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Stripe valued at $159B, 2025 annual letter

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11–20 of 253 posts

Re: Stripe valued at $159B, 2025 annual letter

#11

It's insane that they aren't public yet. Their investors must be pressuring them like crazy to IPO.

Companies that keep delaying going public generally do so to keep hidden unfavorable data.

Private companies can say whatever they want about their performance as long as they don't lie to their own investors; public companies can't.

Re: Stripe valued at $159B, 2025 annual letter

#12
post #8

It's insane that they aren't public yet. Their investors must be pressuring them like crazy to IPO.

It’s sad. Public companies allow the rest of us to participate in a success story like this. Until IPO it’s only a selected group of affluent people who have access to these private companies.

IPOs also kill a lot of companies. Now you have a new list of investors you are obligated to attend to, and what those investors what is not always to make your company more successful, if it can make more money now.

Re: Stripe valued at $159B, 2025 annual letter

#13
post #3

Earlier quoted context omitted.

Why ask for IPO to dillute the effective investor pool if you are already making a ton of money consistently?

To give liquidity to investors.

The cost of that liquidity is missing out on realizing future growth though. It's fairly safe to assume that as there isn't an IPO yet the investors want to hold rather than cash in returns. They probably believe there's more growth potential, and that the board are the right people to deliver it.

Re: Stripe valued at $159B, 2025 annual letter

#14

It's insane that they aren't public yet. Their investors must be pressuring them like crazy to IPO.

Stripe has been doing annual tender offers. Their stance on not being public yet is that they don't need to be, as an IPO is mainly a way to raise money.

As an ex-Stripe, I understand the sentiment, and the tender offers are a nice middle ground for now, but I still would like to see them go public eventually.

Re: Stripe valued at $159B, 2025 annual letter

#15
post #9
post #5

Earlier quoted context omitted.

I hope they hold off - going public tends to kill innovation and replace it with bureaucracy

Almost as if there's a lot to innovate in a "dumb pipe" a payment processor naturally is.

Can probably build it in a weekend.

Re: Stripe valued at $159B, 2025 annual letter

#16

It's insane that they aren't public yet. Their investors must be pressuring them like crazy to IPO.

Companies that keep delaying going public generally do so to keep hidden unfavorable data. Private companies can say whatever they want about their performance as long as they don't lie to their own investors; public companies can't.

You don’t have to go public at all. If you’re profitable and your investors don’t want an exit, then you can stay private in perpetuity. Epic is a great example of that.

Re: Stripe valued at $159B, 2025 annual letter

#17
Private markets is where the wealth is (if you invested at the bottom), as soon as Stripe goes public you're getting dumped on.

Unfortunately you need to be an accredited investor to access these markets.

This is the real gatekeeping here as rich pop stars, actors, sports stars and musicians who aren't versed in tech has more access to investing in these private companies than the academics, students in europe creating the algorithms that power them.

An 11 year old can inherit $100 million and be more "accredited" than you, even though they (may) have no knowledge of the industry, no investing experience and no years of industry experience.

Even if you have knowledge in the tech scene and you know which companies are going to go big in the future, unless you're ultra rich already to qualify as accredited, you're shut out early on.

Re: Stripe valued at $159B, 2025 annual letter

#18
post #8

Earlier quoted context omitted.

It’s sad. Public companies allow the rest of us to participate in a success story like this. Until IPO it’s only a selected group of affluent people who have access to these private companies.

IPOs also kill a lot of companies. Now you have a new list of investors you are obligated to attend to, and what those investors what is not always to make your company more successful, if it can make more money now.

Not just the IPO. Being public at all subjects you to the perverse and destructive incentive of needing to maximize shareholder value. Just because some private companies take VC funding (and subject themselves to analogous forces) doesn't mean that's required or expected.

Re: Stripe valued at $159B, 2025 annual letter

#19
post #8

It's insane that they aren't public yet. Their investors must be pressuring them like crazy to IPO.

It’s sad. Public companies allow the rest of us to participate in a success story like this. Until IPO it’s only a selected group of affluent people who have access to these private companies.

I see it differently, and not in a particularly popular manner. Public companies allow those that are already pretty well off to rocket past those who can't afford shares, therefore adding to the disparity. I despise sudden or inherited wealth though so I'm not the best barometer for how things should work when it comes to this. I can't count how many times I've been made almost physically ill hearing about the next meme stock that made some nobody a millionaire overnight.

Re: Stripe valued at $159B, 2025 annual letter

#20
post #9
post #5

Earlier quoted context omitted.

I hope they hold off - going public tends to kill innovation and replace it with bureaucracy

Almost as if there's a lot to innovate in a "dumb pipe" a payment processor naturally is.

At scale, payment processors are amongst the most difficult things you could do because every two bit crook out there is going to try to scam you somehow.
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