In December, The Information reported that payments company Square was considering funding a secondary tender offer for employee shares at a $5 billion valuation. We’re hearing from sources close to the transaction that Square has initiated this tender offer, at a $5 billion valuation (up from $3.25 billion at the company’s last round of funding).
According to our sources, existing investors SV Angel and Rizvi Traverse Management are buying shares from shareholders as well as new investor Groupe Artemis, a French holding company owned by luxury goods mogul François-Henri Pinault. The offer is being facilitated on Second Market, we hear. In this particular offering, existing, vested shareholders, including employees, are able to sell a portion of their vested stock.
As more tech companies wait longer to go public, it’s not uncommon for these secondary offerings to take place to give early employees some liquidity prior to a public offering…
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