#PayTech / Why Plaid may hold off on the march to go public

Weeks after the mutual termination of the $5.3 billion Plaid – Visa deal, speculation on social media is rife as to which vehicle the company will use to fuel its next growth phase. By that we mean whether or not it decides to go public, and if so, how.

The company continues to release new products – it rolled out a deposit switch offering this week – but many seem only interested in news which has yet to be announced…

In the aftermath of the dissolution of the Visa acquisition deal, reports emerged that the company could go public through a merger with a special purpose acquisition company (SPAC)…

[Ryan Gilbert, Propel Venture Partners:] “I think going public is a distraction… You only start raising public capital when you think you’ve outgrown what private capital can bring you, and I don’t think that they’ve outgrown that. There are more than two fistfuls of very large funds – venture funds, private equity funds, hedge funds, et cetera – that will jump in.”

Gilbert noted that Plaid, being a leading infrastructure player like Marqeta and Stripe, has the luxury of determining its own growth path, and that it stands to become stronger as a private company.