Stripe has just raised $80MM at a $1.75Bn valuation from the likes of Peter Thiel’s Founders Fund, Khosla (Keith Rabois) and existing investor Sequoia, along with Allen & Co. — who know a thing or two about payments (i.e. PayPal, Square, etc.). This brings Stripe’s total funding to ~$130 million, having just raised $20MM in 2012.
Stripe competes with PayPal/Braintree/Venmo, Square, etc. but there is obviously room in this space for many players. The key difference seems that PayPal is moving to an offline world and Stripe has no intention of that. In addition to international expansion, Stripe is building a platform that surrounds payments on the web and mobile, similar to the way Amazon Web Services (AWS) has changed how websites are build, according to John Collison.
We don’t know how much it processes, but it’s believed to be in the billions, with thousands of customers. It has also been expanding aggressively internationally, adding 10 countries in 2013 alone. They also aren’t disclosing revenue, but apparently 2013 was a big year. They already have clients like Lyft and Rackspace, and are alluding to deals with bigger companies in 2014 (Twitter being one of them).
The funding will be used for expanding international operations, hiring new country heads, and building out its engineering staff in the U.S. Stripe has ~85 employees, 22% are former founders and nearly 40% hail are from outside the U.S.
I’ve used Stripe before and everyone I know really likes the product (developers and users). So it’s exciting to see investor validation from some smart people in payments like Thiel, Rabois (formerly of Square, Slide, PayPal, etc.), and Moritz, and existing investors Andreesen Horowitz, Elon Musk, and Max Levchin. With a fresh round of funding, expect to hear a lot more from Stripe. Congrats!
Read the entire Techcrunch article here.