Online payments processor Stripe’s IPO (initial public offering) is one of the most anticipated listings in the tech industry.
The company made its first steps to go public in 2021. And with a projected valuation of $74 billion, Stripe is on track to debut among the biggest IPOs in history.
But how does a retail investor go about investing in an IPO like Stripe, especially if they make a direct listing?
Find out more about what could be one of the hottest IPOs and how to buy Stripe stock on Public.com if it lists on the stock market.
Table of Contents:
- Key Takeaways
- What is Stripe?
- When is the Stripe IPO date?
- How much is Stripe worth?
- Why does Stripe’s IPO stand out?
- How to invest in the Stripe IPO
- Strength and opportunities of Stripe IPO
- Weaknesses and risks of Stripe IPO
- Stay informed on the Stripe IPO
- Frequently asked questions about Stripe IPO
- Two Irish brothers, Patrick and John Collison, founded Stripe in 2010.
- Millions of businesses across the world use Stripe to manage payment services. It also offers loans, tax assistance, and buy now, pay later plans with partner companies.
- Stripe registered its plans to go public with the SEC but an exact IPO date has not yet been published.
- Stripe’s value was lowered to $74 billion from $95 billion. It’s still anticipated as being one of the largest IPOs.
What is Stripe?
Stripe is a payment processing firm and it’s considered one of the most valuable technology startups. Brothers Patrick and John Collison created the private company in 2010. It has headquarters in both Dublin, Ireland, and San Francisco, California.
Stripe’s core product is payment processing, and scores of e-commerce businesses use it—including the most recognizable names. From startups to Fortune 500 companies, some of Stripe’s customers include Zapier, Slack, Google, Instacart, Amazon, and Shopify. Businesses in over 120 countries use Stripe to help facilitate commerce and growth.
When Is the Stripe IPO Date?
Will Stripe go public this year? We don’t know yet. Stripe is expected to go public sometime soon, although no date has been set. The company filed its intentions to go public with the Securities and Exchange Commission (SEC) in July 2021.
Some say due to its massive valuation, Stripe doesn’t need the capital and could pursue a direct listing instead of a traditional IPO. A direct listing involves offering current investors the chance to sell shares without being bound by a lockup period. A traditional IPO on the other hand, is when a company going public works with investment banks to sell its shares on a stock exchange via institutional investors.
Retail investors interested in buying shares of Stripe, once it’s publicly traded, or other companies that list on the stock market can do so through most brokerage firms.
Public is working toward an IPO allocation offering. Our Public Live shows cover the latest IPOs so you can find out about any upcoming IPOs. And with Public Premium you can get access to advanced business metrics on public companies.
How Much is Stripe Worth?
Stripe lowered its valuation to $74 billion from $95 billion due to a 408A valuation, which is an external third-party evaluation.
The company has had a number of fundraising rounds, with the most recent being last year in March 2021, when it raised $600 million from a number of companies including Sequoia Capital, Allianz X and Fidelity, among others. Here’s a full list:
- Seed Round: From Y Combinator in August 2010
- Seed Round: In 2011, Stripe held a $2 million seed funding round led by Sequoia Capital.
- Series A: In February 2012, the Series A from Sequoia Capital was worth $18 million.
- Series B: Sequoia Capital, Redpoint Ventures, Founders Fund, and others invested $20 million in July 2012.
- Series C: January 2014 was a Series C for $80 million.
- Series C: Investors added $70 million more in December 2014.
- Series C: Stripe raised another $100 million in July 2015.
- Series D: In November 2016, Stripe raised another $150 million. Leading this investment round were CapitalG and General Catalyst.
- Series E: The company’s Series E took place in three steps starting September 2018. Proioxis Ventures Fund, Tiger Global Management and others brought in $345 million.
- Series G: Stripe conducted a dual-part Series G funding round starting in September 2019. Andreessen Horowitz, General Catalyst, and others brought in $850 million.
- Venture Round: They raised $1 million in May 2020.
- Series H: Stripe underwent a $600 million funding round that brought the company’s pre-money valuation to $94.4 billion.
- Venture round: They received an undisclosed amount in June 2021.
- July 14, 2022: Stripe slashed the internal value of its shares by 28%, lowering its value to $74 billion.
Why Does Stripe’s IPO Stand Out?
Stripe’s IPO is one of the most anticipated listings in a while, mostly due to its high valuation, although its value was slashed by 28% recently. The COVID-19 pandemic also fueled its growth, with many businesses turning to Stripe to fill their sudden need to build online payments capabilities.
The payment platform is designed for any company to be able to use and scale as needed. Within the payments processing, Stripe offers revenue management apps, fraud prevention, and a cloud-based infrastructure. It also offers BNPL (buy now, pay later) services.
Other business segments the company has been focusing on include additions of new programs such as Stripe Identity and Stripe Tax. Stripe has also been actively investing in other fintech startups and has taken on a few acquisitions of its own. It has invested in corporate card issuer Ramp and teen-focused payments and banking app Step. Other investments this year have been in Pico, Safepay, Accord, and Balance.
How to Invest in the Stripe IPO
If you want to invest in Stripe, you can do so when and if it goes public. Once it’s publicly listed, you can buy shares of Stripe during stock market open hours the same way you would buy shares of any other public company.
First, you should make sure you want to invest in Stripe by analyzing their financial history and reports that become available after a company goes public. With Public’s Premium offering, you can get access to advanced business metrics on many public companies and follow their financial performance, market cap and valuation, and growth metrics as the company progresses.
While its financial statements are currently private, once it goes public, Stripe will have to publish its financial statements every quarter. These statements will give insight into Stripe’s cash flow, financial position, and potential financial risks, such as pending lawsuits.
Once you’ve decided whether or not to invest in Stripe when it’s listed, you can buy stock through the Public.com app.
Public is working on an IPO allocation offering and members can join the waitlist to be notified about upcoming IPO allocations through Public.
To buy shares of a company:
- Sign into the Public app or website and look up the company you want to buy stock in.
- Make sure you have funds in your account.
- Decide how much you want to buy and then place your order.
Strength and Opportunities of Stripe IPO
- Market remains largely untapped, with room for plenty of growth. The online payment industry is still booming, with many transactions switching to digital instead of paper even as life gets back to normal.
- History of strong leadership. Plus, it doesn’t only offer payment processing, but a host of other valuable services to diversify its product line. That trajectory is bound to continue.
- One of the most valued startups in the U.S. About 964,894 websites currently use Stripe, including many top brands like Slack, Xero, Deliveroo, Ford, and more.
Weaknesses and Risks of Stripe IPO
- Generates a large amount of business through Shopify, and the company’s dependence on it could be a problem.
- Stripe’s enormous valuation means the company would need to prove it can continue to grow post-IPO, as we’ve seen with other public companies. Its large valuation could actually deter some investors away, as it could fall when it debuts on the stock market. It was also recently devalued from $95 billion to $74 billion, which could give some investors pause.
- There is a lot of volatility with an IPO. Investing is risky, so if you want to invest in Stripe’s IPO, make sure to do your own research and seek out the investment advice of a professional before investing in the stock market.
Stay Informed on the Stripe IPO Date
Stripe holds a strong segment of the payments-processing market in spite of competition from the likes of PayPal, WePay, and Square. It has steadily grown to attain one of the largest valuations in the fintech space and across all company types.
Keep an eye out for what may be a largeIPO, possibly in the near future and be sure to join Public if you want to be informed about new IPOs.
Frequently asked questions about Stripe IPO
Is stripe going public in 2022?
Stripe is rumoured to go public in 2022 and registered its intention to go public in 2021. It’s expected to list on the stock market by the end of 2022, but no date has been announced yet.
Can I buy stripe pre-IPO?
Because it’s private, the average retail investor is generally unable to buy pre-IPO stock.You can buy Stripe pre-IPO shares with pre-IPO listings that are sold privately before the company lists on Nasdaq or another stock exchange.
What is the Stripe’s ticker (stock symbol)
Stripe is privately held, which means its shares can’t be traded on the public stock market and there is no stock ticker and no stock price.
Can I invest in stripe stock?
Yes, you can invest in Stripe shares if it goes public through a brokerage account such as an account at Public. Until then, the company remains private and unavailable to retail investors.
What is Stripe’s current valuation?
Stripe valuation was dropped to $74 billion from $95 billion as of July 14, 2022 as the value of publicly traded companies continues to fall amid economic and political uncertainty.