White-hot payments startup Stripe has closed a $20 million Series B round of financing, led by General Catalyst with existing A-list investors Sequoia, Peter Thiel (personally) and angels Chris Dixon, Aaron Levie and Elad Gil also following on. Redpoint will be coming on as a new investor.
Stripe’s valuation during this Series B was in the hundreds of millions, up to a half-billion dollars, according to a source (It’s unclear whether that valuation is pre- or post-money). The relatively under-the-radar company has already raised $20 million in prior funding from the aforementioned investors as well as PayPal co-founders Max Levchin and Elon Musk, with the under-reported $20 million Series A happening 12 months before this round closed.
While the startup has declined to share specific metrics, Stripe is “growing like Square” according to one well-informed source. In the same space as Braintree, Stripe wants to corner the online transaction market by streamlining the heinous process of building out a payments system.