Stripe collects payments (for Stripe).

Passing the can around to pay the tax bill

March 07, 2023

Ford has filed a patent for a system that could shut off your air conditioning if you miss a car payment. “Disabling such components may cause an additional level of discomfort to a driver and occupants of the vehicle,” the patent application states. Ford has said it has no plans to roll out the system. I guess they just thought registering an idea to give poor people heat stroke would show the company is every bit as innovative as rival Tesla…

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Credit: REUTERS/Dado Ruvic

Stripe passes the can around to pay tax bill

Stripe plans to use funds from its latest round of fundraising to cover a $3.5 billion tax bill that early employees of the company will soon face.

The tax bill relates to ‘double trigger’ restricted stock units which typically only vest once a liquidity event such as an IPO or sale takes place. Stripe has remained private for longer than originally envisioned and so some of these units are due to expire before a liquidity event will take place.

To protect these units, the board will be asked to waive the second vesting condition meaning the units will become taxable. Stripe will then aim to organize a tender offer to allow those early employees to sell at least some of their newly vested shares.

The raise will likely occur at a valuation of $50-55 billion. A significant decline from the $95 billion valuation the company raised at in 2021. Not good but hardly the worst decline in fintech right now.

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