Is stripe going to IPO?
News that Stripe was considering an IPO in 2022, was initially released by Bloomberg earlier in year 2021. Additionally, Crunchbase names Stripe as probably the most anticipated fintech listing for 2022. However, it seems that at the moment the focus of the digital payments fintech is on expanding its global reach.
|Fintech||2010||San Francisco, US||$95B|
Here’s what you need to know:
- What is an IPO?
- What is Stripe?
- How to buy Stripe IPO stock? – instructions, list of available brokers
- IPO details – Stripe IPO date, price etc.
- What brokers provide access to the Stripe IPO?
What is an IPO?
When a private company or a startup first sells its shares to the general public, this process is known as an Initial Public Offering (IPO). An IPO means that a company's ownership is transferred from private ownership to public ownership. That is why the IPO process is called "going public".
Why go public? The primary benefit of going public is easier access to capital, but there are more reasons for that. If you want to learn more - here we answered frequently asked questions about IPOs in simple terms.
What is Stripe?
Stripe is a technology company building economic infrastructure for internet to accept payments and send payouts globally. It is a payment service provider that business owners of various size can use to accept dozens of payment methods. Stripe’s products power payments for a wide range of businesses including online and in-person retailers, software platforms and marketplaces and subscription businesses and it also helps companies to issue virtual and physical cards, send invoices, get financing, manage revenues and prevent fraud, etc.
Stripe business details and financials before IPO
Stripe is a major payment company which builds economic infrastructure for the internet. At the time being it has grown to become the second most valuable private startup in the US but still some experts claim that it is still deeply undervalued.
In a decade, Stripe has gone from accepting payments, which is now a commodity business, to providing an increasingly comprehensive suite of products that make it easy to start and run an online business. In 2021, Stripe launched revenue recognition to simplify accounting and to automate bookkeeping, it also acquired Recko which helps businesses automatically reconcile payments. It also expanded the number of payment terminals across Europe.
Stripe has a $95 billion valuation. It became the most valuable private fintech company after a round of fundraising in March 2021. It has almost tripled in value since April year 2020. The company has raised $2.3 billion in total funding across 18 funding rounds for a $24.1 k valuation.
According to some experts, after the IPO, the company may get worth anything from $45B to $100B. Despite the already far-reaching goal, the company still has some room for growth. Thus, in 2020, Stripe acquired Paystack, a Nigeria based payment service provider, the acquisition deal being worth $200M.
Meanwhile, the Collinson brothers' fortune is around $4.30B, they being among the top 10 youngest billionaires, as reported by Forbes USA.
A few major investors of Stripe is Sequoia Capital, General Catalyst and Andreessen Horowitz. Full list of investors see here.
Stripe’s customers include large tech companies such as Instacart, Shopify, Google, Slack, Zoom, Lyft, Amazon and Salesforce.
Stripe Prospectus SEC S-1 form
Not available yet.
Stripe's top competitors include Adyen, Klarna, Checkout.com, Square and PayPal.
Is Stripe Stock Publicly Traded?
No, Stripe is a privately owned company now. It belongs to founders, venture capital firms and other financial and capital market participants.
Stripe's Key People
Stripe's Co-Founders are Patrick Collinson (CEO) and John Collison (President). The key executives of Stripe are Dhivya Suryadevara (CFO), William Alvadaro (CBO), David Singleton (CTO) and William Gaybrick (CPO).
Stripe's pre-IPO Investors
Stripe's top pre-IPO investors are – Y Combinator, Andersson Horowitz, General Catalyst, Tiger Global Management, Allianz X, Axa, Baillie Gifford, Fidelity Management & Research Company, Sequoia Capital, and Ireland’s National Treasury Management Agency. One of Stripe's investors was Elon Musk.
Stripe Funding Timeline
- Aug 2010 Y Combinator Seed
- Mar 2011 Andreessen Horowitz SV Angel Sequoia Capital Founders Fund Peter Thiel Elon Musk $2m Seed
- Feb 2012 Sequoia Capital $18m Series A
- Jul 2012 Red point General Catalyst Partners Sequoia Capital Founders Fund American Express Ventures Aaron Levie Peter Thiel Elad Gil Chris Dixon
$20m Series B
- Jan 2014 Playfair Capital Sequoia Capital Founders Fund Allen & Company Khosla Ventures $80m Series C
- Dec 2014 General Catalyst Partners Thrive Capital Sequoia Capital Designer Fund Founders Fund Khosla Ventures $70m Series C
- Jul 2015 Playfair Capital Kleiner Perkins Sequoia Capital Paua Ventures American Express Ventures Square Peg Capital American Express Visa $100m Series C
- Nov 2016 General Catalyst Partners Sequoia Capital Capital G $150m Series D
- Sep 2018 Tiger Global Management Kleiner Perkins Thrive Capital Sequoia Capital DST Global $245m Series E
- Jan 2019 Tiger Global Management $100m Series E
- Sep 2019 General Catalyst Partners Andreessen Horowitz Sequoia Capital $250m Series F
- Apr 2020 General Catalyst Partners Andreessen Horowitz Sequoia Capital GV
$600m Series G
- Feb 2021 unknown Secondary
- Mar 2021 XA Sequoia Capital Fidelity Baillie Gifford National Treasury Management Agency (NTMA)Allianz X $600m Series H
- Jun 2021 Silver Lake Partners Sequoia Capital Shopify Capital Group Private Markets $1.0b Secondary
Stripe itself has made 46 investments. Their most recent investment was on Dec 9, 2021, when Burrata raised $7.8M.
Investments by Stripe
- Burrata Estimated valuation of $31—47m
- Monzo Latest valuation of $4.5b
- OpenChannel ACQUISITION by Stripe Dec 2021
- SendOwl Estimated valuation of $18—27m
- Fireblocks Latest valuation of $8.0b
- Imprint Estimated valuation of $152—228m
- Archive.ai Estimated valuation of $16—24m
- XFlow Estimated valuation of $24—36m
- Clear (formerly ClearTax) Latest valuation of $750m
- Recko.io ACQUISITION by Stripe Oct 2021 Estimated valuation of $24—36m
How to Participate in Stripe IPO Before Shares Hit the Public Market
In the past, Initial Public Offerings as a profitable investment type were only available to big funds or elite customers of major brokerage firms or banks and it was hard (almost impossible) for retail investors to gain access to IPOs. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market.
Luckily, technologies and marketplaces changed the rules of the game, now average investors can participate in IPOs. Brokers adjusted accordingly, making access to IPOs more affordable now.
Step-by-Step Guide How to Buy Stripe IPO Stock at Its Offer Price
- Check the Stripe IPO details. Always Do Your Own Research (DYOR) for the company that is going for IPO first.
- Find a broker. You need a broker that can provide you access to the IPO. You can use our tool attached below that helps to match investors with available IPO brokers in your area. Just click "FIND IPO BROKERS" button below to see brokers that offer access to Stripe IPO.
- Check eligibility criteria. Each broker has its own eligibility criteria, like account minimum which can vary widely
- Create trading account. For KYC you need to prepare your identity document (valid passport or driving license) and a document confirming the address of residence (utility bill). Note, this procedure may take 1-3 days as it's better to prepare your account in advance.
- Deposit your account. To participate in an IPO, your account must have available funds in the amount you send IPO application for. Note, this procedure may take 1-3 days as it's better to prepare your account in advance.
- Request Stripe shares. Assuming you meet the requirements for participating in this IPO, your next step will be to request a certain number of shares in the IPO. Note, you may not be allocated all the IPO shares you offer to buy.
- Wait for allocation. The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
Note: Many IPO purchases come with a lock-up period, usually 90 or 180 days. You will not be able to sell your shares until this period expires.
What Brokers Offer Access to Stripe IPO?
Here you can check the list of available IPO brokers that can provide access to Stripe IPO.
How to Invest After the IPO at Its Opening Price
The most conservative way to buy Stripe stock would be to wait for the IPO and buy the shares on the public stock market. You can do this through the same brokers that provide access to IPOs. Most of them have a stock trading functionality. Though, you won’t get in at the low price offered by pre-IPO.
How is Stripe going public?
Stripe has not yet made an announcement whether it goes public via a traditional initial public offering, SPAC or DPO.
When will be the Stripe IPO date?
Stripe IPO date will be published here when the insormation is available. Stay tuned!
What will be the Stripe IPO price?
Stripe IPO price range is not defined yet.
How many Stripe shares will be available for its IPO?
Stripe's number of shares is not defined yet.
What stock exchange will Stripe trade on?
Stripe will be traded on - we will publish stock exchange here when known.
What Is the Stripe Stock Ticker?
Stripe stock symbol is not defined yet.
Stripe IPO news and updates:
November 24, 2021 - Stripe open to accepting crypto for payments again