In recent months, fintech companies have increasingly turned to secondary share sales as a viable alternative to traditional exit strategies, seeking to enhance liquidity for employee stockholders and raise additional capital. Notably, Plaid and Stripe have emerged as key players in this evolving landscape.
Stripe is reportedly planning to facilitate a sale of employee-held shares that could value the company at $85 billion or higher, according to tech news outlet The Information. This initiative is part of a broader trend that includes a succession of share buybacks and secondary sales, which have contributed to the company’s resurgence in value, nearing its $95 billion peak during the exuberant early 2020s. The anticipated new valuation signifies at least a 20% increase from an employee-share sale orchestrated by Stripe last summer.
Similarly, Plaid is gearing up to engage in this trend, collaborating with Goldman Sachs to arrange a deal that would enable early-stage investors and employees to liquidate their existing shares. This transaction is expected to generate between $300 million and $400 million. Plaid had previously secured $425 million in a Series D funding round in 2021, which valued the firm at $13.4 billion.
Several fintech firms have already reaped the benefits of secondary share sales. For instance, UK-based Super App Revolut achieved a valuation of $45 billion in August following a successful share sell-off, while challenger bank Monzo attained a valuation of $5.9 billion from its own share sale. Additionally, British savings and investment platform Moneybox raised £70 million in October, predominantly through a secondary share sale that nearly doubled its valuation over the past two years to £550 million.
This trend highlights how fintech companies are leveraging alternative funding mechanisms to support growth and enhance employee engagement.