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Stripe valuation soars to $95B after latest fundraising

ft.com

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Re: Stripe valuation soars to $95B after latest fundraising

#71

Post by lsh123 »

ffggvv wrote: post #55

am i the only one that thinks fintech is massively overvalued? especially square etc, or anything adjacent. sure they have great growth and revenue but i don’t see any path where profit can justify the value

The main value for Stripe is not in the payments processing itself (I would estimate they take about 0.2% from TPV as fees). The main value is the add on services, and in particular short term loans to SMBs secured by incoming payments. Overall, Stripe is a strong and successful business with room to grow. Is >100x P/E justified? Probably not from pure financial perspective. However if you take into account “hype” then the price is about right.

Re: Stripe valuation soars to $95B after latest fundraising

#74

Post by klelatti »

disiplus wrote: post #58
klelatti wrote: post #41

Earlier quoted context omitted.

You'll notice I didn't mention price! Sure you'd like an identical service to Stripe for a lower fee but the moat is that doing what Stripe does isn't easy at all. You're paying for that fact.

Sure it is not easy, but it is also not impossible. We accepted card payments before stripe came. There are a couple of clones. Most of our customers pay with bank transfer and not online. If we would have all our invoices paid with stripe i'm sure we would try the other solutions. Don't get me wrong i'm not trashing stripe and they captured huge part of the market that is growing daily. But i'm not sure most people…

Don't disagree with anything you've said and if your margins are low and volumes are high enough it will be worth trying to shave off some of the fees.

But for a lot (the majority?) of businesses probably want to focus on other things.

Re: Stripe valuation soars to $95B after latest fundraising

#75

Post by bombcar »

jxramos wrote: post #59
bombcar wrote: post #12

Earlier quoted context omitted.

Make it clear where to send checks on your donation page - and encourage people to use their bank’s bill pay. Usually free to them and to you.

What would a non profit need to communicate externally for people to make bank transfers directly into their accounts? Does bill pay require a routing number to setup or anything like that? What are the prerequisites for setting that up?

In the US a postal address is literally all you need.

I believe in EU it is common to give a routing and account number though I think that is setup to allow input only.

Re: Stripe valuation soars to $95B after latest fundraising

#76

Post by jgalt212 »

bitcoinGod88 wrote: post #50
polote wrote: post #44

So Ayden is valued at 100 times revenue. Per the article Stripe is bigger than Ayden and growing faster, so Stripe must be worth more than 100 times revenue and less than 95000/684 = 138 times revenue. So comparatively to Ayden their valuation seems cheap (or they are not bigger than Ayden)

valuation should not increase linearly based on revenue. the market winner will eventually get the lions share

in credit card processing fees? there aren't many barriers to entry? Even Square is in on the game.

Re: Stripe valuation soars to $95B after latest fundraising

#78

Post by jgalt212 »

masom wrote: post #47
sebmellen wrote: post #4

This certainly makes Stripe the most valuable private startup in the world. Where does Stripe rank among the world's most valuable private companies, though? It's easy to find lists of dubious quality like this: https://news.yahoo.com/10-most-valuable-private-companies-21... , but I'm sure there are more lurking. What are they?

> This certainly makes Stripe the most valuable private startup in the world. Stripe has not been a startup for a while, they've been in public operations for about 10 years now and probably power a large portion of online purchases.

true. any word on their market share %?

Re: Stripe valuation soars to $95B after latest fundraising

#79

Post by jgalt212 »

abalone wrote: post #28
manishsharan wrote: post #22

Earlier quoted context omitted.

Think of it this way: there is no opportunity for an new entrant into this market almost globally. Stripe's fee is low enough and its API is super easy to use and the brand is well loved by most ecommerce companies. A new entrant will have to go up against this enormous amount of goodwill that Stripe has accumulated. The only danger to Stripe is if a major bank decides to get into this space. I work for a major bank…

Low pricing is not a moat.

Low pricing was Amazon's moat. Then the tech bubble crashed and they had to raise prices. Then AWS came along and pricing for non-AWS services didn't matter a thing as AWS margins were so high Amazon could do whatever it wanted in other business lines.

Re: Stripe valuation soars to $95B after latest fundraising

#80

Post by atonse »

edoceo wrote: post #67
ergocoder wrote: post #64

Earlier quoted context omitted.

It's an added benefit. That's good, no? Or are you saying all Irish businesses are bad because they are based in the tax haven. If you don't invest in developing your home country, which country should you focus on? Or we can throw a dart at a map and choose whatever country the dart lands on?

The dart idea might give us better distribution? Throw a dart and solve problems/invest in solutions for where it sticks. Mostly be fixing ocean problems but I'm OK with that.

Wouldn’t this just mean that countries with larger land mass get more investment rather than countries with more people?
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