Here is The Heaven32 Exchange, a newsletter published on Saturday, based on a column of the same name. You can subscribe to receive the email here.
Welcome to a special Thanksgiving edition of The Exchange. Today we will be brief. But not in silence, because there is a lot to say.
Arriba, the exchange referred the Slack-Salesforce agreement hereSo catch up if you missed it by having a cake for breakfast yesterday. And sadly, I don’t know why Palantir is seeing its value skyrocket. Normally we would discuss it, asking ourselves what its benefits might mean for the lower tiers of private SaaS companies. But since its move in the public market appears to be an artificial increase in value, we’ll just wait.
This is what I want to talk about on this good Saturday: Bloomberg Informs that Stripe is in the market for more money, at a price that could value the company at “over $ 70 billion or well, up to $ 100 billion.”
Damn heat. Raya
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it would become the first or second most valuable startup in the world at those prices, depending on how you count it. Startup is a weird word for a company that’s worth so much, but since Stripe still clings to the private markets as a sort of liferaft, continues to raise external funds, and is likely more focused on growth than profitability, retaining the distinctive qualities. of a tech startup, then of course we can call it a.
Which is odd, because Stripe is a huge concern that could be worth twelve digits, provided it hits that $ 100 billion price tag. It’s hard to find a good reason it’s always private other than the fact that you can get away with it.
Anyway, are the reported crazy prices possible? Perhaps. But they have a certain logic. Remember that Square
Yes Pay Pal Benefits noted a high volume of payments in recent quarters, which bodes well for Stripe’s recent growth. Also note that about 14 months ago, Stripe I was already processing “Hundreds of billions of dollars in transactions per year.”
You can do fun math right now. Let’s say Stripe’s processing volume was $ 200 billion last September and $ 400 billion today, considering that number as an annualized metric. Stripe charges 2.9% plus $ 0.30 for a transaction, so let’s call it 3% for the sake of simplicity and caution. These calculations oscillate at an execution rate of $ 12 billion.
Now the real numbers for the company could be closer to $ 100 billion, $ 150 billion, and $ 4.5 billion, right? And Stripe won’t have the same gross margins as Ample .
But you can begin to understand why Stripe’s supposed new prices aren’t 100% wild. You can make multiples work if you believe in the company’s growth story. And helping the plot are his public compositions. Square shares have more than tripled this year. PayPal’s value has more than doubled. Adyen’s shares almost doubled. It’s the kind of public market pull that can really help a very late start-up looking to raise new capital and get an aggressive price tag.
In conclusion, the possible reassessment of Stripe might make sense. The fact that it is still a private company is not.
Market Notes
Miscellaneous and Miscellaneous
And speaking of edtech, Equity’s Natasha Mascarenhas and our intrepid producer Chris Gates has created a special ep in the educational technology market. Can you hear it here. It’s good.
Cuddle and do some cardio