FinTech startup Stripe eyes exit; plans to go public within the next year
Fintech startup Stripe has set a one-year deadline to become a public company. The San Francisco-based Stripe said it will make a final decision on its plans to go public within the next year, The Information reported.
In a message to employees on Thursday, co-founders and brothers John and Patrick Collison said that they will set a goal of either through a direct public listing or selling shares via a secondary or private transaction. The 12-year-old has enlisted the help of Goldman Sachs and JP Morgan to decide the best course of action.
Meanwhile, Stripe has not been immune to the ongoing economic slowdown. Just a year ago, Stripe became the most valuable U.S. startup, with a valuation of $95 billion. However, the company reportedly lowered its internal valuation to $63 billion amid economic uncertainty, according to The Wall Street Journal.
In addition, as we also reported back in November, Stripe laid off 14% of its staff amid rising inflation and fears of a looming recession. In a memo to staff, CEO Collison said the cuts were inevitable as rising inflation, fears of a looming recession, higher interest rates, energy shocks, tighter investment budgets, and lack of funding forced the company to make the tough decision.
“The world is now shifting again. We are facing stubborn inflation, energy shocks, higher interest rates, reduced investment budgets, and sparser startup funding. (Tech company earnings last week provided lots of examples of changing circumstances.) On Tuesday, a former Treasury Secretary said that the US faces “as complex a set of macroeconomic challenges as at any time in 75 years”, and many parts of the developed world appear to be headed for recession. We think that 2022 represents the beginning of a different economic climate,” Collison said.
Founded in 2010 by two Irish brothers Patrick Collison and John Collison, The San Francisco-based Stripe software platform was launched to compete directly with PayPal, Adyen, and Square. The company allows businesses to accept online payments. Today, Stripe is now one of the most valuable fintech startups in the world. Patrick and John Collison, who are 32 and 30 respectively, are each worth over $11 billion.