Stripe raising $6B to resolve employee tax issue

parcjjgolf in

Technical Program Manager at Google

Stripe raising $6B to resolve employee tax issue

https://www.newcomer.co/p/scoop-stripe-is-raising-6-billion

Stripe faces a $3.5B tax bill as employee shares expire, so it looks like they're raising money to cover that

Newcomer | Eric Newcomer | Substack

Where technology and venture capital intersect: A deeply reported newsletter on the inner workings of the startup industry written by Eric Newcomer. Click to read Newcomer, a Substack publication with tens of thousands of readers.

newcomer.co

11806

Sort by:

19g617l4fxtj8qBackend Software Engineer

What does it mean to have shares expire ?

bringeeRecruiter

Private companies typically give employees 10 years to exercise their stock options because the tax advantages change after that. Earlu employees of Stripe can’t exercise their options because Stripe hasn’t been acquired or IPO’d so that means they’re sitting on these shares they can’t do anything with and may not be able to do anything with.

That’s my real lay man understanding. Would definitely welcome other insight

Unlock by Signing Up!

Create a free account to view all comments, posts, and more!

About

Public

Tech

Members

822,616