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Stripe is currently worth $95B. It builds software for an essential step in online businesses: accepting online payments and managing revenue. Furthermore, it is used by millions of companies, including Amazon, Google, and Microsoft. It is therefore expected that investors are wondering how to purchase Stripe stock.

But is it possible to buy Stripe stock? If so, what options do investors have? In this blog post, we will talk about Stripe and all the ways in which investors can purchase Stripe stock.

What Is Stripe?

Stripe is a technology company that builds economic infrastructure for the internet in a simple, scalable, and secure way. Companies can use Stripe’s software to accept payments in their online businesses and manage their revenue.

Stripe works by connecting financial institutions, regulators, payment networks, and banks to consumer wallets. Stripe’s customers are free from having to spend time dealing with all these entities separately. They only have to use and interact with Stripe instead. If a business that uses Stripe needs to scale or expand internationally, the payment processing will automatically adjust and scale alongside the company.

Stripe is used by millions of companies around the world, from start-ups to the world’s largest companies such as Amazon, Google, and SalesForce.

It competes with other payment platforms such as PayPal, BrainTree, and Square.

What Are Stripe’s Highlights?

Stripe has a large number of great features such as scalability, security, and low fees.

However, there are two major features that set Stripe aside from its competitors: they provide a simple initial setup and they have great customer service. They are also particularly successful at reducing credit card fraud via their powerful machine learning algorithms.

In terms of payment integrations, Stripe supports AliPay, a Chinese payment platform, Android Pay, Apple Pay, Bitcoin, and ACH. This allows them to provide great coverage and makes it easier to attract new customers to the platform.

Finally, Stripe managed to attract as customers millions of companies in over 120 countries, including some of the world’s largest companies such as Amazon, Google, and Microsoft. These are some very impressive achievements, especially when given the young age of its founders, the brothers Patrick and John Collison.

How Can I Buy Stripe Stock?

Stripe is still privately held, meaning its shares are not available on the public stock market yet.

But are there other ways to purchase Stripe stock? And how much can we expect to pay for each share of Stripe?

The latest private funding Stripe received in March 2021 pushed its valuation to $95 billion, nearly triple the previous valuation of $36 billion from April 2020. This valuation made Stripe the highest valued venture capital-backed US company, unseating Elon Musk’s SpaceX from the throne, which now sits firmly in the second place with a valuation of $74 billion. Furthermore, this makes Stripe the second-highest valued VC-backed company in the world, just behind ByteDance.

Since many of its investors, including Sequoia Capital, General Catalyst, and Google Ventures, will want a significant return on investment, the company will likely go public with a higher price.

But, there are other ways to invest in Stripe pre-IPO. Take a look below for more information.

Are There Other Ways to Invest in Stripe?

Since it’s impossible to buy Stripe stock from the stock market, we’ll look into the other possibilities for investors to invest in Stripe pre-IPO.

Some platforms allow investors (usually retail and accredited investors) to invest in pre-IPO companies. Like EquityZen and Forge Global, such platforms enable existing stock option holders to sell their options to investors willing to meet their price demands.

 📚 See ALL the ways you can get in on pre-IPO investing: How to Buy Pre-IPO Stocks?

Are There Any Concerns About Stripe?

There are multiple options for online payment platforms, so Stripe is working in a competitive environment.

Although the company is growing worldwide, Stripe is only available in few countries compared to, for example, PayPal. That said, PayPal has been around for a lot longer, so there’s plenty of room for Stripe to grow and expand into more markets.

Finally, Stripe needs to catch up with its competitors and continue bringing unique value or otherwise, they will risk becoming obsolete.

Read our guide on pre-IPO investing for more information on how pre-IPO stocks work and the potential risks and rewards that they present.

Conclusion

As you can see, there are some ways to invest in private companies pre-IPO, Stripe included. Some ways are more difficult than others. But if you’re willing to do some digging, you might be able to purchase Stripe stock before the company’s IPO.

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FAQs

What is Stripe?

Stripe is a technology company that builds economic infrastructure for the internet in a simple, scalable, and secure way. Companies can use Stripe’s software to accept payments in their online businesses and manage their revenue.

What are Stripe’s highlights?

Stripe has a large number of great features such as scalability, security, and low fees.

How can I buy Stripe stock?

Stripe is still privately held, meaning its shares are not available on the public stock market yet. But there are other ways to purchase Stripe stock pre-IPO.

Are there any concerns about Stripe?

There are multiple options for online payment platforms, so Stripe is working in a competitive environment.