Investment reports

Stripe secures additional $ 1 billion investment

Stripe has secured an additional $ 1 billion ($ 830 million) investment, media reports say the company recently offered investors the option to buy shares from early backers and past employees and present.

The news, which has not been confirmed by the company, comes as Stripe continues to expand beyond the online payments space with the launch this week of a new tool that helps security systems. companies to verify the identity of users.

A Wall Street Journal report released Monday night said Stripe had received offers in excess of $ 4 billion for what was described as “material shares” in the company from existing shareholders.

However, only about $ 1 billion of the offers were filled, the newspaper reported, with suggestions that some shareholders were reluctant to sell shares amid discussions of a possible IPO later this year or in 2022.

However, mutual fund giant Capital Group, venture capital firm Sequoia, e-commerce firm Shopify, and buyout firm Silver Lake were among those making investments.

Stripe, which was founded by brothers Limerick Patrick and John Collison in 2010, became Silicon Valley’s most valuable private company earlier this year after a new fundraiser in March that valued it at $ 95 billion. dollars.

The online payment company has seen demand for its products skyrocket during the coronavirus pandemic with more than 200,000 businesses joining Stripe since the crisis began in March 2020.

Stripe announced on Monday Stripe Identity, a new tool that makes verifying identity as easy for a business as accepting payments. The company said it was the first self-service tool of its kind, allowing any online business to start verifying the identity of its users in minutes, with no code required.

The architecture powering Stripe Identity has been developed over the past decade by the company for its own use and has already verified the identity of millions of merchants globally as part of onboarding and anti-fraud checks. of the payment company.

“We know from experience how much work it takes to create a rigorous and secure global identity verification system,” said Delia Pawelke, head of Global Risk Strategy and Integration Policy.

“With Stripe Identity, we make our advanced compliance infrastructure available to all of our users. For an online business, verifying someone’s identity is now as easy as accepting payment.

The new tool is just one of many new products launched by Stripe this year. Products include Stripe Tax, which was developed at the company’s Dublin-based engineering center.