Wtf Stripe?

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Sep 26, 2018 8 Comments

How can the CEO take $245M in new funding and yet claim they won’t go public? Why would they claim they’re doing super well and then take that giant hit in dilution? I would be so disappointed if I worked there. Worthless equity. Quote below from their CEO:

“We have no plans to go public," said John Collison in an interview. "We're fortunate to be in the position that the Stripe business is performing very well and the long-term opportunity is that we're very optimistic to providing the richer stack to businesses. Strong businesses do not always tend to be dependent on outside funding."

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TOP 8 Comments
  • Google qsqt04
    The answer is obvious - money is cheap as hell right now, stripe clearly has a huge amount of runway (and could easily get more cash), and going public is a massive headache in terms of time and money

    Yes it’s non ideal in terms of employee liquidity but clearly they’re weighting the above as more important. One could argue in the medium/long term that the focus on growth over liquidity will be net better for employees but obviously hard to know for sure.
    Sep 26, 2018 1
    • Snapchat Hnsb54
      Money won’t be cheap as hell forever. Better to at least plan for an IPO before that window shuts. What do you think would happen if they were forced to go public for a price less than their last funding round?
      Sep 26, 2018
  • Yelp mYaJ13
    $245M raise on a $20B valuation is not massive dilution
    Oct 3, 2018 0
  • New aLuu55
    Stripe’s valuation just doubled from previous valuation. Stripe employees are pretty happy.
    Sep 26, 2018 2
    • Palantir pokéball
      I guess if someone’s to join stripe around now, they’d get a much “worse” deal in terms of equity compared to people who joined months earlier, correct?
      Sep 29, 2018
    • Verizon Media Atingay
      Um if they joined in 2018 they would've had a damn good deal
      Sep 21
  • Square
    KyleQ

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    KyleQmore
    What was previous 409a? What is current 409a? If latter is higher than former, employees are happy.
    Sep 26, 2018 1
    • Snapchat Hnsb54
      Paper money is worth the paper it’s printed on. Liquidity is king
      Sep 26, 2018

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