STRIPE

Investment Tagline: Leading global payment infrastructure platform powering over $1 trillion in annual payments for millions of businesses worldwide

ABOUT STRIPE

Stripe is a globally renowned fintech company operating as a payment infrastructure platform, providing online businesses with secure and efficient payment solutions. Founded in 2010 by Irish-born brothers Patrick and John Collison through Y Combinator, Stripe has emerged as a key player in the online payments market, supporting payments on more than 3 billion websites since launching. With developer-friendly APIs, Stripe enables seamless integration of payment systems into websites and applications.

Stripe processes payments exceeding $1 trillion annually, equivalent to 1% of global GDP as of 2023, with a 17% global market share, ranking as the second-largest payment processor after PayPal (42%). The company has evolved from a simple payment processor into a comprehensive financial services platform, introducing subscription billing, Atlas for startups, Stripe Connect for marketplaces, Radar for fraud prevention, and banking-as-a-service capabilities.

As of FY2023, Stripe reported annual revenues of $18 billion (12.5% YoY increase) and an operating profit of approximately $500 million, positioning it ahead of peers such as Adyen, Klarna, and Block. With 7,000+ employees operating across 46 countries, the company's valuation grew from $1.75 billion in 2014 to a peak of $95 billion in March 2021, recovered from a 2023 low of $50 billion to $91.5 billion (February 2025), with a Caplight valuation of $112.2 billion representing a 23% premium.

MAIN SOLUTIONS/PRODUCTS

KEY INVESTMENT FEATURES

• Dominant Market Position: Stripe processes over $1 trillion annually (1% of global GDP) with a 17% global market share, ranking second after PayPal. The platform has supported 3 billion websites since launching, serving millions of businesses from startups to Fortune 500 companies including Amazon, Google, Microsoft, Shopify, Walmart, IBM, Lyft, and Wayfair.
• Strong Financial Performance: Stripe reported $18 billion in revenue for FY2023 (12.5% YoY growth) with approximately $500 million in operating profit, demonstrating sustainable profitability. Revenue grew at a 37% CAGR from $7 billion in 2020 to $18 billion in 2023, ahead of competitors like Adyen, Klarna, and Block.
• Impressive Valuation Recovery: Stripe's valuation rebounded from $50 billion (May 2023) to $91.5 billion (February 2025), with the Caplight valuation at $112.2 billion (23% premium). Stripe's +47% recovery significantly outpaced publicly listed fintech rivals including Fiserv (+37%), Square (+4%), PayPal (-21%), and Adyen (-22%).
• Technology Leadership: Forrester Research awarded Stripe the highest possible score in 16 criteria, including payment onboarding, subscriptions, partner ecosystem, and reporting. Stripe ranks as a "Leader" in the merchant payment providers landscape ahead of competitors like Adyen, Fiserv, PayPal, and Wordpay.

MARKET OPPORTUNITY

The global e-commerce payments market has grown approximately 4x since 2015, from $1.5 trillion to $5.8 trillion in 2023. Stripe has captured a 17% market share with $1 trillion in annual payment volume. The digital payments market continues expanding as industries embrace AI and adapt to seamless payment methodologies, creating substantial growth runway.

Stripe's comprehensive offering creates significant switching costs across diverse client segments, mitigating concentration risk and supporting revenue retention. The expanding portfolio drives customer loyalty and positions Stripe to capture a larger share of clients' financial services needs. Operating across 46 countries with support for additional markets through subsidiaries, Stripe's international footprint provides competitive advantages difficult for challengers to replicate.

STRATEGIC ADVANTAGES

Technology Advantages: Stripe's competitive advantage lies in its advanced technology stack with artificial intelligence and machine learning capabilities for efficient payment processing, fraud detection, and seamless integration. The developer-friendly APIs make Stripe the preferred choice for technically sophisticated companies. Operating across 46 countries, Stripe's international footprint enables cross-border support that challengers cannot easily replicate.

Market Position Advantages: Stripe's one-stop-shop platform empowering businesses across payments, accounting, and banking creates significant switching costs. The diverse customer base from startups to Fortune 500 companies spreads revenue across numerous clients rather than concentrating among a few. Strategic partnerships with Amazon, Google, Microsoft, and Shopify expand distribution while Forrester Research recognition as an industry leader validates market positioning and ability to delight merchants.

VALUATION ANALYSIS

Stripe's valuation grew from $1.75 billion in 2014 to $91.5 billion in February 2025, representing a 52x increase over a decade. The company peaked at $95 billion in March 2021, fell to $50 billion in May 2023 during sector-wide correction, and rebounded to current levels with the Caplight valuation at $112.2 billion (23% premium).

Stripe's +47% recovery significantly outpaced publicly listed fintech peers, demonstrating superior fundamentals. At current valuation, Stripe trades attractively relative to its $18 billion revenue run rate, $500 million operating profit, and 37% revenue CAGR (2020-2023). The company has raised $8.8 billion to date, with a record $6.5 billion Series H in 2021 providing substantial capital. The diverse revenue streams, blue-chip client base, and proven profitability distinguish Stripe from growth-at-all-costs competitors.

MANAGEMENT TEAM

Patrick Collison, Co-Founder and CEO: Patrick co-founded Stripe in 2010 at age 22 with his brother John. Born in rural Ireland, Patrick transformed Stripe from a Y Combinator startup into a global fintech leader processing over $1 trillion annually. His vision of "increasing the GDP of the internet" has positioned Stripe as a cornerstone of the digital economy.

John Collison, Co-Founder and President: John co-founded Stripe at age 19, bringing deep technical expertise. As President, John oversees product development and operations, ensuring Stripe maintains its reputation for developer-friendly tools. The Collison brothers' journey from rural Ireland to Silicon Valley represents one of fintech's greatest success stories.

SELECT INVESTORS

Stripe has backing from premier venture capital firms including Sequoia Capital, Y Combinator, General Catalyst, Founders Fund, GreenOaks Capital, Thrive Capital, Tiger Global Management, Khosla Ventures, A16Z, DST Global, and Salesforce Ventures. Strategic corporate investors include Visa and Google Ventures. This investor syndicate represents the "who's who" of Silicon Valley with proven track records in Facebook, LinkedIn, Netflix, Airbnb, and Uber. The company's ability to raise $8.8 billion culminating in a $91.5 billion valuation (and $112.2 billion Caplight valuation) demonstrates sustained institutional support and validates Stripe's market leadership.