involved through its own private wealth clients.

A spokesperson for Stripe declined to comment.

While tech stocks have partially recovered from the slump of late 2022, valuations remain significantly below their peak of last summer.

Stripe’s last valuation was $95bn after a $600m funding round in March 2021. This was participated in by Ireland’s Strategic Investment Fund (Isif).

Last year, Stripe announced that it would lay off 14pc of its workforce, also impacting its Irish base. The company, founded in San Francisco in 2010, describes its Dublin office as its joint global headquarters.