The highest valued company in Bessemer’s annual cloud report has defied convention by staying private – ProWellTech
Bessemer Venture Partners this year The Cloud 100 Benchmark Annual Report was released recently and my colleague Alex Wilhelm looked at some general trends in the report, but digging into the data, I decided to focus on the top 10 companies by rating. I found that the best company defied convention for a couple of reasons.
Bessemer looks to private companies. Once they go public, they lose interest, which is why some startups come in and out of this list every year. For example, Dropbox was by far the most popular company with a valuation in the $ 10 billion range for 2016 and 2017, the first data in the report. It went public in 2018 and then disappeared.
While that $ 10 billion benchmark remains a pretty good measure of a cloud company with solid value, one company in particular has swept the field in terms of valuation, such a huge outlier, its value makes even the mighty seem dwarf. Snowflake, which was valued at over $ 12 billion before it went public earlier this month.
That company is Stripe, which has another worldly valuation of $ 36 billion. Band began its ascent to the top of the charts in 2016 and 2017, when it sat behind Dropbox with a valuation of $ 6 billion in 2016 and around $ 8 billion in 2017. For now, Dropbox left the chart in 2018, Stripe would likely have moved on when its valuation soared to $ 20 billion. It hit around $ 23 billion last year, before taking another huge leap to $ 36 billion this year.
Stripe remains an outlier not only for its huge rating, but also for the fact that it has not yet been made public. As ProWellTech’s Ingrid Lunden pointed out in an article earlier this year, the company has remained quiet about its intentions, even though it has lately been speculated that an IPO may be on the way.
What Stripe has done to earn that crazy rating is to be the cloud payment API of choice for some of the biggest companies on the internet. Consider that Stripe’s customers include Amazon, Salesforce, Google, and Shopify, and it’s not hard to see why this company is rated so highly.
Stripe came up with the idea of making it easy to integrate a payment mechanism into your app or website, which is time-consuming. Instead of building their own, the developers took advantage of Stripe’s ready-made variety, and Stripe gets some cash every time someone knocks on the payment gateway.
When you talk about some of the largest companies in the world involved and many more large and small, all those payments that are made through Stripe’s systems add up to a significant amount of revenue, and that revenue has led to this amazing valuation.
Another company you might pay attention to here is UIPath, the robotic process automation company, which was right behind Snowflake with a valuation of over $ 10 billion. While it’s unclear whether RPA, the technology that helps automate legacy workflows, will have the lasting power of a payments API, it has certainly gotten strong over the past couple of years.
Most of the companies in this relationship appear for a couple of years as they become unicorns, watch their values soar, and eventually go public. Stripe up to this point has chosen not to, making it a very unusual company.