Todor Kostov's avatar
$7.1m follower assets
Stripe valuation reset
  • Stripe has raised more than $6.5bn yesterday at about half the valuation it carried 2 years ago
  • Funds were provided by existing investors in the company including Peter Thiel’s Founders Fund, Josh Kushner’s Thrive Capital, and Andreessen Horowitz. New backers were two Singaporean investors, state fund Temasek and sovereign wealth fund GIC
  • New capital raised will meet billions of dollars of tax liabilities associated with employees’ stock units
  • New valuation of $50bn, almost 50% below peak of $95b in 2021
  • Current valuation is c.3.5x times last year’s gross revenue

Highly unlikely now for the company to pursue an IPO in 2023, under current market conditions IMHO.

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Source: The Org

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Source: Reuters

Ben's avatar
Wonder if they regret not going public in ‘21?
Todor Kostov's avatar
@rpinvestments Might have been their best chance. Who knows ...
Nathan Worden's avatar
@rpinvestments I regret them not going public in 2021... because then I'd be able to buy their stock now!

Ok but actually I probably would have bought it in 2021 and be sitting on a loss now, so there's that.
Todor Kostov's avatar
@nathanworden 2021 its' over now. We move on forwards.
Ben's avatar
@nathanworden truth. Same
Steve Matt's avatar
My interest in Stripe has waned but the S-1 could revive it. Still really excited to read through the S-1 for Databricks whenever it comes out. Was hoping for 2023 but I'd expect 2024 now.
Todor Kostov's avatar
@interrobangbros Definitely, Databricks is on my list as well.
Dave Ahern's avatar
Thanks for sharing @kostofff I remember reading earlier this year that they were lowering their valuation, but didn't realize it was quite that much. It appears the hype around the company was bigger than the actual execution at this point. I know comparisons still abound in relation to $ADYEY, but they aren't as profitable as $ADYEY at this point. Will be interesting to read their S-1, if and when it goes public.
Todor Kostov's avatar
@ifb_podcast Yes, slightly different business model to Adyen $ADYEY. I am also keen to look into their prospectus once they decide to go public.
Joshua Simka's avatar
Impressive to see that they can raise so much (relatively) money at half their former valuation. Seems like we'll have to keep waiting for a chance to ride this train.
Todor Kostov's avatar
@tomato The vicious roller coaster.
Conor Mac's avatar
Good that they managed to raise and pump fresh cash into the business.
Todor Kostov's avatar
@investmenttalk They needed these funds to cover the tax liabilities.



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