Checkout.com knocks down internal valuation to $11bn
Revolut is now the highest-value startup in Europe.
Following five months on top, Checkout.com has been knocked off its spot as Europe’s highest value startup after slashing its internal valuation to around $11bn.
According to people familiar with the situation, the startup told employees about the valuation drop last month, at the same time lowering the price of stock options from around $252 to $65 per share, as first reported by the Financial Times.
Reducing the internal valuation will help staff by reducing the cost of company equity, putting them in a better position if the company ever goes to an initial public offering.
“Checkout.com recently announced to our employees that we will align equity awards to an updated tax valuation that reflects the current macroeconomic conditions,” a spokesperson said.
“This gives our employees the opportunity to share more meaningfully in the potential economic upside as we continue to grow our business.”
Speaking at Web Summit last month – likely around the time of the valuation cut – founder and CEO Guillaume Pousaz said quite plainly that valuation is actually not that important to him.
“Valuation is an investor component. I’m a founder, so I just care about building, about net revenue growth and margin,” Pousaz said.
“I would almost tell you that I don’t care at all because I care about where my revenue is going and that’s it,” he added.