Memo: John Collison says Stripe is in “no rush” to go public and its payment volume rose 25% YoY to $1T in 2023; source: Stripe hit ~$1B in Q3 2023 net revenue
Payments company has become a Silicon Valley bellwether as its valuation has risen and fallen over the past few years
Context & Ripple Effects
Stripe’s ability to defer an IPO builds on the capital-efficient, self-sustaining payments model described in coverage of its rise as a highly valued private company. The 2023 operating figures give that private-company stance a clearer business foundation.
Later coverage of a $159B employee share sale and faster revenue growth suggests that private-market liquidity remained an important alternative to a public listing as Stripe scaled.
First-order effects
- Stripe can prioritize operating growth over IPO preparation, while employees and investors have no near-term public-market exit to plan around.
- The reported rise in payment volume and quarterly net revenue strengthens Stripe’s position with merchants and partners that depend on its payments infrastructure.
Second-order effects
- Private-market investors and Stripe stakeholders are likely to place greater weight on secondary-share liquidity and operating performance rather than an IPO timetable.
- Other payments platforms face a tougher scale benchmark: Stripe’s transaction growth reinforces the value of broad merchant distribution and durable payments revenue.
Third-order effects
- If this pattern persists, late-stage infrastructure companies with cash-generating cores may treat IPOs as optional financing and liquidity events rather than a required milestone.
- The result could be a more durable split between public-market access and company maturity, with secondary transactions carrying more of the liquidity role for private firms.
The trend: Stripe is part of a broader shift in which scaled, revenue-producing private technology companies use operational strength and private liquidity to delay public listings.