"On the other, there was a short period of time when Checkout.com was valued at a whopping $40 billion, as part of its $1 billion Series D round closed in 2022. By the end of that year, with the venture world crashing into a bear market, it had already internally slashed its valuation to $11 billion. So $12 billion represents a billion-dollar step up from that."
"But this valuation isn't being obtained because an investor is plunking down cash. The company is the only one buying employee shares back, with no other investors involved in a tender offer, a company spokesperson tells us. Instead, the valuation comes from a 409A valuation, a spokesperson tells TechCrunch. That's an assessment made by an independent third-party. It's not the same as a vote of confidence from a professional investor, but it's also not simply the company giving itself a bump."
Checkout.com reached a $12 billion valuation through an employee stock buyback program. The company had previously been valued at $40 billion during its $1 billion Series D in 2022 and internally cut to $11 billion by the end of 2022 amid a venture-market downturn. The $12 billion figure derives from a 409A valuation performed by an independent third party rather than new external investor funding. The company itself is the sole buyer of employee shares in the tender. Competitor Stripe dropped from $95 billion to $50 billion and later recovered to $91.5 billion via employee tender offers with outside investor participation; a $106.7 billion tender was rumored. Checkout.com is a London-based payments provider used by large e-commerce sites such as eBay.
Read at TechCrunch
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