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Stripe Is Now a $20B Company

(www.bloomberg.com)
563 points jonknee | 1 comments | 26 Sep 18 18:04 UTC | HN request time: 0s | source
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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 #
1. eloisant ◴[27 Sep 18 13:13 UTC] No.18084086[source]▶
That means the investor agrees that at the time he buy stocks, the company is no longer worth $9 billion but it's worth ($20 billion - $245 million). Basically because they developped their business, their technologies, hired/trained people, they "created" value and the company is worth more than before.

The funding itself doesn't increase the company valuation, but it validates it. Before funding the board can declare that the company is worth $XX billion, but the fact that an investor agrees to put money on the basis of that valuation makes it real.