Plaid valued at $8B in employee share sale | TechCrunch

"Plaid, a company that connects financial applications to users' bank accounts, enabling payments and data verification, has allowed employees to sell some of their shares at an $8 billion valuation. The valuation represents a 31% increase from the $6.1 billion valuation the 13-year-old company achieved in April of last year, when it raised a $575 million round led by Franklin Templeton for partly the same purpose: purchasing shares from employees."

"Such transactions have become increasingly common among private companies using liquidity as a retention tool. Recent examples include Stripe, which this week said it would allow employees to sell shares at a $159 billion valuation, as well as Clay, ElevenLabs, and Linear. Beyond retention, these deals can help staff cover tax bills triggered when RSUs vest and relieve pressure on management to pursue an IPO before the company is ready."

Plaid, a financial connectivity platform, confirmed an $8 billion valuation through an employee share sale, marking a 31% increase from its $6.1 billion valuation achieved in April 2023. This transaction follows a similar pattern from the previous round led by Franklin Templeton, which also facilitated employee share purchases and helped cover taxes from vesting restricted stock units. Despite the new valuation, Plaid remains 40% below its 2021 peak of $13.4 billion when fintech valuations surged due to ultra-low interest rates. Secondary share sales have become common retention tools among private companies, with recent examples including Stripe, Clay, ElevenLabs, and Linear. These transactions serve multiple purposes: retaining talent, helping employees manage tax obligations from RSU conversions, and reducing pressure on management to pursue premature IPOs.

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