https://techcrunch.com/2022/07/14/stripe-fintech-payments-valuation-cut-28/

Stripe is the latest high-profile fintech company to take a massive valuation cut as the market downturn begins to hit the sector especially hard. Last valued at $95 billion, the payments processor has cut the internal value of its shares by 28%, sources told the Wall Street Journal.

The Journal reports that the valuation cut comes from a 409A price change, which means that Stripe hasn’t decreased the value of preferred shares sold in the last round. An internal valuation change is meant to be a more objective pricing, not set by startups or venture investors but chosen by a third party. Despite the 409A valuation remaining separate from Stripe’s latest round price, it is still a relevant cut due to the sheer decrease. In fact, it’s somewhat uncommon for a startup to proactively cut their own valuation, outside of a fundraise, making today’s news all the more interesting.