←back to thread

Stripe Is Now a $20B Company

(www.bloomberg.com)
563 points jonknee | 2 comments | 26 Sep 18 18:04 UTC | HN request time: 0s | source
Show context
briga ◴[27 Sep 18 02:21 UTC] No.18081703[source]▶
Stupid question: how does a $245 million dollars bring a company's valuation from $9 billion to $20 billion?

Last I checked, $245 million =/= $11 billion

replies(3): >>18081747 #>>18084086 #>>18086351 #
sophiebits ◴[27 Sep 18 02:36 UTC] No.18081747[source]▶
It means a VC paid $245 million to purchase 1.225% (which is $245M divided by $20B) of Stripe's stock.
replies(1): >>18082541 #
adtac ◴[27 Sep 18 07:02 UTC] No.18082541[source]▶
In transactions, is it typical to just create new stock such that the newly created stock is 1.225% of the final total? Would the previous investors agree to diluting their stock like that? Or is it common to sell from a common pool of stock that's owned by the company (who is that? the CEO? what is the company if not for the stock distribution?)?
replies(1): >>18082806 #
roel_v ◴[27 Sep 18 08:13 UTC] No.18082806[source]▶
You should read a book on this, it's not something that someone can/will explain in a one off paragraph comment.
replies(2): >>18083202 #>>18086472 #
1. adtac ◴[27 Sep 18 10:06 UTC] No.18083202[source]▶
Any recommendations? Thanks!
replies(1): >>18092366 #
2. roel_v ◴[28 Sep 18 10:49 UTC] No.18092366[source]▶
I was assigned several in lae school, they wouldn't be relevant to you. Any introduction book on corporate structure and corporate governance would do as a foundation (for your jurisdiction) I would imagine, any specific questions you would have after that would be answered in the followup material in the references of such a book.

Business school and law school students have to buy many books on these topics, and their resale value is low. Any second hand book shop has lots of them, so does abebooks. It doesn't have to be expensive, it's the time you have to invest that 'costs' (in the generalized economic sense) the most.