Square valuation shaved by more than $2bn as IPO share price drops

Conservative price of $11 and $13 a share for company that deals in mobile debit and credit payment raises eyebrows across Silicon Valley

Twitter chief executive Jack Dorsey's other company, Square, has seen at least a third shaved off its 2014 valuation at $6bn, resulting in an IPO share price of between $11 and $13 a share. To make up the shortfall, the company may have to issue extra stock to preferred shareholders.

As more and more "unicorn" companies come under scrutiny for current financial practices rather than the hope of future returns, the conservative share price for Square, which deals in mobile debit and credit payment, raised eyebrows across Silicon Valley. Part of the reason for the drop may be Square's partnership with Starbucks, a deal that has been leaking cash and is due to end next year.