Author: Ginny Hendricksen
Updated on: May 15, 2024
Stripe is a fintech company with a leading online payment processing platform. It is one of the top 10 most valuable private companies tracked by Notice.co, with a $50 billion post-money last round valuation. The company has 2 headquarters, San Francisco and Dublin.
Stripe services other companies via APIs which allows them to send and receive payments and manage their operations online. Stripe’s low-code and no-code integrations simplify the payments process and automate workflows. The company is also known for its buy now pay later (BNPL) payment option.
Noteworthy Stripe customers are Slack, Zapier, Instacart, Google, Shopify and Amazon.
Stripe has acquired at least 13 companies since 2013 including: Payable, Paystack, OpenChannel, and Okay. Checkout.com, Paypal, and Fiserv are a few of the company’s competitors.
Yes. Stripe is a venture-backed company which has issued 2 classes of common stock, FF preferred shares, and Series A-I preferred stock. Investors usually buy preferred stock and employees typically get common stock options or restricted stock units.
The NYSE or NASDAQ stock exchanges do not yet list Stripe stock, and the general public cannot invest in Stripe stock through traditional brokerage accounts. There is no Stripe ticker symbol or Stripe stock symbol associated with the company.
Stripe is one of the private stocks held by Destiny Tech100 (DXYZ). Retail investors looking to get indirect ownership of Stripe or exposure to the fintech payments industry may invest in this fund, or buy shares of major investors of the company (listed below).
Accredited investors are permitted to buy Stripe stock pre-IPO. Stripe stock has been popular in the secondary market, and is currently ranked #4 most actively traded private companies on Notice.co. Stripe will appear in the Notice stock ticker if it has recent private market activity.
Private market transactions can be complex and often involve company approvals, legal purchase agreements and wires to third parties. Trades can take 30 - 60 days to complete and that's why many investors hire experienced private market brokers to ensure things go smoothly.
Notice members can message expert brokers for free to learn more about buying and selling private stocks.
Financial information on private companies is hard to come by because they are not required to report financial information like publicly traded companies are. The company told investors that they were expecting to make a profit around the end of 2023.
What is known, is that Stripe makes money through taking transaction fees. The company has over 100 B2B customers across 46 countries, and continues to grow. Stripe enjoyed a 25% uptick in payments processed on their platform from 2022 to 2023, reaching over $1 trillion total.
Stripe’s revenue has been increasing each year; rising by 70% in 2020, 54% in 2021, and 25% in 2022. Revenue reports state that the company made $14 billion (gross revenue) in 2022.
In May of last year, Stripe raised $4.6 billion in its Series I funding round. Investors purchased shares at a $50 billion post-money valuation.
Stripe's common stock valuation in March 2021 hit a peak of $95 billion. In 2022, Stripe decreased the internal valuation of its common stock (409a) several times to $74 billion, $63.4 billion, and finally $63 billion.
In the most recent funding round (Series I) Stripe’s investors were Baillie Gifford, Thrive, Founders Fund, MSD Partners, Andreessen, Goldman Sachs, General Catalyst, GIC and Temasek. The payments company is currently ranked #8 most funded private companies on Notice.co.
The co-founders and brothers, Patrick and John Collison are also owners of the company. Allianz X, Baillie Gifford, Fidelity, Sequoia Capital, AXA Venture, and NTMA invested in the prior funding round, Series H in 2021.
You can track Stripe stock price live on the stock price chart above.
A potential Stripe IPO has been a much awaited event for the last years. As of today, Stripe has not filed a Form S-1 with the SEC. The initial target stock price for its public offering is unknown.
Private companies set minimum requirements to qualify for a public offering. So far, the minimum Stripe market cap for a public offering has not been released. The minimum gross proceeds Stripe’s stock in a public offering is also unknown.
Private companies that are low on cash are more likely to seek funding through an IPO. This is an unlikely to be a motivation for Stripe to IPO any time soon. The company has not announced an IPO date.
That said, Stripe is well positioned to IPO having been in business for more than 10 years. Because of its size and estimated market share of around 38% by conservative estimates, Stripe's exit would be significant.
Some experts believe Stripe might choose to pursue a direct listing to sidestep the traditional IPO roadshow, underwriting costs, and stock lockup period post exit.
John Collison recently said that he understands investors enjoy wondering about and making projections for Stripe’s IPO, but there is no new to share on that front right now.