WSJ News Exclusive | Investors Clamor for a Bigger Piece of Payments Company Stripe

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Stripe isn’t a household name, but the fintech is now the most valuable private company in Silicon Valley. Investors bought roughly $1 billion in a recent tender offer, and they would have bought more if they could.

Stripe Inc. has yet to go public, but investors are still craving a piece of it.

The company, which processes payments for e-commerce businesses, recently offered investors the chance to acquire sizable stakes in the company from existing shareholders, including current and former Stripe employees, according to people familiar with the transaction. Bids from those investors exceeded $4 billion, some of the people said.

But only about $1 billion of those bids were filled, one of the people said, suggesting that many current Stripe shareholders believe their stock has a long way to climb. Among the largest buyers were mutual-fund giant Capital Group Cos., venture-capital firm Sequoia Capital, e-commerce company Shopify Inc. and buyout firm Silver Lake, some of the people said.

Silicon Valley is awash with investors looking for new places to park their money, partly because low interest rates have made some traditional investments unappealing. Stripe, in particular, has garnered interest because

 

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Very cool for Shopify. They have been on investment spree lately in all of these companies… • Stripe, Global-e, Swyft, Pipe, Affirm, and Bench. Each of these companies that $SHOP recently invested in have potentially HUGE growth ahead.

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