Dive Brief:
- Online payments company Stripe is set to raise enough venture capital to push its total valuation over $5 billion, according sources who spoke to Re/Code.
- It is still unclear how much money Stripe is raising in this latest round. Stripe has raised $190 million in financing previously, including a $70 million round in late 2014.
- Stripe's competitors include Braintree, which PayPal bought for $800 million in 2013.
Dive Insight:
Online payments company Stripe is the latest Silicon Valley startup to attract a substantial round of investment. The company is reportedly in talks to raise more money on top of the $190 million in venture capital it has raised so far, which would reportedly place the company’s total value at more than $5 billion.
Stripe’s software allows companies to accept online payments, and charges a base rate of 2.9% on transactions plus a 30-cent fee. Passing along as much as half of its fees to financial institutions, the company is in a race to attract the volume necessary to garner more favorable rates.
