“Private financial technology business Stripe Inc. is in talks to raise a new funding round valuing it higher than its last private valuation of $36 billion,” Bloomberg reports.
What is Stripe? A competitor of Square and PayPal, Stripe is used by businesses to take payments, and its customers include Amazon, Salesforce, Lyft and Instacart. The company has boomed during the pandemic as more shoppers turn online to e-commerce for a safe, contactless experience.
- This year, Stripe also started a card-issue service in the U.S. and agreed to acquire a Nigerian payments startup to expand in Africa.
So how much? The number being discussed could be “more than $70 billion or significantly higher, at as much as $100 billion, said one of the people, who asked not be identified because the matter is private.”
- If that’s the case, Stripe would become the current most-valuable venture-backed startup in the U.S., according to CB Insights.
- John and Patrick Collison founded Stripe in 2010 after selling their first company for roughly $5 million and are worth around $4.3 billion each today.
- Stripe employs more than 2,500 people across 14 global offices.
- In April, the company raised $600 million at a $36 billion valuation, and it has a total of almost $2 billion in venture capital since it launched a decade ago.
Just a reminder, talks are “at an early stage, and there’s no guarantee the funding round will be completed.
This probably means that public investors like us won’t have a chance to invest in Stripe for a while longer. The one actionable thesis I have from observing the growth in Stripe, Plaid, Square, and PayPal is that I am long-term bearish on old-school payment processors ($GPN, $FISV, etc), as well as the transfer and debit side of traditional banks and card businesses ($V, $MA, $AXP).