Stripe, the US-based PayTech giant, has reportedly seen its valuation cut by 11% and now sits at $63bn.
This comes just six months after another devaluation, which saw its valuation as $74bn, according to a report from TechCrunch.
This price cut puts Stripe’s internal per-share price at $24.71, down 40% since peaking.
The change in valuation was not caused by a new funding round, but a new 409A price change. The 409A valuations are set by third parties, meaning they are not tied to what investors think.
A 409A is typically completed every 12 months or when a material event could lower a company’s valuation, it said.
However, many consider getting a 409A at a lower valuation to its private valuation as a good thing, TechCrunch claimed. The reason for this is because a 409A valuation allows a company to offer their employees stock options at a lower price. This is often used as a recruiting tool to attract talent.
However, as Stripe had to cut 14% of its workforce, it is unlikely this is to attract new staff.
Founded in 2010, Stripe offers payment processing software that allows developers to embed payment solutions, whether from credit cards or other digital means.
Last year, Stripe launched its operations in Israel and began recruiting local talent.
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