Stripe Joins Silicon Valley Elite Valued at $35 Billion
Stripe, a Fintech firm, exceeds Airbnb and Palantir valuation in the recent valuation.
FREMONT, CA: Stripe, a financial technology company, is the latest to join Silicon Valley Elite after being valued at $35 Billion in a new fundraising round.. Sequoia Capital, General Catalyst, and Andreessen Horowitz wereStripe's main investors with about $250 million investment. The $35 billion valuation, up about 50 percent of the $35 billion valuation comes from an early 2019 funding round, which placed Stripe above the Silicon Valley favorites Airbnb, Inc. and Palantir Technologies Inc.
The technology used by Stripe enables the internet firms and online marketplaces to accept credit cards for their goods and services, and payout money to the users and firms that sell on their platforms. It processes billions of dollars in payments annually for millions of users, comprising of consumer apps and websites such as Airbnb and The RealReal Inc., and also makers of business software like GitHub Inc. and Twilio Inc.
Venture capitalists view payments firms like Stripe as a way to get exposure among fast-growing public and private tech companies. Stripe's revenues are tied to its customers' growth. The market for the payment services is also expanding as the commerce platform moves away from physical stores more towards a digital space.
Stripe, founded in 2010, has raised around $1.2 billion over the past years. The firm is using the data that is collected through payments from the company builds its financial services. Recently, the company made an announcement regarding the issue of credit cards with cashback rewards, and lending money to businesses that can process their online payments through Stripe, determining the creditworthiness of the business by noting the percentage of sales that are coming from repeat and loyal customers.