In April of 2020, San Francisco based online payment processing company Stripe did a round of funding that valued the company at $36 billion.
Now, thanks to trading on a secondary market, where stock of a private company can be sold after they were first issued, the valuation of Stripe has risen to an incredible $115 billion.
The company is also working on another primary round of funding in 2021, and the valuation when they talk to investors will be three times what it was a year ago. Over $100 billion.
Put Stripe squarely in the category of company’s that thrived during the pandemic, and with so many retail stores having to close down temporarily, online sales skyrocketed.
The company was founded in 2010, and if you ever build a website on Shopify, you’ll know that is the company that processes payments.
Peloton is another big client. The company makes money by taking a small fee on every transaction.
Forbes quoted Lisa Ellis, a partner and senior analyst at MoffettNathanson, an investment research firm who said back in 2019 Stripe processed between $200 billion and $250 billion in transactions. In 2020, Ellis said the company grew about 50%.
Her thoughts on the $115 billion valuation? “It’s nuts in the same way that all private valuations are nuts right now for anything in fintech,” she told Forbes.
“But given their competitive position, it’s not utterly insane.”