Stripe Stock: Will Stripe IPO This Year (or ever)?

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Stripe Logo - Learn how to prepare for the eventual Stripe IPO. Explore ways to buy Stripe stock and follow news as the company approaches its IPO date.Learn how to invest in Stripe stock once before the Stripe IPO arrives. Buy and sell pre-IPO startup shares at Hiive. Monitor share availability or place a bid for the sellers to find you.


Latest Stripe Stock IPO News

03/13/2024: Stripe passes $1 trillion in 2023 payment volume
02/28/2024: Stripe announces tender offer for employee liquidity
02/05/2024: Stripe’s popping off in the secondary markets
12/21/2023: Stripe Swings to a Profit as Business Rebounds
Older news…

What is Stripe?

Stripe is a financial technology company that develops payment processing platforms, including APIs (application programming interfaces) and software-as-a-service (SaaS) packages that enable digital payments.

Its APIs allow web and mobile app developers to integrate payments (both receiving and sending) into everyday business operations.

The company was founded in 2010 by Irish brothers Patrick and John Collison. The same year it entered the Y Combinator startup accelerator program. 

Stripe has 1 million + customers, ranging from small startups to the largest and most innovative corporations worldwide. Customers and partners include Amazon, Shopify, Pelaton, Lyft, Zoom, Slack, Klarna, Uber, Doordash, and OpenTable.

The Stripe mission statement: 

Our mission is to increase the GDP of the internet. Stripe is a technology company that builds economic infrastructure for the internet. Businesses of every size—from new startups to public companies—use our software to accept payments and manage their businesses online.

Company headquarters are in San Francisco.

Here’s a video describing how Stripe API technologies can be embedded into smartphone apps.

Is Stripe Publicly Traded?

No, the company is privately owned.

Who Owns Stripe?

Stripe investors are made up of the founders, employees, and prominent venture capital firms such as Andreessen Horowitz, Google Ventures, Sequoia Capital, Tiger Global Management, General Catalyst, Y Combinator, Khosla Ventures, Thrive Capital, Baillie Gifford, Founders Fund, MSD Partners, GIC, Goldman Sachs, Temasek, and Kleiner Perkins.

Its most recent completed funding round was in March 2023 — a Series I fundraise of more than $6.5 billion. 

The company says it didn’t need the money, but raised funds to provide liquidity to employees.

Recent reporting suggests the company will decide if it will go public in 2023 or not, and is leaning toward not. The Series I fundraise provided the necessary liquidity for long-time employees to cash out. 

As with nearly all venture-funded startups, Stripe may eventually need to become a publicly-traded company to provide early investors the opportunity to liquidate shares. 

Stripe Valuation Today

The current Stripe valuation is $65 billion after its February 2024 tender offer. 

The March 2021 funding round valued Stripe at $95 billion. However, the company lowered its internal valuation (aka 409a valuation) in July 2022, in January 2023, and again in late February due to the downturn in technology starts and pre-IPO startups.

When is the Stripe IPO date?

The Stripe IPO date is currently unknown. 

As private demand for ownership remains high and cash is plentiful, Stripe does not need to go public in the immediate future. 

However, as Stripe has increased its equity shareholders to include more venture capital firms.

Private investors are patient but will eventually need liquidity. 

But according to a report by The Information, Stripe is positioning itself to stay private for “several more years”.

We won’t know the date until the Stripe IPO date range or other relevant IPO news leaks to the financial press. Or if the SEC Stripe S-1 filing becomes available. 

The Wall Street Journal reported in January 2023 that:

Stripe co-founders Patrick and John Collison told employees Thursday [01/26/23] that executives set a goal of either taking the company public or allowing employees to sell shares in a private-market transaction within the next 12 months, according to people familiar with the matter.

Reuters reported on July 8th, 2021, is that Stripe has hired Cleary Gottlieb Steen & Hamilton LLP as a legal adviser for early IPO preparations. 

Further reporting by Bloomberg on September 10th, 2021, indicates the company is “discussing a public listing for 2022 with bankers”.

However, the IPO looks more likely in 2023 or 2024 or when market conditions improve. 

Typically with a high-profile company of this size, reports of intent to have an IPO will leak to the press well ahead of the IPO. As of March 2021, the company is well-funded through private funding. 

At this stage of maturity, an IPO seems to be likely within the next 6-24 months. 

Even when the company and SEC publicly release the S-1 filing, we still won’t know a firm date. However, the IPO date typically occurs a month or two after the S-1 is released to the public.

Because Stripe is one of the world’s most valuable financial technology companies, you can be sure that the Stripe IPO date announcement will be big news. 

What is the Stripe Stock Price?

Since Stripe is not publicly traded on a stock exchange, there is no public Stripe stock price yet.

The most recent estimate for the internal 409a Stripe stock price is $20 per share, according to a report by The Information in late February. 

An internal memo sent to employees in July 2022 declared an internal 409a share price of $29, according to reporting by the Wall Street Journal. The valuation decrease in January 2023 placed the 409a share price at about $25. 

Private transactions on the Hiive pre-IPO marketplace show shares have traded hands at $20 and $25 per share in February 2024. 

What is the Stripe Stock Symbol, Stripe Ticker?

Stripe has not yet submitted publicly viewable filings to the Securities and Exchange Commission. There are no reports of confidential filings.

Therefore, we don’t know what the Stripe stock symbol will be.

We can only speculate about the Stripe ticker.

Here is one obvious suggestion that appears to be available in the U.S.:

  • STRP

Can you Buy Stripe Stock? Three Potential Ways

It’s a challenge to acquire shares of a stock that is not trading on the public markets. It is possible, but you may not be eligible, and it may not be worth the hassle. 

For example, if you look at Uber stock, individual investors salivated for years, waiting for it to trade publicly.

When it finally went public, the stock price fell. So you were better off waiting to buy the stock instead of buying it before the IPO. 

There are three ways you can attempt to own shares of Stripe.

  1. Access Stripe shares via pre-IPO investing platforms
  2. Buy Stripe stock after it begins trading
  3. Attempt to buy Stripe stock in the initial public offering (IPO)

1. Access Stripe Shares via Pre-IPO Investing Platforms

Founders, early employees, and investors often find themselves in a difficult predicament. They own valuable shares of a company that doesn’t trade publicly. 

These shareholders might have multi-million dollar net worth’s because of their stock holdings, but the stock is not liquid because it doesn’t trade on an exchange. 

A few platforms have evolved to give these individuals a way to liquidate their holdings before the IPO.

Equitybee provides accredited investors access to pre-IPO startups by funding employee stock options. In exchange, investors gain a portion of the future stock value.

Other prominent pre-IPO investing platforms include Hiive Linqto, EquityZen, and Forge Global.

Learn more about pre-IPO investing.

Though the company claims it “does not offer opportunities for retail investors to invest in the company, nor does it offer equity investments through third-party brokers or other agents,” there is evidence that shares have been available on pre-IPO platforms.

That means that an existing shareholder may have attempted to sell shares on a pre-IPO platform, not the company. 

These sites bring liquidity to an otherwise illiquid asset. Accredited investors may join these sites and attempt to buy shares of these companies when they become available. 

The shares are only offered to accredited investors because the company’s financials have not been publicly filed with regulators yet, increasing the investors’ risk.

For high-profile companies, demand is high, lowering your chances of acquiring shares.

2. Buy Stripe stock after it begins trading

Since acquiring pre-IPO shares is delicate and usually reserved for wealthy investors (accredited), the most likely way you’ll own the stock is to wait patiently for the IPO to complete. 

In many cases, investors can get in at a price at or below the IPO price. This is not always true.

Uber, which many predicted to rise steeply, actually fell on the IPO date.

The moral here is that spending significant effort to own a company before the IPO may not be worth it in the end.

Your best chance to own the stock is by waiting for the IPO and making a purchase of Stripe stock through a no-fee online brokerage account. You can open the account well before the IPO, then place your first trade to learn how to buy shares of a company. 

I recommend starting with a company you know well. If you like Target (TGT), for example, buy Target stock.

So what is the best online brokerage for buying Stripe stock?

As an individual investor, you’ll want to open an account with a commission-free online broker (most are nowadays). That way, you’ll invest most of your money instead of wasting it on fees. 

I’ll go over one of my favorites below. It has very reasonable fees and will make it easy to buy Stripe stock once trading begins on open stock markets. 

What is the Best Online Broker to Buy Stripe Stock after the IPO?

For investors looking to participate in IPOs, TradeStation offers IPO investing to customers (more below).

However, you’re never guaranteed a share allocation, and most high-demand IPO will not be available. 

Long-term investors may prefer an online broker that’s better for dollar cost averaging and dividend reinvestment

I’m a big fan of the online brokerage M1 Finance. M1 Finance is a reliable and robust, no-fee online broker for beginner to intermediate investors. It’s easy to get started.

As your investing skills and portfolio mature, M1 is one of the best platforms to scale.

They also offer an integrated checking account and low borrowing rates. Read my complete M1 Finance review here

M1 Finance does not offer IPO access. But it’s my favorite for everyday investing. 

The platform is more intuitive than traditional brokers because it’s built on a modern technology platform. You create portfolio “pies” that contain all the stocks and ETFs you want to own and in what percentages. Simply add Stripe stock to your portfolio. 

Learn More about M1 Finance

3. Attempt to Buy in the Stripe Initial Public Offering (IPO)

Ambitious investors may attempt to position themselves to invest in the Stripe IPO once it arrives. Most retail investors will not get access.

The wealthiest clients at the top investment banks will get IPO shares in the hottest deals.

Your chances of getting IPO shares depend on four factors:

  • IPO demand
  • Your broker and eligibility
  • Your assets under management at the broker
  • Propensity to flip shares

As IPO demand increases, the chances of receiving IPO shares decreases. Therefore, the IPOs that are most interesting to the masses are the hardest to access. 

Lower-demand IPOs may be available to retail investors who are customers of participating brokers. 

What are the Best Online Brokers for IPO Investing?

For an extensive list of IPO-friendly online brokers and their eligibility, check out this page.

Wealthy customers ($1 million+ accounts) at Fidelity, TD Ameritrade, and Schwab may have a shot at some IPOs, depending on demand. 

TradeStation is the best option for investors with less than $250,000. Both give limited access to lower-demand IPOs and secondary offerings through a partnership with ClickIPO, an IPO investing app.

Joining a broker that offers access to IPOs does not guarantee a share allocation, especially in high-demand IPOs. You are probably better off waiting for the company to start trading after the IPO. 

Conclusion

For ordinary investors, it will be difficult to acquire pre-IPO Stripe shares. If you’re determined, follow the pre-IPO marketplaces and pay attention to any offerings. You must be accredited to invest this way. 

Otherwise, you’ll need to wait for the IPO date.

But that’s not necessarily a reason to be disappointed. Google’s shares rose 18% on the day of its IPO. Many people probably sold that day. Had they held for the next decade, their holdings would have been up 1,000%+.

When the Stripe IPO is near, please perform due diligence and read the SEC S-1 filing. Only buy Stripe stock with money you can afford to lose. 

Check out this list of the hottest upcoming IPOs for more investment ideas.

Readers may also enjoy:

Stripe Stock News Archive

06/29/2023: Stripe Lays Off Dozens, Mostly in Recruiting
03/15/2023: Stripe announces new round of funding
03/08/2023: Stripe Raising $6B to Resolve Taxes & Expiring Employee Shares
02/28/2023: Stripe Cuts Internal Valuation to $50 Billion
02/23/2023: GS Offers Rich Clients Access to Stripe’s $4B Fundraise
02/17/2023: Inside Stripe’s $55 Billion Pitch to Investors
02/16/2023: Stripe Is on Track to Turn a Profit With $1 Trillion in Volume
02/06/2023: Stripe Walks Tightrope to Stay Private
01/31/2023: A Tech Giant Closes In on a Pricey Funding Round
01/26/2023: Stripe Sets One-Year Timetable to Decide on Going Public
01/11/2023: Stripe’s internal valuation gets cut to $63 billion
11/03/2022: Stripe lays off 14% of workers
08/22/2022: T. Rowe Cuts Stripe, Instacart Valuations After Tech Selloff
07/14/2022: WSJ: Stripe Cuts Internal Valuation by 28% ($74 billion)
07/07/2022: Stripe partners Revolut to support payments and expansion
06/13/2022: Stripe’s Growing Pains: A Payments Star Hits Snags in Push for Big Businesses
05/26/2022: Collison Brothers Built Stripe Into A $95 Billion Unicorn With Eye-Popping Financials
05/17/2022: Stripe Ranked #8 on CNBC’s Disruptor 50 List
05/12/2022: Stripe takes a swing at Plaid
04/22/2022: Stripe jumps into crypto with a feature that lets Twitter users get paid in stablecoin
04/12/2022: Stripe teams up with major tech companies to commit $925 million toward carbon capture
04/12/2022: Is Stripe cheap at $95 billion?
02/16/2022: Stripe Leads $75 Million Investment Round Into Payroll Infrastructure Startup Check
11/25/2021: Stripe is Open to Accepting Crypto Payments Again
11/23/2021: Stripe co-founder says the fintech giant is ‘very happy’ staying private
10/26/2021: Fintech giants Stripe and Klarna partner on ‘buy now, pay later’ as competition heats up
10/05/2021: Stripe reports surge in revenues for Dublin-headquartered unit
09/10/2021: Stripe Is Discussing Public Listing for 2022 with Bankers
07/08/2021: Online payments firm Stripe takes first step toward blockbuster listing 
06/14/2021: Investors Clamor for a Bigger Piece of Payments Company Stripe
04/08/2021: Payment giant Stripe funds fintech startup Ramp at $1.6 billion valuation
04/06/2021: Clubhouse partners with Stripe to let you send money directly to creators
03/19/2021: The most valuable startup in America is worth more than SpaceX
03/15/2021: Stripe raises new capital, reaching $95 billion valuation ahead of market debut
03/14/2021: Stripe has raised a new round of funding valuing the company at $95 billion
02/22/2021: If Coinbase is worth $100 billion, what’s a fair valuation for Stripe?
02/17/2021: Investors Are Now Valuing Stripe At $115 Billion
01/10/2021: Could Stripe Be the Biggest IPO in 2021?
11/24/2020: Payments Startup Stripe in Talks for Funding at $70 Billion Valuation or More
10/15/2020: Stripe acquires Nigeria’s Paystack for $200M+ to expand into Africa
09/27/2020: Philippines payment processing startup PayMongo lands $12 million Series A led by Stripe
09/23/2020: Stripe Partners With Salesforce In Enterprise Push, As Potential IPO Looms
04/16/2020: Stripe raises new capital at $36 billion valuation

Disclosure: The web page contains affiliate links from our partners. If a reader opens an account or buys a service through a link in this article, we may be compensated at no additional cost to the reader. Opening an account with a broker that provides IPO access does not guarantee allocations of specific IPOs. The author is long MA and TGT. The author is a paying subscriber to Motley Fool Stock Advisor.


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