Stripe Inc.’s valuation nearly tripled in less than a year to reach $ 95 billion with its most recent fundraiser, allowing the payments platform to capture Elon Musk’s SpaceX scoop to become America’s # 1 startup. values. Participants in Stripe’s latest financing, which raised $ 600 million in new capital, include the Irish national treasury management agency, Allianz, Fidelity, Baillie Gifford, AXA and Sequoia Capital.
Stripe is an Irish-American financial services and Software as a Service (SaaS) company headquartered in San Francisco, California, and Dublin, Ireland. The company primarily offers payment processing software and APIs for commerce websites and mobile applications. Founded in 2010 by Irish brothers Patrick and John Collison, Stripe is used by more than 50 companies each processing over $ 1 billion annually to receive payments and bill customers. Its customer portfolio includes big names such as Google, Uber and Amazon, and more recently Just Eat, Zoom, Jaguar Land Rover and shipping glove Maersk.
Stripe didn’t really need the money despite the fundraising, said CFO Dhivya Suryadevara. I see this as a little more opportunistic, she said in an interview on Sunday. The company is very efficient in terms of capital. Stripe was worth $ 36 billion as recently as April, when it raised $ 600 million from investors including Andreessen Horowitz and Sequoia Capital. The American fintech startup has said it has raised those millions of dollars as companies providing online tools for financial and payments services are getting a boost from the coronavirus pandemic.
Fintech startups have attracted a flood of investment over the past year as they push for digitization in financial services. The pandemic is accelerating the trend as more customers seek contactless payment and use banking services without going into branches, venture capitalists say. People who never dreamed of using the Internet to see the doctor or buy groceries are now doing it out of necessity. And companies that have postponed their migration to the connected world where they had no reason to push have made the jump almost overnight, John Collison, president and co-founder of Stripe, said in a statement. We believe now is not the time to back down, but to invest even more in the Stripe platform.
For Stripe board member Mike Moritz, the money will just be a bad days fund. It helps to have a little more confidence, he says. Moritz and Mr. Suryadevara both revealed that Stripe will continue to seek acquisitions. The company is not focusing on an IPO at the moment, said the CFO, and has chosen investors who share its long-term vision. The next ten years and beyond will be even more exciting, she added.
While some tech startups are laying off workers, fintech executives say they’re hiring talent. For people with a solid balance sheet and many years of experience, this is a huge opportunity, said Mark Goldberg, partner of Index Ventures, who invested in Fast. He asked the company to hire amazing people. Mark Carney, former Governor of the Bank of England and the Bank of Canada, joined its board last month. It will help guide Stripe’s efforts to enable more companies to fund emerging carbon removal technologies.
Stripe is riding the wave of e-commerce growth, with more than 200,000 new businesses in Europe signing up to the platform since the start of the pandemic. The company that takes a portion of every transaction it processes began by selling payment services to developers of other tech startups, which has allowed it to take advantage of some of the fastest growing companies in the world. Today, Stripe has a higher valuation than Facebook.
As part of its user policy, the company asks users to consent not to accept payments for high risk activities, including for any business or organization that engages in, encourages, promotes or celebrates unlawful violence or abuse. physical harm to people or property. In 2018, the company deactivated accounts following violent acts. Indeed, after an armed man killed 11 people in an attack on a Pittsburgh synagogue in the same year, the Stripe social network Gab account on which the alleged shooter had posted anti-Semitic messages was closed.
Stripe is also one of the technology platforms that have decided to deprive Donald Trump of their services. Stripe had decided to ban the former president’s campaign account for violating his policy against encouraging violence. Trump’s campaign received more than $ 1.8 million on Stripe during the 2020 election cycle, according to Federal Election Commission records.
Stripe was founded in 2010 by Irish brothers John and Patrick Collison, now aged 30 and 32, the couple left Ireland to study at Harvard University and the Massachusetts Institute of Technology (MIT). They dropped out, settled in Palo Alto, California, and founded Stripe. John Collison said Stripe is processing nearly 5,000 requests per second in 2020, including payments, refunds and data checks.
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Payment platform Stripe raises $ 600 million, bringing its valuation to nearly $ 36 billion amid COVID-19 pandemic
Stripe joins list of tech platforms that have decided to deprive Donald Trump of their services following violent actions on Capitol Hill