Stripe (company)

Stripe is an American financial services company headquartered in San Francisco, California. The company allows businesses to receive payments over the Internet.[2]

Stripe, Inc.
Type of businessPrivate
Founded2010 (2010)
HeadquartersSan Francisco, California
Area servedEuropean Union, Australia, Canada, Hong Kong, India, Japan, Malaysia, Malta, Mexico, New Zealand, Norway, Singapore, Switzerland, United Kingdom, United States
Private beta Brazil
Founder(s)
CEOPatrick Collison
Industry
ServicesPayments
Billing
Connect
Sigma
Atlas
Radar (fraud prevention)
Issuing
Terminal
Employees2,500+[1] (June 2020)
URLstripe.com
Current statusActive
Stripe's headquarters in San Francisco (2019)

History

Irish entrepreneur brothers John and Patrick Collison founded Stripe in 2010, initially using the name /dev/payments.[3][4][5]

Services

Payment processing

Stripe provides APIs that web developers can use to integrate payment processing into their websites and mobile applications.[6] According to the San Francisco Chronicle, Stripe succeeded by "[distilling] the complex, creaking infrastructure of online payments into a handful of lines of code that could be inserted into a clients website."[5]

In April 2018, the company released anti-fraud tools, branded "Radar", that block fraudulent transactions.[7]

In 2018, the company expanded its services to include a billing product for online businesses. The service operates within the Stripe platform, allowing businesses to manage subscription recurring revenue and invoicing.[8]

Connect

In 2012 Stripe launched Stripe Connect, allowing businesses to create platforms such as marketplaces where Stripe acts as the middleman for payment processing between buyers and sellers.[9]

Atlas

On February 24, 2016, the company launched the Atlas platform that allows startups to incorporate more easily in the U.S. The platform originally launched as invite-only.[10] In March 2016, Cuba was added to the list of countries covered under the program.[11] Atlas was relaunched with improvements the following year. As of April 2017, Atlas had signed more than 200 international startups.[12] As of March 2019, startups from 120 countries have used Stripe Atlas to start their business.[13]

On April 30, 2018, the company announced an expansion to Atlas. The upgrades to Atlas included the ability to be used to set up Delaware-based limited liability companies.[14]

Issuing

In July 2018, Stripe began a platform for companies to issue Mastercard and Visa credit cards, available in private beta.[15]

Terminal

On September 17, 2018, Stripe announced a new point of sale solution called Terminal, initially launched as an invite-only beta. The service offers physical credit card readers designed to work with Stripe.[16] Stripe currently works with two card readers: Verifone P400 and BBPOS Chipper 2X BT.[17] Terminal also includes detailed documentation along with SDKs for iOS, Javascript, and Android.[18] On June 11, 2019, Stripe made Terminal available to all U.S. users, ending the product's beta testing phase.[19][20]

Lending

Stripe ventured into lending in 2019, when it began offering loans and credit cards to businesses in the United States. The company stated that loans are approved automatically using machine learning models, with no human intervention.[21]

Growth

In June 2010, Stripe received seed funding from Y Combinator, a start-up accelerator.[22] In May 2011, Stripe received a $2 million investment from venture capitalists Peter Thiel, Sequoia Capital, and Andreessen Horowitz.[23] In February 2012, Stripe received an $18 million Series A investment, led by Sequoia Capital at a $100 million valuation.[24][25] Stripe launched publicly in September 2011 after an extensive private beta.[26] Less than a year after its public launch, Stripe received a $20 million Series B investment.[27] In March 2013, Stripe acquired the chat and task-management application Kickoff.[28]

In 2016, Stripe was valued at over $9 billion when it raised a $150 million round.[29] In its next funding round in September 2018, Stripe received a $20 billion valuation while raising $245 million.[30]

In 2019, Stripe raised an additional $100 million in a Series E round[31] from investment firm Tiger Global Management, boosting the payment startup's valuation to $22.5 billion.[32]

Stripe was founded in Palo Alto, but moved to San Francisco in 2012.[5] As of 2019, Stripe was operating across four engineering hubs in Seattle, Dublin, San Francisco and Singapore.[33] Stripe has its headquarters in San Francisco's South of Market (SoMa) area, but announced in October 2019 that it would be moving to Oyster Point in the neighboring city of South San Francisco at some point in 2021.[5]

In May 2020, Stripe expanded its services in 5 new markets in Europe: the Czech Republic, Romania, Bulgaria, Cyprus, and Malta.[34]

Funding History
Date Funding Type Number of Investors Money Raised Lead Investor Valuation
Aug 2, 2010 Seed Round 1 — Y Combinator —
Mar 28, 2011 Seed Round 4 $2M — —
Feb 9, 2012 Series A 1 $18M Sequoia Capital $100M
Jul 9, 2012 Series B 9 $20M General Catalyst —
Jan 22, 2014 Series C 4 $80M Founders Fund $1.75bn
Dec 2, 2014 Series C 7 $70M Thrive Capital $3.5bn
Jul 31, 2015 Series C 7 $100M — —
Nov 25, 2016 Series D 3 $150M CapitalG, General Catalyst $9bn
Sep 27, 2018 Series E 5 $245M Tiger Global Management $20bn
Jan 29, 2019 Series F 1 $100M Tiger Global Management $22.5bn
Sep 19, 2019 Series G 3+ $250M Sequoia Capital, General Catalyst and Andreessen Horowitz $35B
Apr 16, 2020 Series G Extension 3+ $600M Sequoia Capital, General Catalyst, GV and Andreessen Horowitz $36B[35]

Investments

Stripe is reported to have participated in two funding rounds for Monzo, a "challenger bank" based in the U.K. Stripe's first investment in Monzo was reported on November 6, 2017,[36] with a second investment in Monzo's Series E fundraising round reported on October 10, 2018.[37] Monzo's valuation grew from approximately $350 million[36] to $1.27 billion[37] through these two rounds of fundraising. Stripe participated in a third round of funding for Monzo on June 24, 2019, which raised approximately $144 million in funding for Monzo at a valuation of approximately $2.5 billion,[38][39] producing valuation growth of more than 600% between Stripe's initial investment in Monzo and its 2019 investment.

In 2018, Stripe, at the direction of its leadership, contributed $1 million to California YIMBY, a state-level pro-housing development lobbying organization.[40]

On August 28, 2018, TechCrunch reported that Stripe was leading the Series A fundraising round for Nigerian payment-processing company Paystack. The report noted this as an “interesting twist,” as Paystack is called “Stripe-like” and is reported to offer similar functionalities as Stripe's.[41]

On October 8, 2018, Stripe reportedly participated in a $14 million Series A fundraising round for Lambda School, an online software and coding school.[42]

On February 13, 2019, Stripe co-led—with Stripe investor General Catalyst—a $40 million Series B fundraising round for Rapyd, a “fintech as a service” startup.[43]

On April 17, 2019, Stripe participated in a $40 million Series B fundraising round for Pilot, which provides cloud-based accounting automation services powered by artificial intelligence.[44]

On June 6, 2019, Stripe led a $22.5 million fundraising round for Step, a financial services startup offering fee-free money management (banking) accounts to teenagers.[45]

On September 25, 2019, Stripe participated in the $2.7 million seed funding round for the Philippine-based payment processing company PayMongo.[46] In that same month, Stripe raised $250 million in a new funding round to take its enterprise value to $35 billion.[47]

On March 26th, 2020, Stripe led a $20m Series A fundraising round for Fast, a company creating a service for universal, one-click checkout.[48]

On April 16th 2020, Stripe announced a further investment of $600m, from new and existing investors as an extension fundraise, on the same terms as the Series G funding round in September.[49][50][51]

See also

References
  1. "Stripe: About page". stripe.com.
  2. "Inside Stripe, The PayPal Competitor Backed By PayPal Founders Peter Thiel, Elon Musk".
  3. "The Collison Brothers and Story Behind The Founding Of Stripe". Startup Grind. February 9, 2012. Archived from the original on April 7, 2014. Retrieved April 2, 2014.
  4. Brockman, Greg (April 2, 2014). "How Did Stripe Come Up With Its Name?". Forbes. Retrieved April 2, 2014.
  5. Li, Roland (2019-10-24). "2nd most valuable U.S. startup to leave SF as city loses another headquarters". San Francisco Chronicle. Retrieved 2020-03-17.
  6. Carr, Austin (February 1, 2012). "Inside Stripe, The Paypal Competitor Backed By Paypal Founders Peter Thiel, Elon Musk". FastCompany. Retrieved April 2, 2014.
  7. Lunden, Ingrid. "Stripe debuts Radar anti-fraud AI tools for big businesses, says it has halted $4B in fraud to date". techcrunch.com. Retrieved 2018-04-18.
  8. "Stripe launches a new billing tool to tap demand from online businesses". techcrunch.com. Retrieved 2018-04-26.
  9. "Improving Connect to enable more platforms". stripe.com. Retrieved 2020-06-24.
  10. "Stripe Expands Startup Tools With Atlas, For Foreign Companies To Incorporate In Delaware". TechCrunch. Retrieved 2018-05-01.
  11. "Stripe's startup toolkit Atlas opens for business in Cuba". TechCrunch. Retrieved 2018-05-01.
  12. "Stripe Opens Up Atlas for U.S. Startups". Bank Innovation. 2017-04-06. Retrieved 2018-05-01.
  13. "Atlas Overview | Stripe Atlas". stripe.com. Retrieved 2019-03-27.
  14. https://stripe.com/blog/atlas-llc
  15. Verhage, Julie; Huet, Ellen (26 July 2018). "Stripe Starts Issuing Credit Cards". Bloomberg News. Retrieved 28 July 2018.
  16. "Stripe Terminal". stripe.com. Retrieved 2018-11-20.
  17. "Stripe Terminal Readers". Retrieved 2019-10-18.
  18. "Stripe Terminal Overview (Docs)". stripe.com. Retrieved 2018-11-20.
  19. "Stripe Makes Terminal Available Across The US". PYMNTS.com. 2019-06-11. Retrieved 2019-06-14.
  20. "Stripe Terminal is now generally available in the US". stripe.com. Retrieved 2019-06-14.
  21. "Stripe launches Stripe Capital to make instant loan offers to customers on its platform". TechCrunch. Retrieved 2020-06-25.
  22. "Stripe Press resources".
  23. Arrington, Michael (March 28, 2011). "Stealth Payment Startup Stripe Backed By PayPal Founders". TechCrunch. Retrieved February 14, 2014.
  24. Mitroff, Sarah (9 February 2012). "Stripe attracts $18M in funding at $100M valuation". VentureBeat. Retrieved 14 February 2014.
  25. Warnimont, Joe (4 April 2018). "Stripe Review: Payment Processor with Advanced Development and Clear Pricing". Ecommerce Platforms. Retrieved 4 May 2018.
  26. "Stripe: instant payment processing for developers". Hacker News. 29 September 2011. Retrieved 14 February 2014.
  27. Tsotsis, Alexia (9 July 2012). "Sexy Payments Startup Stripe Swipes $20M From General Catalyst, Sequoia, Thiel And More". TechCrunch. Retrieved 14 February 2014.
  28. Rao, Leena. "Payments Company Stripe Makes First Acquisition, Buys Team Task Management And Collaboration App Kickoff". TechCrunch. Retrieved 16 January 2014.
  29. "Stripe expands its Atlas startup kit to let founders form LLCs". TechCrunch. Retrieved 2018-05-01.
  30. Vance, Ashlee (September 26, 2018). "Payment Startup Stripe Is Now a $20 Billion Company". www.bloomberg.com. Retrieved 2018-09-27.
  31. Fuscaldo, Donna. "Stripe Now Has A Valuation Of $35 Billion". Forbes. Retrieved 2019-11-02.
  32. Rooney, Ryan Browne,Kate (2019-01-30). "Stripe rides the online payments boom to a $22.5 billion valuation". CNBC. Retrieved 2019-08-06.
  33. Kim, Jay. "Now Worth $22.5 Billion, Stripe Is Ready To Tackle The Next Wave Of Online Commerce In Asia". Forbes. Retrieved 2019-08-06.
  34. "Stripe expands to 5 new markets". Ecommerce News Europe. Retrieved 2020-05-28.
  35. Lunden, Ingrid. "Stripe raises $600M at $36B valuation in Series G extension, says it has $2B on its balance sheet". TechCrunch. Retrieved 16 April 2020.
  36. "Challenger bank Monzo raises another £71M from Goodwater Capital, Stripe and Michael Moritz". TechCrunch. Retrieved 2019-06-14.
  37. "Monzo, the UK challenger bank, raises £85M Series E at a £1B pre-money valuation". TechCrunch. Retrieved 2019-06-14.
  38. Cook, James (2019-06-25). "Monzo's valuation hits £2bn as the digital bank raises £113m in fresh funding". The Telegraph. ISSN 0307-1235. Retrieved 2019-07-16.
  39. "Monzo, the UK challenger bank, raises £113M Series F led by YC's Continuity fund at a £2B post-money valuation". TechCrunch. Retrieved 2019-07-16.
  40. "Stripe gives $1 million to pro-development YIMBY group tackling Bay Area housing shortage". The Mercury News. 2018-05-03. Retrieved 2020-05-27.
  41. "Paystack, with ambitions to become the Stripe of Africa, raises $8M from Visa, Tencent… and Stripe itself". TechCrunch. Retrieved 2019-06-14.
  42. "Lambda School Raises $14M to Grow Coding School Offerings". EdSurge. 2018-10-08. Retrieved 2019-06-14.
  43. "Rapyd nabs $40M led by Stripe and GC for 'fintech as a service,' a single API for payments, money transfer and more". TechCrunch. Retrieved 2019-06-14.
  44. "Stripe Backs $40 Million Investment in A.I. Accounting Startup Pilot". Fortune. Retrieved 2019-06-14.
  45. "Step raises $22.5 million to help teens manage their money". VentureBeat. 2019-06-06. Retrieved 2019-06-14.
  46. "Manila-based payments processing startup PayMongo raises $2.7 million in seed funding". TechCrunch. Retrieved 2019-09-26.
  47. "Stripe funding round—US online payments company rakes in $250m". Business News Today. 2019-09-21. Retrieved 2019-09-22.
  48. "Stripe leads $20M Series A into Fast, which is building a universal checkout service for e-commerce". TechCrunch. Retrieved 2020-04-16.
  49. "Stripe Newsroom: Stripe extends Series G funding round". stripe.com. Retrieved 2020-04-16.
  50. Primack, Dan. "Digital payments platform Stripe raises $600 million and is valued at nearly $36 billion". Axios. Retrieved 2020-04-16.
  51. Rooney, Kate (2020-04-16). "Stripe, Silicon Valley's most valuable start-up, raises new capital at $36 billion valuation". CNBC. Retrieved 2020-04-17.
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