Stripe confirms $95B valuation, becoming most expensive U.S. startup

Mar. 15, 2021 4:59 AM ETStripe (STRIP), PYPL, SQSTRIP, PYPL, SQBy: Yoel Minkoff, SA News Editor46 Comments
  • Digital payments giant Stripe (STRIP) is raising $600M in new funding at a $95B valuation, making it the most valuable startup in the U.S. It's nearly triple the $36B valuation Stripe secured last April, when it raised another $600M from investors including Andreessen Horowitz and Sequoia Capital. Investors in this round include Allianz, Fidelity and Baillie Gifford, as well as the sovereign wealth fund of Ireland, which is the home country of Stripe founders John and Patrick Collison.
  • Backdrop: Stripe was founded in 2010 by the two Irish siblings (their net worth jumped to $11.4B each with the latest valuation). The company's software, which competes with Paypal (NASDAQ:PYPL) and Square (NYSE:SQ), is used by businesses to accept online payments and has been a beneficiary of the e-commerce boom accelerated by the coronavirus pandemic. Customers include Amazon, Instacart, Salesforce and Lyft.
  • Stripe is "highly capital efficient" and didn't really need the money in spite of the fundraising, CFO Dhivya Suryadevara declared. "I view this as a bit more opportunistic," she said in an interview on Sunday. "It will just sit on the balance sheet," added Mike Moritz, partner at Sequoia and a Stripe board member, emphasizing that the money will be used as a "a rainy day fund." Some of the capital will also be invested in Stripe's European operations and its dual-headquarters in Dublin.
  • Outlook: While Stripe isn't focusing on an initial public offering right now, both Suryadevara and Moritz said the company will continue to seek out acquisitions. In December, the company branched out to offer checking accounts to businesses through e-commerce providers, inking partnerships with banks including Goldman Sachs and Citigroup.

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