Stripe has announced the launch of Stripe Capital, a new lending program for online businesses. As part of their mission to facilitate investment in growth for small digital businesses, loans are approved through an expedited process, funds are deployed the next day and business owners repay the principal as and when the business earns sales revenue rather than on a fixed day of the month. While competitors in the space include PayPal and Square, a recent valuation of $22.5 billion makes Stripe the most valuable private fintech company in the world.
The SaaS world saw Stripe give its annual conference Stripe Sessions, where co-founder and CEO Patrick Collison gave a keynote announcing a new corporate credit card for online businesses, Stripe Capital and the company’s rising growth statistics. Stripe has now surpassed hundreds of billions of payments processes as well as the 2,000 employees mark. In a mission to be the fastest-improving payments processor, Stripe has invested in several new offices including New York and Mexico City, as well as a new remote hub for a global network of engineers to push out the 4,000 new API versions developed over the past year. Stripe also announced the reason for their heavy international investment is due to the fact that 5 out of 6 new internet users comes from outside the US, and Stripe wants to be there to support companies as they grow their global footprints.
In market news this week, WeWork will target a Nasdaq IPO in the $20 – $30 billion valuation range, well below the initial $47 billion range set by the company. In an amended filing late this week, WeWork also submitted limitations on owner and CEO Adam Neumann amidst concerns over his control of the company, stock sales and the alleged conflict of interest arising from his ownership of property which he leases back to WeWork.
New in FE exclusive listings this week we have a 16 Year old B2B Software Development Tools Business valued at the $758,000. This reputable brand has 16 years of operational history in the high-growth code hosting niche, having served over 100,000 users, many of which from highly reputable software companies. With steady MRR of $21K supported by strong net margins, this business has managed to develop highly attractive SaaS metrics with high LTV of c.$1,650, and low customer churn of around 1.5% over the LTM. Please follow the link above to request a prospectus.
In events *TONIGHT*, the FE team is looking forward to Activated’s inaugural event! Over 150 entrepreneurs, founders and CEOs will gather in the Bay Area to break down mental health and wellness barriers commonly faced in the fast-paced world of business. Make sure to register here using code ACTIVATEDFEI as it is invite-only and this is not an event to miss!
Listings
New
SaaS – 16 Y/O B2B Software Development Tools – $21K MRR
- Reputable brand with sixteen years of operational history in the high-growth code hosting niche
- Clear value proposition with tens of thousands of development teams serviced and a list of notable clients
- Steady cash flows with more than $21,000 in MRR supported by strong net margins
- Highly attractive SaaS metrics with high LTV of c.$1,650 and low customer churn of c.1.5% in the LTM
- Extensive list of essential features with positive reviews from third parties
Yearly net profit: $192,000
Asking price: $758,000
Affiliate – Bicycles & Accessories Blog – $4.4K gross/mo
- Firm foothold in the bicycle and accessories niche, valued at over $47.5 billion
- Growing traffic profile with over 568,000 visitors over the LTM
- Impressive monthly revenue growth with earnings rising at a c.45.8% CMGR over the LTM
- Dominant SEO presence with keyword rankings of c.40,000 keywords
- Simple business operations requiring minimal owner involvement
Yearly net profit: $57,200
Asking price: $158,000
Advertising – 20 Y/O Tourism Blog – $1.9K gross/mo
- Over 20 years of operational history leading to a firm positioning in the Scottish tourism niche
- Impressive volume of traffic with over 270,000 visitors over the L12M
- Keyword rankings for 7,700 keywords
- Lean cost structure driving high net margins
Yearly net profit: $21,500
Asking price: $72,500
Sold
Digital Service – B2B Virtual Assistant Services – $37K MRR
SaaS – B2B Chatbots and Workflows – $21.1K MRR
Affiliate – Cookware & Supplies Review Blog – $3.9K gross/mo
Display Advertising – Pet Supply Review Blog – $3.6K gross/mo
In the News
Shopify Acquires 6 River Systems
Warehouse robot producer, 6 River Systems Inc, is soon to be acquired by Shopify. The company is reported to be sold at a price of $450 million dollars. The acquisition is said to add a significantly improve Shopify’s distribution services as they aim to expand their physical distribution efforts. A team with expertise in automated fulfillment operations from 6 River Systems will be joining the Shopify team to help implement the new collaborative robots which are designed to work alongside warehouse operators. The new acquisition is the latest effort by Shopify to inexpensively and efficiently increase output.
Stripe Sessions Key Announcements
This week, Stripe Sessions was held in San Francisco where Stripe revealed several initiatives to grow their Global Payments and Treasury Network. Stripe Capital, one of the latest ventures by Stripe is changing the way we interact with financial services. Stripe capital provides fast and easy loans to internet businesses so startups can have access to quick financing. In addition, the payments software platform launched the Stripe Corporate Card which will allow employees of a business to easily handle expenses. The card will simplify the spending management process and allow companies to earn credit as they scale.
WeWork files to list on Nasdaq
WeWork is facing an unfavorable valuation in the wake of their upcoming IPO with shares announced to be listed on the Nasdaq Index. Once valued at $47 billion dollars in early 2019, the real estate unicorn has faced notable losses in the past few years leading to a nearly 50% decrease in reported value. Softbank is a major investor for WeWork and invested when WeWork was valued at $47 billion. The company will now likely have to push their IPO date in order to create time to raise more capital as it is estimated to be priced around $20 billion at this point in time. As WeWork heads out on its IPO roadshow, they will need to convince willing investors they “deserve a tech company multiple” as stated by REITs analyst, Jeffrey Langbaum.