Plaid, the financial technology startup whose planned sale to Visa fell apart in January, is raising about $600m in a funding round that could value it at between $10b to $15b. The deal would represent a steep rise in expectations for the eight-year-old company. Plaid brought in just over $100m in revenue in 2019. The new valuation suggests revenues have doubled or even tripled since the Visa deal, though competition to invest in market-leading fintech companies has also been driving up prices for startup equity.
In the past two months, investors have also been buying Plaid shares from existing shareholders in transactions known as secondary sales. Rainmaker Securities, for example, recently executed sales at $850 a share, giving Plaid an implied valuation of around $18 billion, according to the investment bank’s president, Glen Anderson. Another existing Plaid shareholder said a potential investor had offered to pay an implied share price of roughly $1,000 apiece in late January, more than four times Visa’s acquisition price.