Lucky Stripe: Silicon Valley Fintech Startup Zooms to $35B in Value
This episode of Business Wars daily is brought to you by sent pro online from pitney bowes shipping and mailing from your desk is never been simpler than with sent pro online from Pitney Leabeau's. Try It free for thirty days and get a free ten pounds scale when you visit. PBA DOT com slash B W daily the from wondering I'm David Brown and this is business wars daily happy Monday everyone. It may be the biggest his tech startup. You've never heard of unless you own your own business that is stripe and online payment service and outs last Thursday that it is now worth more than thirty five five billion dollars that's according to valuations by investors who just poured another two hundred fifty million into the company which helps small businesses accept payments over the Internet funding boosted stripes valuation by twelve billion dollars making it the third most valuable startup in the US according to Bloomberg that news outlet says only the we the company owner of we work and jewel the vape company are worth more and unlike those two companies stripe doesn't appear to be financially troubled as the week company is or struggling with controversy like jewel but if you're not familiar with this giant company well that's reasonable stripe handles back in payment systems for businesses ranging from tiny one person startups to mammoth businesses like airbnb lift facebook and shop affi- and its CEO and president the young brothers Patrick and John Collison in who founded the company have operated quietly without the flash of more well known Silicon Valley UNICORNS becomes roots sound like they were made for Silicon Valley origin origin story the Carlson's hail from drama near an Irish village with a population of one hundred and two while still in high school patrick and John moved to the US in founded business that managed transactions on Ebay then they sold it for five million dollars at ages nineteen and seventeen and each had brief stints at College John at Harvard and Patrick at Mit but the entrepreneurial bug had taken hold and two years later in two thousand ten. They founded stripe the point of their start up to take the pain out of what was then a clunky complicated task for businesses and shoppers alike. It took off quickly. Mostly by word of Mouth College soon went by the wayside. One of their first funders was Peter Thiel. One of pay pal founders fast forward to today and stripe not only helps businesses process payments. It's expanding into other areas areas of finance last week announced a new lending arm called Stripe capital and stripe corporate credit card strike plans to use its new funding mm to continue expanding geographically. It has its ion eight new countries at its heart though the brothers want to enable new businesses to get off the ground by streamlining payments. Amos no matter where their customers are despite its fairytale like origin story stripe isn't without competition far from it. Its closest. Rival is square now. That's the company that offers those little square devices that lets you take credit card payments from your mobile device twitter founder. Jack Dorsey Co founded square both businesses now process hundreds of millions of transactions both companies forgo the monthly processing fees that banks charge businesses in charge flat rate fees instead and squares been making business loans for five years and boasts that it has lent more than five billion dollars so far still as of last Thursday stripe is now worth ten billion dollars more than square according to the New York Times back when Patrick can John Collison were still teenagers messing around trying to find their next business idea they found that the hardest thing about starting a new company was figuring out how to get paid paid. They seized on that problem as the right one to solve but today they say that less than eight percent of all commerce happens online so as big as they are and as big as their rivals square us to one thing seems certain when it comes to the growth of financial technology her you you ain't seen nothing yet from around wondering business worst do a quick favor and tell us more batch yourself visit one three dot com slash survey. We'd love learning more about I'm I'm David Brown. Thanks for listening and we'll be back. This episode is brought to you by send pro online from Pitney Bowes Shipping and mailing from your desk has has never been simpler than with San pro online from Pitney bowes with simple online is just click sand and save for as low as four dollars ninety nine cents. That's right at four dollars and ninety nine cents a month. Send envelopes flats packages right from your PC and you are back to business in no time. Try It for free for thirty days and get a free ten pounds scale but only when you visit P B dot com slash B._w. Daily that's P._B. Dot Com slash B W daily.