How to Buy Stripe Stock
Stripe is not yet available in the stock market, but it doesn't mean you can't invest in it. Check out these alternatives and start your investment.
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Stripe is one of U.S.' most highly valued payment processing companies, making it a smart investment choice.
It is being used by more than 100 businesses worldwide, and they are no longer limited to just payment processing. Among these businesses, 75% are considered "global winners," as they use Stripe to manage various operations in multiple countries.
Understandably, investors like you are eager to get their hands on Stripe. So, here's how you can invest in the company before its IPO.
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Can you buy Stripe stock?
Stripe is not publicly traded. This means it is not available on the stock market.
Despite its significant growth in the past decade, its IPO has not been announced. But Stripe co-founders Patrick and John Collison told employees that Stripe will either go public or let its employees sell shares in private market transactions within the next 12 months.
Notable investors of Stripe include Elon Musk, Peter Thiel, Andreessen Horowitz, and Sequoia Capital. In addition, major companies such as Shopify, Amazon, Lyft, and Instacart partnered with Stripe.
If you consider Stripe a promising investment, here are some options for purchasing their shares.
Invest in High-Growth Startups
Equitybee gives accredited investors access to high-growth, VC-backed startups. By funding employee stock options, accredited investors can gain investment exposure to private companies at past valuations. In exchange for funding the options, you will receive a percentage of future proceeds from any successful liquidity events. Subject to availability. Investments involve risk; Equitybee Securities, member FINRA
Stripe is owned by its co-founders, Patrick and John Collison. The two brothers founded the company in 2010 and have since grown it into one of the world's most valuable fintech startups.
How to Indirectly Invest in Stripe Stock?
There are two ways of indirectly investing in Stripe: through its major investors and through its partners.
Invest in Stripe's Major Investors
You can indirectly invest in Stripe through their major investors like Elon Musk and Peter Thiel. Elon Musk is one of the top investors of Stripe, starting with $20 million. Peter Thiel follows Musk, but the amounts were not disclosed.
As an investor, you have the opportunity to profit from the success of prominent individuals like Musk and Thiel. A good starting point could be purchasing shares in their respective companies, Tesla and Founders Fund.
- Tesla (TSLA)
Tesla is the most well-known company of Elon Musk. It is famous for its vehicles and is one of the most valuable companies worldwide. It has a current valuation of over $532.41 billion as of May 2023.The company also manufactures energy-generating products and services. Examples are energy storage systems, solar panels, and roof tiles.
Start investing in Tesla with our quick guide! - Founders Fund
Founders Fund is a venture capital firm co-founded by Peter Thiel. The firm invests in startups across various industries, including fintech. To invest in Founders Fund, visit their website and follow the instructions on becoming an investor.But take note that venture capital funds like Founders Fund may only be available to accredited investors.
Aside from investing in Stripe's major investors, you can also invest in Stripe's partners, such as the ones below.
Accredited investor is an individual or entity with a net worth of at least $1 million (excluding their primary residence) or an annual income of at least $200,000 ($300,000 for married couples) for the past two years.[1]
Invest in Stripe's Partners
By partnering with major corporations such as Shopify, Amazon, and Lyft, Stripe has established a strong presence in the market. Investing in these companies could potentially bring about indirect investment in Stripe's success.
- Shopify (SHOP)
Shopify is an e-commerce platform that has partnered with Stripe to provide payment solutions for customers. It is considered the top e-commerce platform for small and medium-sized businesses.Its current valuation is around $78.29 billion, with a 21% increase in its total revenue to $5.6 billion. [2]
- Amazon (AMZN)
Amazon is a massive global e-commerce company with various offerings that include online shopping, cloud computing, and artificial intelligence. In addition, Amazon has introduced its digital streaming platform.It is one of the most valuable companies, with an estimated valuation of $978.45 billion this May 2023.
- Lyft (LYFT)
Lyft, Inc. operates transportation networks in the United States and Canada using their platform and mobile applications. The Lyft App matches drivers with riders, offering various transportation options.
Now, check out this guide on how you can buy shares from these companies.
How to Invest through Stripe Partners
You can buy Shopify, Amazon, or Lyft stock using any brokerage or trading app. There are no special qualifications needed. Here are the steps to buying some shares.
- Create your account on their website or app.
- Fund your account. Note that some platforms require a minimum investment.
- Search for the company (you can use their ticker symbol, for example, SHOP for Shopify).
- Enter the number of shares or the dollar amount you want to buy.
- Place the order.
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20 Free Fractional Shares
Open a new Webull individual brokerage account. Make a single initial deposit of $500 - $1,999.99 during the promotional period to get 20 fractional shares, each valued between $3 - $3,000. Maintain a balance of $500 - $1,999.99 in the account for 30 days or more. Terms and conditions apply.
Stripe's initial public offering (IPO) date has yet to be announced. But the company is expected to go public by 2024. The IPO date depends on market conditions and investor sentiment.
Is it possible to buy Stripe shares before its IPO? Keep reading to find out.
How to buy Stripe before the IPO Date
Accredited investors may try secondary marketplaces. These serve as a platform for early investors and employees to sell their shares. In turn, accredited investors can buy shares if available.
You have to check the trading websites or apps for stock availability.
Here are simple steps to access secondary marketplaces.
- Sign up online with your chosen platform (Example: EquityZen)
- Undergo verification of your accreditation
- Once verified, you can browse available offerings
- Fund your account and buy shares
Remember, requirements may differ among marketplaces. The minimum investment is also pretty high (EquityZen requires a $10,000 minimum).[3] Also, these are usually offered to accredited investors.
Why invest in Stripe stock?
Investing in Stripe stock allows investors to benefit from its growing popularity and market share. It is known for its advanced technology and user-friendly platform. Its products were also adopted by many of the world's leading companies. These make Stripe an attractive long-term investment.
Stripe's growth made it one of the most valuable fintech startups. It has strong financing history with high-profile investors and venture capital firms. Elon Musk, Peter Thiel, Andreessen Horowitz, and Sequoia Capital, to name a few.
Stripe's revenue has multiplied in five years. It grew from $2.1 billion in 2020 to around $4.4 billion in 2021. Aside from these, you can also check its valuation to help you learn about the company's growth.
What is Stripe's valuation?
In its last funding round in March 2023, Stripe raises over $6.5 billion in funding at a $50 billion valuation, with investors including Andreessen Horowitz, Baillie Gifford, Goldman Sachs, and Temasek.[4]
March 2021 marks the highest valuation of Stripe. The startup was valued at $95 billion and raised $600 million in a Series H round. However, as of January 2022, their valuation has decreased to $55 billion. But this is still a good result because it is still significantly higher than their 2020 estimate of $36 billion.
If investing in Stripe doesn't work, you can also try its alternatives.
What are the Alternatives to Stripe stock?
There are two leading, publicly traded fintech companies in which you can invest. Check out PayPal and Square as investment options to diversify your portfolio.
- PayPal
PayPal is a digital payment company offering various online payment services. PayPal's current valuation is over $82.63 billion, with a 2023 revenue of $28.075 billion. This is an 8.73% increase year-over-year. - Square
Square is a payment processing company that provides hardware and software solutions to small businesses. It is valued at over $110 billion in their last recorded funding round in 2021.
Bottom Line
Investing in Stripe is possible through indirect investments in major investors such as Tesla and Founders Funds.
Another option is to buy shares of their publicly traded partners like Shopify, Square, and Lyft. Lastly, retail investors may access secondary markets to check the availability of Stripe stock.
Remember, it is important to be aware that investments involve risks, and it is advisable to do research before investing in any company.
References
- ^ Investor.gov Accredited Investors, Retrieved 5/17/2023
- ^ Shopify.Shopify Announces Fourth-Quarter and Full-Year 2022 Financial Results, Retrieved 05/16/2023
- ^ EquityZen. FAQ: What's the minimum investment size?, Retrieved 5/17/2023
- ^ Stripe. Stripe announces new round of funding and plan to provide employee liquidity, Retrieved 07/11/23
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