{"id":25556,"date":"2023-01-30T11:28:22","date_gmt":"2023-01-30T16:28:22","guid":{"rendered":"https:\/\/www.ipoboutique.com\/blog\/?p=25556"},"modified":"2023-01-30T19:10:31","modified_gmt":"2023-01-31T00:10:31","slug":"2023-ipo-forecast-when-is-stripe-going-public","status":"publish","type":"post","link":"https:\/\/www.ipoboutique.com\/blog\/2023-ipo-forecast-when-is-stripe-going-public\/","title":{"rendered":"IPO Boutique Brief: When is Stripe going public?"},"content":{"rendered":"<p>The IPO market has been in hibernation mode for more than 15 months.<\/p>\n<p>Big deals, little deals&#8230;it doesn&#8217;t matter.\u00a0 IPO investors are just wanting a spot to put their money to work.<\/p>\n<p>But truly, a<em><strong> healthy<\/strong><\/em> equity capital market means big deals make their way to the market.\u00a0 In 2021, a year in which there were 328 IPOs from tier-one underwriting firms, 26 of those offerings were cash raises greater than $1bn. In 2020, there were 20 offerings of that size.<\/p>\n<p>A big one that is waiting for its &#8220;window&#8221; to open is payment platform <strong>Stripe<\/strong>. The company saw its valuation sky-rocket in private markets during the last bull-run. The exact valuation figures for each funding round have not been disclosed publicly by the company, however, here are some of the reported valuations for Stripe during their funding rounds:<\/p>\n<ul>\n<li>In January 2016, Stripe raised $90 million in a funding round led by CapitalG, valuing the company at $9 billion.<\/li>\n<li>In November 2018, Stripe raised $245 million in a funding round led by General Catalyst, valuing the company at $20 billion.<\/li>\n<li>In April 2019, Stripe raised $250 million in a funding round led by Andreessen Horowitz, valuing the company at $35 billion.<\/li>\n<li>In September 2019, Stripe raised $250 million in a funding round led by Tiger Global Management, valuing the company at $36 billion.<\/li>\n<li>In August 2020, Stripe raised $600 million in a funding round led by Allianz X, valuing the company at $36 billion<\/li>\n<li>in January 2021, Stripe raised $600 million in a funding round led by Dragoneer Investment Group, valuing the company at $95 billion<\/li>\n<\/ul>\n<p>The $95 billion valuation in 2021 was a record for the\u00a0<b>highest-ever valuation for a private company.\u00a0<\/b><\/p>\n<p>Now in 2023, market conditions are much different.<\/p>\n<p>The fintech company has reportedly approached investors <strong>about raising possibly $2 billion at a valuation of $55 billion to $60 billion<\/strong>. According to the <a href=\"https:\/\/www.wsj.com\/livecoverage\/stock-market-news-today-01-26-2023\/card\/stripe-held-talks-for-new-funding-at-60-billion-valuation-aHC2sG3rw0wXjoTotK4S\" target=\"_blank\" rel=\"noopener\">Wall Street Journal<\/a>, Stripe would not use the money toward operating expenses but rather to cover a large annual tax bill associated with employee stock units.<\/p>\n<p>Given that Stripe has waited so long to go public, it will be interesting to see how the market views their &#8220;story&#8221; when they do eventually go to market. For example, a company of this maturity is now having to react to market conditions. The company announced a 14% cut of staff last November &#8212; around 1100 people. During the bull-run, you wouldn&#8217;t see cuts like this in a technology company prior to an IPO as they are ramping up growth.<\/p>\n<p>Stripe is now in the position where <strong>they are at the mercy of the market in terms of valuation.<\/strong> They have reportedly &#8220;mulled&#8221; over an IPO to occur within the next 12 months. Their first mistake was missing the IPO window during the bull-run. Their second mistake &#8220;could&#8221; be how they get their company to market. Will it be through a traditional listing or go the direct listing route? Will they attempt to &#8220;defend&#8221; a valuation at the expense of new investors?<\/p>\n<p>When the IPO market is in hibernation mode and a company is against the clock, difficult decisions have to be made. But these should be made with a longer time horizon in mind.<\/p>\n<p>Stripe is not the only tech company that is answering these questions in the C-Suite. But in 2023 they will be one of the larger, high-profile companies that investors are keeping tabs on.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The IPO market has been in hibernation mode for more than 15 months. Big deals, little deals&#8230;it doesn&#8217;t matter.\u00a0 IPO investors are just wanting a spot to put their money to work. But truly, a healthy equity capital market means big deals make their way to the market.\u00a0 In 2021, a year in which there[&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"zakra_general_container_width":0,"zakra_general_content_width":0,"zakra_general_sidebar_width":0,"zakra_sticky_header":"customizer","zakra_header_main_area":true,"zakra_site_logo_width":0,"zakra_header_top_enabled":"customizer","zakra_header_top_style":"customizer","zakra_primary_menu_item_style":"customizer","zakra_page_header_text_color":"","zakra_page_header_layout":"customizer","zakra_page_title_bg":null,"zakra_footer_widgets_bg_image":0,"zakra_page_title_bg_repeat":"customizer","zakra_page_title_bg_position":"customizer","zakra_page_title_bg_size":"customizer","zakra_page_title_bg_attachment":"customizer","zakra_breadcrumbs_enabled":"customizer","zakra_breadcrumbs_text_color":null,"zakra_breadcrumbs_separator_color":null,"zakra_breadcrumbs_link_color":null,"zakra_breadcrumbs_link_hover_color":"","zakra_page_title_bg_image":0,"zakra_footer_widgets_enabled":"customizer","zakra_footer_column_layout_1_style":"customizer","zakra_footer_widgets_bg":"","zakra_footer_widgets_bg_repeat":"customizer","zakra_footer_widgets_bg_position":"customizer","zakra_footer_widgets_bg_size":"customizer","zakra_footer_widgets_bg_attachment":"customizer","zakra_footer_bar_enabled":"customizer","zakra_footer_bar_style":"customizer","footnotes":""},"categories":[1536],"tags":[],"class_list":["post-25556","post","type-post","status-publish","format-standard","hentry","category-subscriber-content"],"_links":{"self":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/25556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/comments?post=25556"}],"version-history":[{"count":8,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/25556\/revisions"}],"predecessor-version":[{"id":25583,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/25556\/revisions\/25583"}],"wp:attachment":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/media?parent=25556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/categories?post=25556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/tags?post=25556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}