Payments startup Stripe has changed the landscape for how businesses can collect funds online by using a few lines of code, and today the company is announcing that it’s picked up more funding of its own. Stripe has raised $245 million, valuing the company at $20 billion. This is a big jump on its previous round, two years ago, that valued it at $9 billion. Led by Tiger Global Management, other new backers included DST Global and Sequoia, along with existing investors Andreessen Horowitz, Kleiner Perkins, Khosla Ventures, General Catalyst and Thrive Capital. The company says it plans to use the funding to hire more people for what it describes as its “distributed global engineering team.” It now has hubs in San Francisco, Seattle and Dublin (its co-founders, John and Patrick Collison, hail from Ireland), and it’s also going to launch a new hub in Singapore. Engineering has been at the heart of the company’s growth from the start, up to now. Recall the famous essay by Paul Graham about Stripe that served as a mantra of sorts for how startups should grow. Fast forward to today, and Stripe boasts that “all told, the company deployed more than 3,200 new versions of its core API over the past year.” The funding underscores the continuing strong climate for raising money from private backers at increasingly staggering valuations. VCs and private equity firms have raised billions, and they are looking for fast-growing, promising startups where they can invest that money. A number of startups are foregoing, or delaying, going public in favor of staying private for longer, financed by them. “We have no plans to go public,” said John Collison in an interview. “We’re fortunate to be in the position that the Stripe business is performing very well and the long-term opportunity is that we’re very optimistic to providing the richer stack to businesses. Strong businesses do not always tend to be dependent on outside funding.” (Not all are following this route: a key competitor of Stripe’s, Adyen, had a very strong IPO debut earlier this year.) Stripe itself is a prime…
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The ability to seamlessly move money has always been at the core of our economy. It enables the exchange of value, makes it possible to build new businesses, and fuels long-term growth. It’s been with us, in one form or another, since the very beginning of civilization. In 9000 BC, people traded grain, cattle, and jewels. A generation ago, people relied on cash, cheques and paper invoices. Today, we have credit cards and mobile wallets such as Apple Pay. The technology underpinning money movement has changed, but the fundamental needs of business owners have remained consistent. There are four key things that all business owners want to know: How much money do I have? Who do I owe? Who owes me? Am I making a profit? At Xero, we’re always working to help our customers answer these four questions quickly and easily, so they can make informed decisions about what is right for the business. One of the most important ways we do that is by continuing to strengthen our open platform and partnering with leading companies enabling our customers to access all of their data in one place. Xero + Stripe: Helping Businesses Get Paid Faster One of our most important global partners is Stripe, an innovative technology company that provides online payments processing for internet businesses. Stripe’s mission is to grow the GDP of the internet and to help technology companies of every size build better and bigger businesses. The Stripe integration with Xero makes it easy for businesses to get paid faster because their customers can pay your invoices using their preferred credit or debit card. Find out how to add Stripe to your invoices here. Last week, Xero’s Mary Buckley, Head of Financial Partnerships for the Americas, joined Jeanne DeWitt, Head of Sales at Stripe, to talk about the future of global payments on a panel at Stripe Sessions in San Francisco. As Mary explained, “Xero’s primary focus has been to help small businesses understand how much money they have, what do they owe, what do others owe them and are they making a profit. Integrating…
Berkshire Hathaway has reportedly agreed to buy a stake in One97, the owner of India’s largest digital payments service Paytm . This would mark the first time the investment firm has invested in an Indian startup. According to Indian financial news site Mint, which first broke the news, Berkshire Hathaway, the investment firm headed by Warren Buffett, is set to buy shares worth about $300 million to $350 million, at a valuation of about $10 billion to $12 billion. Another report in Bloomberg says Berkshire Hathaway will acquire a 3% to 4% stake in One97. Paytm’s investors already include SoftBank, which led a $450 million round in Paytm earlier this year, and Alibaba. Already India’s largest digital wallet and payment service with 230 million registered users, Paytm has recently focused on adding a host of new mobile services that could potentially turn it into a WhatsApp competitor, including a messenger and games. A spokesperson for One97 declined to comment. TechCrunch has also contacted Berkshire Hathaway.
Patreon is forming a patronage empire. Today it acquired white-labeled subscription membership platform Memberful, which lets creators sell exclusive access to content through their own site instead of a centralized platform like Patreon. Rather than being folded into a Patreon feature, Memberful will run as an independent brand, maintaining its tiered pricing structure, though new sign-ups will get a rate closer to Patreon’s low 5 percent rake. Terms weren’t disclosed for the deal that brings Memberful’s whole seven-person team and 500 paying clients aboard. But Patreon clearly sees rolling up competitors and complements in the patronage space as a worthy use of its $60 million raise at a $450 million valuation late last year that brought it to $105 million in funding. In June, Patreon bought Kit to let creators bundle in merchandise with their perks for paying monthly subscribers. It also bought out competitor Subbable back in 2015. By teaming up, Patreon and Memberful will be able to provide subscription patronage services for creators, whether they want their fan community to live on Patreon, or through Memberful on their own WordPress or website with integrations of Stripe and MailChimp. Patreon already has 2 million patrons paying an average of $12 each to a total of 100,000 creators, and it expects to pay out $300 million in 2018 alone. The acquisition could let Patreon move up market, recruiting comedians, illustrators, game developers and vloggers that already have an established audience elsewhere. “I think membership is on the up and is going to grow for the next decade,” says Patreon VP of Product Wyatt Jenkins. “Our strategy is to be an open, neutral platform,” as opposed to focusing on one type of content like YouTube with videos or Twitch with streaming where you’re locked into that platform’s tools. Memberful, launched in 2013, has bootstrapped the creation of its white-labeled tools without the need for venture funding. Memberful gives creators like Stratechery’s Ben Thompson (who has an interview with Patreon CEO Jack Conte about the acquisition) and podcast producer Gimlet Media full control over branding, with no Patreon chrome. But it’s more…
Owning your own business provides a rewarding experience. As your own boss, you can set your hours and your priorities. You are also free to pursue the work that you find rewarding and fulfilling. But no matter how much you love what you do, collecting your pay remains a necessity. After all, if you don’t […] The post What’s the Most Important Part of Cash Flow? Invoice Terms appeared first on SmallBizClub.
It’s no secret that running a business is tough. You knew it long before you even started down this path. You’ve heard all the stats before—over 20% of all small businesses fail within the first year, and more than half don’t make it to five years—and everyone you spend any time with at all feels […] The post 7 Simple Ways to Ensure You Get Paid on Time appeared first on SmallBizClub.
At the “Dell in Brooklyn 2018” event, Ramon Ray, editor of Smart Hustle Magazine, speaks with an “A-list” of business owners to get their advice on the power of technology in their businesses. Watch this short, 4 minute video to learn 7 different perspectives which will give you ideas and inspiration on using tech in your own business. Watch the interview and see the list of tips and “A-list” interviewees below Brittney Winbush, CEO – Alexandra Winbush – @voguebritt (Candle’s, tea’s and more) Technology is how I reach my audience and deliver products to consumers and share my brand. Gina Noy , President – Noy Tax – @gina_tax Evaluate your technology needs, evolve, and be consistent. Rachel Tipograph, Founder and CEO – Mik Mak – @racheltipograph or @mikmaktv AI will replace a lot of day-to-day minutia. Look for skills to supplement AI. Rob Walsh – Frm, NYC Commissioner of the Dept of Small Business Services Technology plays an even greater role these days as we put our cities together. Basha Rubin, CEO & Founder – Priori Legal – @priorilegal Technology will be a rising tide in the law industry. Stacey Moeller – Tiny Acre Farms Technology is crucial to business, especially when trying to connect with your target customer. Rahem Fagiri, CEO – APTDECO.com – @AptDeco We use technology on the back end to help coordinate logistics, optimize workflows and control costs.
Blockchain technology is everywhere. The interest in cryptocurrencies increased significantly last where when Bitcoin reached $20K. Though the price of Bitcoin decreased, interest in bitcoin and other cryptocurrencies didn’t fade. Several businesses have started accepting cryptocurrencies such as Subway, PayPal, Shopify, Microsoft, and alike. No doubt, crypto payments provide businesses and ecommerce with an additional […] The post How SMBs Can Receive Payments from Crypto Holders appeared first on SmallBizClub.
Small businesses, freelancers and “solopreneurs” alike know all too well that steady, predictable cash flow is a peace of mind that is not always guaranteed. Luckily, there are some things you can be doing to mitigate those dips and help make your financials get into a more reliable state, month after month. Update Billing Cycles […] The post Have Uneven Cash Flow? 5 Ways to Smooth It Out appeared first on SmallBizClub.
You finish the job and send your client the invoice. And then you wait for your payment. And then you wait some more. You silently wonder if you should contact your client, but you know that they will pay – eventually. Sound familiar? We’ve all been there. The problem is that not getting your pay […] The post 4 Surefire Tips to Get Clients to Pay Faster appeared first on SmallBizClub.