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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: 0.001s | 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

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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.
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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?)?
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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.
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1. fierro ◴[27 Sep 18 17:07 UTC] No.18086472[source]▶
I would also like a rec