Stripe (company)

Stripe is an American financial services and software as a service (SaaS) company dual-headquartered in San Francisco, California and Dublin, Ireland.[2] The company primarily offers payment processing software and application programming interfaces (APIs) for e-commerce websites and mobile applications.[3]

History

Irish entrepreneur brothers John and Patrick Collison founded Stripe in 2010, initially using the name /dev/payments.[4][5][6] In March 2013, Stripe made its first acquisition, Kickoff, a chat and task-management application.[7] In 2012, the company moved from Palo Alto to San Francisco.[6] In October 2019, the company announced that it would be moving from the South of Market area to Oyster Point in the neighboring city of South San Francisco in 2021.[6]

Services

Payment processing

Stripe provides APIs that web developers can use to integrate payment processing into their websites and mobile applications.[8]

In April 2018, the company released anti-fraud tools, branded “Radar”, that block fraudulent transactions.[9]

In 2018, the company expanded its services to include a billing product for online businesses, allowing businesses to manage subscription recurring revenue and invoicing.[10]

On June 11, 2019, Stripe’s point of sale service, called Terminal, was made available to U.S. users. Terminal had previously been invite-only.[11] The service offers physical credit card readers designed to work with Stripe.[12][13] As of July 2020, Terminal supports two card readers: Verifone P400 and BBPOS Chipper 2X BT.[14]

Corporate finance

On February 24, 2016, the company launched the Atlas platform to help startups register as U.S. corporations. The platform originally launched as invite-only.[15] In March 2016, Cuba was added to the list of countries covered under the program.[16] Companies registered using Atlas can be Delaware-based C corporations, or, as of April 30, 2018, limited liability companies.[17]

In July 2018, Stripe began a platform for companies to issue Mastercard and Visa credit cards, available in private beta.[18]

Other

In 2018, Stripe started a publishing company named Stripe Press to promote ideas that support innovative businesses.[19]

In 2019, Stripe 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.[20]

In October 2020, Stripe announced Stripe Climate, a service for businesses to fund atmospheric carbon research and capture.[21]

Growth

In May 2011, Stripe received a $2 million investment from venture capitalists Peter Thiel, Sequoia Capital, and Andreessen Horowitz.[22] Stripe launched publicly in September 2011 after an extensive private beta.[23]

In May 2020, Stripe expanded its services in 5 new markets in Europe: the Czech Republic, Romania, Bulgaria, Cyprus, and Malta.[24]

On October 15, 2020, Stripe acquired Paystack, a Nigerian payment processor, in a deal reportedly worth over $200 million with the aim of expanding its services into Africa.[25][26][27]

In December 2020, Stripe announced plans to expand in Southeast Asia (SEA), China, India, and Japan. It increased its staff in the region by 200 employees.[28]

Funding History
Date Funding Type Number of Investors Money Raised Lead Investor Valuation
Aug 2, 2010 Seed Round 1 Y Combinator [29]
Mar 28, 2011 Seed Round 4 $2M
Feb 9, 2012 Series A 1 $18M Sequoia Capital $100M[30][31]
Jul 9, 2012 Series B 9 $20M General Catalyst [32]
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[33]
Sep 27, 2018 Series E 5 $245M Tiger Global Management $20bn[34]
Jan 29, 2019 Series F 1 $100M Tiger Global Management $22.5bn[35]
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[36]

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,[37] with a second investment in Monzo’s Series E fundraising round reported on October 10, 2018.[38] Monzo’s valuation grew from approximately $350 million[37] to $1.27 billion[38] 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.[39][40]

Stripe has invested in companies offering similar services as themselves, but in different geographical regions. In August 2018, Stripe invested in Paystack, a Nigerian payment processor,[41] and, in September 2019, invested in PayMongo, a Philippine payment processor.[42]

On June 6, 2019, Stripe led a $22.5 million fundraising round for Step, a financial services startup offering fee-free bank accounts to teenagers.[43]

On March 26th, 2020, Stripe led a $20 million Series A fundraising round for Fast, a company creating a universal, one-click checkout service.[44]

References

  1. ^“Stripe: About page”. stripe.com.
  2. ^“Stripe: About page”. stripe.com.
  3. ^“Inside Stripe, The PayPal Competitor Backed By PayPal Founders Peter Thiel, Elon Musk”.
  4. ^“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.
  5. ^Brockman, Greg (April 2, 2014). “How Did Stripe Come Up With Its Name?”. Forbes. Retrieved April 2, 2014.
  6. ^ Jump up to:ab c 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.
  7. ^Rao, Leena. “Payments Company Stripe Makes First Acquisition, Buys Team Task Management And Collaboration App Kickoff”. TechCrunch. Retrieved 16 January 2014.
  8. ^Carr, Austin (February 1, 2012). “Inside Stripe, The Paypal Competitor Backed By Paypal Founders Peter Thiel, Elon Musk”. FastCompany. Retrieved April 2, 2014.
  9. ^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.
  10. ^“Stripe launches a new billing tool to tap demand from online businesses”. techcrunch.com. Retrieved 2018-04-26.
  11. ^“Stripe Terminal”. stripe.com. Retrieved 2018-11-20.
  12. ^“Stripe Makes Terminal Available Across The US”. PYMNTS.com. 2019-06-11. Retrieved 2019-06-14.
  13. ^“Stripe Terminal is now generally available in the US”. stripe.com. Retrieved 2019-06-14.
  14. ^“Stripe Terminal Readers”. Retrieved 2019-10-18.
  15. ^“Stripe Expands Startup Tools With Atlas, For Foreign Companies To Incorporate In Delaware”. TechCrunch. Retrieved 2018-05-01.
  16. ^“Stripe’s startup toolkit Atlas opens for business in Cuba”. TechCrunch. Retrieved 2018-05-01.
  17. ^https://stripe.com/blog/atlas-llc
  18. ^Verhage, Julie; Huet, Ellen (26 July 2018). “Stripe Starts Issuing Credit Cards”. Bloomberg News. Retrieved 28 July 2018.
  19. ^“Stripe Blog: Stripe Press”. Stripe Blog. Stripe. Retrieved 23 December 2020.
  20. ^“Stripe launches Stripe Capital to make instant loan offers to customers on its platform”. TechCrunch. Retrieved 2020-06-25.
  21. ^“Stripe Climate is a new tool to let Stripe customers make carbon removal purchases”. TechCrunch. Retrieved 2020-10-28.
  22. ^Arrington, Michael (March 28, 2011). “Stealth Payment Startup Stripe Backed By PayPal Founders”. TechCrunch. Retrieved February 14, 2014.
  23. ^“Stripe: instant payment processing for developers”. Hacker News. 29 September 2011. Retrieved 14 February 2014.
  24. ^“Stripe expands to 5 new markets”. Ecommerce News Europe. Retrieved 2020-05-28.
  25. ^“Stripe acquires Nigeria’s Paystack for $200M+ to expand into the African continent”. TechCrunch. Retrieved 2020-10-15.
  26. ^Kene-Okafor, Tage (2020-10-15). “Paystack has been acquired by Stripe in a deal rumoured to be around $200m”. Techpoint Africa. Retrieved 2020-10-15.
  27. ^“Stripe buys Nigeria’s Paystack”. Finextra Research. 2020-10-15. Retrieved 2020-10-15.
  28. ^Nunez, Adriana. “Stripe is planning to expand its business in Southeast Asia, China, India, and Japan”. Business Insider. Retrieved 2020-12-14.
  29. ^“Stripe Press resources”.
  30. ^Mitroff, Sarah (9 February 2012). “Stripe attracts $18M in funding at $100M valuation”. VentureBeat. Retrieved 14 February 2014.
  31. ^Warnimont, Joe (4 April 2018). “Stripe Review: Payment Processor with Advanced Development and Clear Pricing”. Ecommerce Platforms. Retrieved 4 May 2018.
  32. ^Tsotsis, Alexia (9 July 2012). “Sexy Payments Startup Stripe Swipes $20M From General Catalyst, Sequoia, Thiel And More”. TechCrunch. Retrieved 14 February 2014.
  33. ^“Stripe expands its Atlas startup kit to let founders form LLCs”. TechCrunch. Retrieved 2018-05-01.
  34. ^Vance, Ashlee (September 26, 2018). “Payment Startup Stripe Is Now a $20 Billion Company”. www.bloomberg.com. Retrieved 2018-09-27.
  35. ^Rooney, Ryan Browne,Kate (2019-01-30). “Stripe rides the online payments boom to a $22.5 billion valuation”. CNBC. Retrieved 2019-08-06.
  36. ^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.
  37. ^ Jump up to:ab“Challenger bank Monzo raises another £71M from Goodwater Capital, Stripe and Michael Moritz”. TechCrunch. Retrieved 2019-06-14.
  38. ^ Jump up to:ab“Monzo, the UK challenger bank, raises £85M Series E at a £1B pre-money valuation”. TechCrunch. Retrieved 2019-06-14.
  39. ^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.
  40. ^“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.
  41. ^“Paystack, with ambitions to become the Stripe of Africa, raises $8M from Visa, Tencent… and Stripe itself”. TechCrunch. Retrieved 2019-06-14.
  42. ^“Manila-based payments processing startup PayMongo raises $2.7 million in seed funding”. TechCrunch. Retrieved 2019-09-26.
  43. ^“Step raises $22.5 million to help teens manage their money”. VentureBeat. 2019-06-06. Retrieved 2019-06-14.
  44. ^“Stripe leads $20M Series A into Fast, which is building a universal checkout service for e-commerce”. TechCrunch. Retrieved 2020-04-16.

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