News that T. Rowe Price cut the value of its stake in fintech giant Stripe is making headlines this week, the new data point coming in the wake of similar cuts by other investment houses regarding their ownership in late-stage startups.
However, while it is true that T. Rowe Price reduced the value of its stake in Stripe, part of its Global Technology Fund, the latest reduction in its worth is not unique. Not only has Fidelity also disclosed that it now values its Stripe shares at a discount to prior marks, but the latest T. Rowe Price news also comes after a similar cut in March.
Stripe is not under unique pressure; other fintech companies both public and private have seen their valuations reduced by revamped 409A valuations, new funding rounds, public offerings and a broader selloff in the stock market that has broadsided financial technology companies in many cases. (Recall that Stripe’s interval valuation declined earlier this summer.)
Image and article originally from techcrunch.com. Read the original article here.