Invest in the Stripe IPO with Pre-IPO Shares via Smart IPO

In the world of digital payment processing, Stripe Inc. is king. Despite slowed growth in 2022, the company generated reported gross revenue of $14.4 billion.

Now, with less than half of 2023 lying ahead, there’s one massive question lingering over the company: Is an initial public offering (IPO) in its future, or will another year go by without it?

According to a recent Reuters report, Stripe is believed to be close to raising $4 billion in capital at a valuation of approximately $55 billion. Despite the fact that it could be one of the largest private funding rounds in recent history, don’t forget one thing. In early 2021, Stripe held a valuation of $95 billion.

So, it’s not all rainbows and butterflies for the world’s leading digital payment processor. However most investors are seeing this downturn in valuation due to the economy and not Stripe itself, analysts are therefore stating that now is the best time to invest in Stripe.

In 2022, Stripe processed $800 billion in payments but still lost $80 million. The company is forecasting adjusted earnings before interest, taxes, depreciation and amortization of $100 million in 2023 on $1 trillion in processed payments.

The decision on an IPO is in the hands of brothers and Co-Founders John and Patrick Collison. In January, they told employees they would decide by the end of the year to take the company public or let employees sell shares through a secondary offering.

As always making profit in pre-IPO investing does not rely on the company going public, the share price has been climbing steadily over the last five years and investing now could see good returns even without the IPO listing this year or next.

How likely is the Stripe IPO?

The clock is ticking, and the public is paying close attention. While 2023 isn’t likely for an IPO, it could be announced anytime, Stripe will be one of the biggest IPOs in history when it lists and most people expect the IPO sometime in early to middle of 2024.

Co-founders Patrick and John Collision started the payment processor in 2010. The brothers have preferred keeping Stripe private, even though there are options for them to keep tight control of a public company.

For one, the brothers could issue dual-class shares, thereby holding the bulk of super voting rights. Many founders of tech companies have taken that course. Also, Wall Street is generally fine with the governance structure.

What's clear is that a Stripe IPO would be a big event. Square's 2015 IPO raised $243 million. An offering for the operator of would likely dwarf that, even if the company's valuation has pulled back.

What is the Stripe share price?

Stripe 2023 valuation is $50B. This valuation was set in the $4.6B Series I round raised in March 2023. Baillie Gifford, Thrive Capital and Founders Fund invested in the round and set the Stripe Series I valuation.

Stripe has raised total funding of $6B across 22 rounds from notable investors including Andreessen Horowitz, Tiger Global, Sequoia Capital and General Catalyst.

The Stripe share price, although taking a decline in the last 6 months, is still up over 248% in the last 5 years and is now US$20.22.

Buy shares in Stripe today!

The Smart IPO platform enables you to buy shares in Stripe at the current market price of US$20 per share. You can open an account with Smart IPO easily online and we have offices located globally and an account manager will be provided to you based on your country of residence.