plaid, a company that connects financial applications to users’ bank accounts, enabling payments and data verification, has given employees permission to sell some of its shares at a valuation of $8 billion, the company confirmed to techcrunch on thursday.
This valuation represents a 31% increase from the $6.1 billion valuation the 13-year-old company achieved in April last year, when it raised a stake. $575 million The round led by Franklin Templeton was partly for this purpose: buying shares from employees, including helping them cover the taxes associated with converting expiring restricted stock units (RSUs, a form of equity compensation) into shares.
Despite its new, bigger headline numbers, plaid is still valued at 40% less than its $13.4 billion peak in 2021, when ultra-low interest rates fueled a massive surge in fintech valuations.
Such transactions have become common among private companies looking to access liquidity. retention device. Recent examples include Stripe, which this week said it would allow employees to sell shares at a lower price $159 billion valuationas well as Soil, elevenlabsAnd linear.
Beyond retention, these deals can help employees cover tax bills arising when RSUs vest and relieve pressure on management to pursue an IPO before the company is ready.
