Online payments company, Stripe announced the latest round of funding which has made its co-founders world's youngest billionaires.
Online payments company, Stripe announced the latest round of funding which has made its co-founders world’s youngest billionaires. According to a Forbes report, the new funding has led to the company’s valuation at $9.2 billion. Strip reportedly raised and investment of $150 million from General Catalyst Partners and Alphabet and Google’s investment division called the CapitalG. This makes both the co-founders of the San-Francisco based company, Patrick and John Collison worth a minimum of $1.1 billion each. The famous investment lead to the doubling of valuation for the startup, as last year in July, a fundraising round had reportedly valued Strip at $5 billion.
Forbes estimated that the brothers will own around 12 percent of Stripe, each, after the $150 million investment. Before this, both of them had around 30 percent of the company. However, there is no information on the stakes or net worths yet. Meanwhile, John Collison Stripe’s president is just 26 years old. By being two months younger to Snapchat founder Evan Spiegel, John is not the world’s youngest self-made billionaire. Incidentally, his brother and Stripe CEO Patrick Collision and Snapchat co-founder Bobby Murphy, both 28 years of age are only other under 30 self-made billionaires.
However, they are not the youngest billionaires in the world. Alexandra Andresen, a 20-year-old from Norway is. She got 42 percent stake in Fred, her family owned investment company as inheritance, and so did her sister Katharina (21). They together have a $ 2.4 billion as fortune, Forbes reported. Stripe is known to help companies like Kickstarter, Lyft and Wish for online transactions, but it never discloses its own revenue. Forbes’ sources say that the company processed around $20 billion in 2015-16, and according to its share of transactions, the estimated revenue would be around $450 million in that year. The Wall Street Journal quoted a source who said that Stripe’s payment volume growth can exceed as much as 40 percent.
Both brothers from Ireland, John and Patrick did their college in the US and work there as well. John was a Harvard graduate while Patrick was from MIT. But interestingly both of them dropped out of college to create Stripe. They also had another startup called Cuppa which later merged with Auctomatic.