Most valued company in the US

Although Stripe isn’t a consumer-focused company, and it doesn't have a celebrity CEO like SpaceX, Stripe has silently grown into the most valued startup in the US. In March, it raised a Series F funding round of $600MM, knocking SpaceX from the perch of US private start-up with the highest valuation. 

Background
Stripe is a software startup that develops a range of products to allow businesses to accept and make payments over the Internet. The company was founded in 2010 by brothers Patrick and John Collison, and both are listed as billionaires on the Forbes Richest People in the World list. The company makes most of its revenue through standard charges of a 2.9% variable fee and a $0.30 fee per successful transaction processed. In addition, Stripe has been diversifying its product offerings, ranging from subscription billing and premium customer service capabilities to data warehousing and incorporation support services.

Success early on
Although the pandemic has benefited Stripe tremendously as shopping shifted online during the lockdown, the company had enjoyed success long before partnering with companies of all kinds, from small startups to large cororporation such as Amazon and Google. Moreover, the Collison brothers were prescient early on to woo angel investors in Silicon Valley like PayPal co-founders Peter Thiel and Elon Musk.

Investor on the side
Not only has Stripe been actively making a business for itself, but it has also invested heavily back into the market. The company has made seven large investments in the past 12 months, including one in April worth $115MM to corporate card fintech startup Ramp, as well as acquired payment processing startup Paystack in October last year.

Future of fintech
Digital commerce covers over 50% of the value of transactions in 2020. The growth of digital payments is projected at an annual rate of 13.4% by 2024, to reach $8.170TN. It is safe to say that Stripe has not yet hit a ceiling, confirming rumors that the company will likely be the largest IPO yet. 

Read our detailed report for a more in-depth look at Stripe’s business model and its main competitors.