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Stripe, the American company specializing in the management of online payments, has just announced a new fundraising of $6.5 billion. A new round of financing which is surprising insofar as it comes in a particularly delicate economic period marked by the bankruptcy of several banks.
A new fundraiser for Stripe
The online payment solution has signed financing agreements on the basis of a contribution of funds of 6.5 billion dollars. This fundraiser values the American company at more than 50 billion dollars. This is much less than during the previous fundraising carried out in 2021 which valued the company at 95 billion dollars.
Payments giant Stripe raises $6.5 billion at a $50 billion valuation https://t.co/e8n5Bem97s
— Dan Primack (@danprimack) March 15, 2023
The financing round was closed with current shareholders of Stripe. These include venture capital funds: Thrive Capital, A16z, Founders Fund, Baillie Gifford, General Catalyst and MSD Partners, as well as new institutional investors such as Goldman Sachs Asset, GIC and Temasek.
Could this new fundraising hide financial difficulties?
This new fundraiser comes in a particularly difficult financial period, marked by the bankruptcy of several leading American banks. SVB was in fact the 16th commercial bank in the United States and a leading partner for nearly half of American start-ups (including companies specializing in cryptocurrency and the sector of NFT).
With the bankruptcy of SVB and several American digital banks, we are entitled to wonder if Stripe is not currently experiencing some financial difficulties. It should be known, in fact, that Stripe was the financial partner of Silicon Valley Bank, via its remote business creation service: Stripe Atlas. It allowed digital entrepreneurs to open a corporate account remotely in this bank.
Stripe is a real gas factory and the company offers much more than online payments. For example, there is a solution Stripe Capital which allows companies to borrow funds to better manage cash flow. If some of its customers lack the funds to make refunds, one can imagine that payment failures then affect Stripe’s finances.
Stripe says it uses the funds to run its day-to-day business:
In his Press release, Stripe wants to be very reassuring. It states that it does not need these funds to run its day-to-day operations and that it intends to use these funds to meet its employee withholding obligations in connection with its share award program and that it intends to provide cash to current and former employees.
According to the official documentation, Stripe does not store its users’ funds in the various impacted banks by the current banking crisis, namely Silicon Valley Bank (SVB), Valley Bank UK (SVB UK) and Signature Bank. To be continued !
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Source : Stripe
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