Who’s keeping an eye on the next fintech play? 👀

Hey Fintech Queens & Kings 👑,

Trend alert! First, it was Stripe, then Revolut, and now Monzo—yep, the "sell-your-shares" train is rolling through fintech town, and it’s leaving quite the trail of dollar signs behind!

It seems to be becoming the go-to move for fintechs! 🤑 Instead of waiting around for that IPO, companies are giving employees the chance to cash in sooner. This growing trend lets fintech talent actually benefit from their company’s growth while still staying private—turning those years of equity into real, spendable money. 💸 Talk about a win-win! 💥

Want to know exactly how much this could mean? 👀 Continue reading to find out how those hard-earned shares might turn into a major payday! 💥

Oh, and my first 100 subscribers will get some nice new surprises. More details coming in soon!

✨ Let’s break it down, fintech queens & kings ✨

Stripe kicked off this trend earlier this year, giving employees the chance to cash out some of their equity at a cool $65 billion valuation. Then, Revolut followed, offering a similar opportunity at a valuation north of $45 billion. And now just in, Monzo jumped on board, letting its staff sell shares during its latest fundraising round, currently valued at £3.7 billion (~$4.5 billion USD).

💸 So, What’s the Deal?

It’s all about turning paper wealth into real wealth, honey! 🤑 These companies have been private for YEARS, with employees racking up tons of equity. But without an IPO or acquisition, that equity is just monopoly money. By allowing these sales, companies are giving employees a chance to cash in on some of that hard-earned value and, maybe, upgrade their lifestyle.

For the companies, it’s a way to keep employees happy without giving up full control or rushing to the public markets. Valuation check: Sure, the valuations may have fluctuated—Stripe’s went down from its peak of $95 billion to $50 billion, but it’s still massive. Meanwhile, Monzo’s valuation might seem modest, but in today’s market, it’s still a solid unicorn status play.

But lets get to the important part, lets talk about money!

📈 What Does This Mean for You?

Let’s say you were one of the early employees and joined Stripe back in 2014, when the company was valued at $1.75 billion. Now, assume that the estimated share price back then was around $50 per share and you had 100 shares.

So, in 2014, your 100 shares would have been worth:
100 shares x $50 = $5,000 🏦

Now, fast forward to 2024, with Stripe’s valuation jumping to $65 billion, which represents a 37x increase from 2014. If the share price grew in proportion:

Your new share price would be:
$50 x 37 = $1,850 per share.

This means your 100 shares today would be worth:
100 shares x $1,850 = $185,000 💰💰💰

Working a long time in these companies payed off - literally 😏

✨ The Big Disclaimer ✨

Of course, these are rough calculations based on valuation and share price growth. Many factors can impact the actual value of shares, including when you join the company, the number of shares you’re granted, dilution, and vesting schedules. Additionally, the price at which shares are sold in liquidity events can differ depending on the terms of the sale and market conditions.

So, remember, while these numbers are fun to play with, everyone’s individual situation will look different! 🎯

✨ The Takeaway? ✨

This trend is all about balancing company growth with employee happiness. It’s about turning potential future money into now money. These liquidity events give employees a chance to cash in on their equity without waiting years for an IPO or acquisition. It’s a big moment in fintech, and we’re here for it! 💅

So, who’s keeping an eye on their share price dashboard right now? 👀

Remember – you read it here first! 😉

👋 That’s it for today! Thank you for reading and have a relaxing day! And, if you enjoyed this newsletter, invite your friends and colleagues to:

Sources: Stripe, The Guardian, Forbes

Opinions: My Own, Memes: Web, I take no credit for their creation. Not Financial Advice

About: I am a business engineer, finance professional, and former banker with a tech mentality, with a deep passion for cryptocurrency and blockchain. My mission is to empower women and underrepresented communities with essential information to foster fintech education, spark money conversations and inspire investment journeys. In addition to my daily role at a fintech scale-up, I am an active member and speaker in the Fintech community.

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