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On July 15, 2024, TechCrunch reported that Sequoia Capital offered limited partners in funds raised between 2009 and 2011 the opportunity to sell up to $861 million of Stripe shares to newer Sequoia funds. The LP letter reportedly referenced a $70 billion 409A valuation for Stripe and valued Sequoia’s entire position at about $9.8 billion. This was a secondary liquidity transaction—not a new Stripe funding round, a public-market price or a confirmed IPO timetable.
What Sequoia offered
The reported offer was aimed at investors in older Sequoia funds raised from 2009 through 2011. Those funds’ limited partners—typically institutions, endowments, foundations, family offices and wealthy individuals—could sell up to $861 million worth of Stripe shares.
Newer Sequoia funds were reportedly the buyers. In simple terms, the proposed transfer looked like this:
LPs in older Sequoia funds → sell existing Stripe shares → newer Sequoia funds
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1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesThat structure can return cash to investors in aging funds while allowing Sequoia to keep economic exposure to Stripe. It does not mean Sequoia sold its entire Stripe holding, and the reviewed sources do not establish that the full $861 million offer closed.
The account came from TechCrunch, citing an LP letter shared with Axios; Sequoia declined to comment to TechCrunch. The sources also do not establish that Stripe formally approved, sponsored or participated in the fund-to-fund transfer.
What the reported $70 billion valuation means
The $70 billion figure was reportedly Stripe’s latest 409A valuation. A 409A appraisal generally sets the fair market value of a private company’s common stock for employee-option tax purposes. It is not the same thing as:
- a public stock-market capitalization;
- a completed initial public offering;
- the price of a new preferred-share financing; or
- a cash sale of the whole company at exactly $70 billion.
Preferred investors may have different rights, preferences and liquidation protections from common shareholders. Transfer restrictions, rights of first refusal and company-approval requirements can also affect a private secondary price. Therefore, “Stripe had a $70 billion 409A valuation” is more precise than saying “Stripe raised money at a $70 billion valuation.”
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The original report is available at TechCrunch.
Stripe’s valuation timeline
| Date | Event | Reported figure | How to interpret it |
|---|---|---|---|
| March 2021 | Private-market peak | $95 billion | Stripe’s high-water mark during the technology-market boom. |
| March 2023 | Series I financing | More than $6.5 billion raised at a $50 billion valuation | Stripe said it did not need the money to operate and intended to provide liquidity to current and former employees. |
| February 2024 | Reported employee tender offer | $65 billion | A reported recovery from the 2023 financing valuation, still below the 2021 peak. |
| July 2024 | Sequoia LP liquidity offer | $70 billion 409A valuation | A private-company reference in Sequoia’s reported LP communication, not a new primary financing price. |
| 2025–2026 | Later company updates and liquidity activity | Current valuation not established by the reviewed sources | The 2024 $70 billion figure should not be presented as Stripe’s current 2026 valuation. |
Stripe’s March 2023 announcement is at Stripe’s newsroom. Later company announcements are indexed in its newsroom archive.
Why create liquidity instead of waiting for an IPO?
Venture funds normally return capital through an IPO, an acquisition or secondary sales. When public listings slow, a successful private company can remain valuable on paper while its early investors wait years for cash.
A secondary transaction addresses that fund-life problem without forcing the company to list. Older-fund LPs can realize some value, while newer funds buy an asset Sequoia apparently still wants to hold. For Stripe, the arrangement can provide investor liquidity without raising operating capital or undertaking the cost and disclosure burden of an IPO.
Liquidity for Sequoia LPs, liquidity for employees and primary capital for Stripe are different things:
- LP liquidity: an investor sells an existing fund-held position for cash.
- Employee liquidity: current or former employees sell shares through a tender or secondary program.
- Primary capital: investors buy newly issued shares and the company receives money for operations, hiring or investment.
- Secondary capital: money goes to existing shareholders rather than to the company.
Why Stripe had flexibility to remain private
TechCrunch reported that Stripe’s users processed more than $1 trillion in payment volume in 2023, up 25%, and that Stripe was “robustly cash flow positive” in 2023 and expected to remain so in 2024. Stripe’s own 2023 annual update also reported $1 trillion in total payment volume—roughly 1% of global GDP. Payment volume is the value of transactions processed for users, not Stripe’s revenue.
A company generating cash and able to arrange employee or investor tender offers has less need to enter public markets simply to fund ordinary operations. That does not rule out an IPO. It means Stripe could choose its timing and structure rather than listing under immediate financing pressure.
The $70 billion reference also did not prove that an IPO was imminent, cancelled or permanently rejected. It showed how private-market liquidity could reduce the urgency of going public.
What Sequoia’s position suggested
According to the reported LP letter, Sequoia had invested $517 million in Stripe since 2011, and its full Stripe position was valued at approximately $9.8 billion. The letter also reportedly said Sequoia distributed $10 billion to investors in 2023. Those figures come from the TechCrunch account and its underlying LP communication, not a public Sequoia filing cited here.
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Dividing $9.8 billion by the $70 billion headline value produces a rough comparison of about 14%. That is not proof Sequoia owned exactly 14% of Stripe: fund-level holdings, dilution, share classes and valuation methods can materially change the calculation.
Best Value
Sequoia partner Luciana Lixandru and Kevin Kelly of Sequoia Heritage were reported to sit on Stripe’s board; Lixandru replaced Michael Moritz after Moritz left Sequoia. Board representation can provide insight into a company, but it does not prove knowledge of Stripe’s eventual listing plans. Sequoia Capital and Sequoia Heritage should also be distinguished: the report described Heritage as the firm’s separate wealth-management business.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Who benefited—and what risks remained?
Older-fund LPs
- Received a possible path to cash before an IPO or acquisition.
- Could crystallize part of a gain and help older funds return capital.
- Still faced private-market pricing, transfer and execution risks.
Newer Sequoia funds
- Acquired exposure to a scarce, mature private company.
- Maintained Sequoia’s broader economic relationship with Stripe.
- Accepted the risk that a private valuation might not translate into a successful exit.
Stripe and its employees
- Could support shareholder liquidity without an immediate IPO.
- Avoided adding operating capital that Stripe may not have needed.
- Did not make every shareholder liquid; private-company restrictions and differing share rights still mattered.
A high private valuation is not a guaranteed profit or a promise of a future listing. The reported move may suggest Sequoia saw continued upside in Stripe, but that is an inference—not a stated guarantee.
What this transaction did—and did not—establish
| It established or indicated | It did not establish |
|---|---|
| A reported $70 billion 409A valuation in 2024. | That Stripe raised new money at $70 billion. |
| A reported offer of up to $861 million to LPs in 2009–2011 funds. | That the entire offer was completed. |
| Newer Sequoia funds were reportedly the buyers. | That Sequoia exited Stripe or sold its full stake. |
| Private investors could obtain liquidity without an IPO. | That Stripe was going public soon—or would never go public. |
| Stripe’s reported value had recovered from $50 billion in 2023 to $70 billion in the cited 2024 reference. | That Stripe had returned to its $95 billion 2021 peak in economic terms. |
How to read the story in 2026
The Sequoia offer is a historical July 2024 event, not a newly confirmed 2026 valuation. Stripe’s official newsroom lists later company and employee-liquidity updates, but no current valuation as of August 18, 2026, was established. Any analysis should therefore label $70 billion as the reported 2024 409A figure.
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Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →The broader lesson is about private-market plumbing. Large, cash-generating companies can let early investors and employees sell shares through secondaries while preserving management’s choice about when—or whether—to pursue a public listing.
The Bottom Line
Sequoia’s reported offer gave LPs in older funds a chance to sell up to $861 million of Stripe shares to newer Sequoia funds, using a reported $70 billion 409A valuation as a reference. It created liquidity and preserved Sequoia’s exposure; it was not a Stripe fundraising round, a full Sequoia exit or proof of an imminent IPO.
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