(Bloomberg) — Financial technology startup Banking Circle is in discussions with investors to raise funding at around a $3 billion valuation, according to people familiar with the matter, about half the level previously sought amid rocky markets and a slowdown in the venture capital sector.
The firm is seeking to raise about $300 million in new capital, the people said, asking for anonymity because the talks are private. Swedish investment firm EQT AB acquired a majority stake in Banking Circle in 2018 from Saxo Bank and other minority owners.
EQT will also sell down some of its stake in the company as part of the round, one of the people added. The funding talks are ongoing and the valuation may change, the people added.
Representatives for EQT and Banking Circle declined to comment.
Bloomberg News reported in August that Banking Circle was working with advisers to solicit interest from investors for financing at around a $6 billion valuation. The drop-down on valuation in talks is further evidence of turbulence in private technology markets after a year of record fund-raising and investment.
Founded in 2013, Banking Circle is a fully-licensed bank and facilitates cross-border payments in 25 currencies. Clients include Stripe Inc. and Alibaba Group Holding Ltd., according to its website.
Read more: Banking Circle Said to Seek Funding at $6 Billion Valuation
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