Following a fresh $200 million Series C raise in December, San Francisco-based fintech startup, Ripple announced that the company is now valued at $10 billion.
The funding round led by Tetragon and SBI Holdings put Ripple above Coinbase ($8 billion) in the list of most valued blockchain-related companies in the United States and was supposed to help the startup continue on the path to global adoption.
Fast forward to eight-month later though, BTCTimes sources report that two investors, including an “early-stage” investor in Ripple do not believe that the company should be valued at $10 billion. Thus, they are looking for opportunities to privately offload their equity holdings in Ripple at a steep discount.
The source reportedly has information about investors looking to liquidate equity and said regarding Ripple equity:
“I have access to two blocks of Ripple [equity] at a substantial discount to the last fundraise.”
The two investors are said to be from America and China, and they are willing to let go of their shares in Ripple at a 35-40% discount to the valuation given to by the startup’s Series C round investors. That amount suggests that Ripple has an over-the-counter valuation between the range of $6-6.5 billion.
Meanwhile, the attempt to sell equity comes off the back of a quarter that has seen the value of XRP, Ripple’s largest holding rebound significantly after a slow start to the year.
Ripple Also Has IPO Plans
The latest development around early-stage investors looking to sell-off equity at a lower valuation means that the possibility of the startup become publicly-traded is still farther off in the future.
At the World Economic Forum in Davos, Switzerland Ripple CEO, Brad Garlinghouse labeled an initial public offering (IPO) as a “natural evolution” for the company.
As Coinfomania reported then, Garlinghouse predicted that a number of crypto-related companies would become publicly-traded within the next 12 months. He said about Ripple:
“We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side.”