| SAN FRANCISCO
SAN FRANCISCO Jan 22 Stripe Inc has joined the
The online payment-processing startup announced Wednesday it
raised $80 million from venture capital investors in a deal that
values Stripe at a hefty $1.75 billion.
The transaction places the 90-person firm in the rarefied
company of startups valued at more than $1 billion just three
years after brothers Patrick and John Collison, now ages 25 and
23, debuted their service.
Chief Executive Patrick Collison said the lofty valuation
reflected the promise shown by his company, which processed
billions of dollars in payments last year for businesses ranging
from Lyft, the ridesharing company, to the Museum of Modern Art
in New York. The company did not disclose specific details on
The startup's rapid growth has spurred talk in Silicon
Valley of an insurgent threat to PayPal Inc, the eBay Inc
subsidiary that has not faced serious competition in a
Stripe collects 2.9 percent of every transaction plus 30
"It's a nice validation of what everyone has gotten done
over the last year," Collison, who dropped out of the
Massachusetts Institute of Technology in 2009 to found Stripe,
said of the recent investment.
Collison dodged any direct comparison to PayPal, but he said
he was confident the demand for payment processing would only
explode in the coming years because only 2 percent of all
commercial transactions take place online today.
"There should be more transactions happening on the Internet
on a macro basis, whether you believe that should be 20 percent
or 40 percent," he said. "Well, what is holding it back? Our
goal is to expand Internet commerce. We approach that problem
rather than the competitive angle."
Stripe announced its funding on the day when activist
investor Carl Icahn called on eBay to spin-off PayPal, a
fast-growing unit that has thrived while eBay has grown at a
more modest pace in recent years.
PayPal's co-founder, Peter Thiel, who has backed Stripe
since its early days, led Stripe's most recent funding round
through his venture capital firm, the Founders Fund.
Stripe's other institutional investors include Sequoia
Capital, General Catalyst Partners and Khosla Ventures.