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Meet the world’s new youngest self-made billionaire
The cofounders of Stripe joined the ranks of the world’s youngest billionaires after the online payments company announced a new round of funding last week that valued the company at $9.2 billion.
Brothers Patrick Collison and John Collison are now worth at least $1.1 billion each after San Francisco-based Stripe raised $150 million from CapitalG, an investment division of Google parent company Alphabet, and General Catalyst Partners. With the latest investment, the startup’s valuation almost doubled. In July 2015 a fundraising round had valued the company at $5 billion.
Prior to the latest round, the Collisons owned about 30% of Stripe, according to a source close to the company. Following the $150 million investment, FORBES estimates that each brother owns at least 12% of the company. A spokesperson for Stripe declined to comment on the Collisons’ company stakes or net worths.
At 26, John Collison, Stripe’s president, is now the world’s youngest self-made billionaire — two months younger than Snapchat cofounder and CEO Evan Spiegel, who is also 26. Stripe CEO Patrick Collison, 28, and Snapchat cofounder Bobby Murphy, 28, are the only other self-made billionaires in the world under age 30. The world’s youngest billionaire is Norwegian Alexandra Andresen, 20, who inherited a 42% stake in family-owned investment company Ferd with her billionaire sister Katharina Andresen, 21. The sisters each have a $1.2 billion fortune.
The Collison brothers join six other Irish billionaires on FORBES’ World Billionaire List and are now Ireland’s youngest billionaires, though they live and work in San Francisco. Construction tycoon Pallonji Mistry, 87, is Ireland’s richest billionaire with a $13 billion fortune.
Stripe, which is private, processes online payments for clients including Lyft, Kickstarter and Wish. The company does not disclose revenue, but industry sources estimated that the company processed about $20 billion last year. For each transaction it processes, Stripe obtains 2.9% of the transaction plus 30 cents, translating to an estimated $450 million in revenue for 2015. The Wall Street Journal, which first reported on Stripe’s round of funding, said that the company’s payment volume growth is expected to exceed 40% according to a person familiar with the matter.
Stripe is the brothers’ second company. Their first company was Shuppa, which merged with another small startup Auctomatic, a company that builds software for eBay sellers, in 2008. The brothers attended college in the U.S.–John went to Harvard and Patrick went to MIT–but both dropped out to pursue what later became the idea for Stripe.
“Heartening as the success to date has been, we are so early in accomplishing the goals that we set out for ourselves,” Patrick Collison told FORBES in January 2016. “If anyone here believes that Stripe has already made it, that would be hugely problematic for us.”