In a fresh liquidity event, fintech firm Plaid has enabled employees to sell a portion of their shares at a valuation of $8 billion, the company confirmed to a technology publication on Thursday. Plaid connects financial applications to users’ bank accounts, allowing payments and data verification across platforms.
The new valuation marks a 31% rise from the $6.1 billion valuation recorded in April last year, when the 13-year-old company raised $575 million in a funding round led by Franklin Templeton. That round was partly aimed at purchasing shares from employees, including helping them manage tax liabilities linked to converting expiring restricted stock units (RSUs) into equity.
Despite the increase, Plaid’s current valuation remains 40% below its 2021 peak of $13.4 billion. During that period, ultra-low interest rates fuelled a sharp surge in fintech company valuations. The recent transaction reflects a more measured market environment, even as private companies look for ways to reward and retain talent without entering public markets prematurely.
Employee share sales have become more common among private firms using liquidity programs as a retention strategy. Recent examples include Stripe, which recently allowed staff to sell shares at a $159 billion valuation, along with Clay, ElevenLabs and Linear. Such transactions not only support employee retention and cover tax obligations triggered when RSUs vest, but also reduce pressure on management teams to pursue an IPO before they are fully prepared.
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