Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last week, I noted Peloton’s secret weapons. Before that, I wrote about a new e-commerce startup, Pietra.
In one fell swoop, Stripe may disrupt the entire financial services ecosystem.
The $22 billion payments behemoth announced Stripe Capital this week, a provider of quick and easy to obtain loans for internet businesses. The company is expected to launch a card as well, according to TechCrunch’s Ingrid Lunden. What does that mean for recent upstarts like Clearbanc, a business that provides revenue-share agreements to help startups forgo selling equity to VCs, or Brex, which has created a credit card tailored for startups? Stiff competition ahead.
Led by brothers Patrick and John Collison, Stripe is known for developing payment processing software to facilitate online purchases. Doubling down on financial services, the company seeks to become the go-to capital provider to its