Stripe’s $1.1 billion deal for crypto firm Bridge marks much-needed win for VCs
The Stripe logo on a smartphone with U.S. dollar banknotes in the background.
Budrul Chukrut | SOPA Images | LightRocket via Getty Images
In March 2022, venture capitalist Chris Ahn was pushing to get into a hot crypto startup that was trying to make it easy for businesses to transact using digital currencies.
The company was Bridge Network. As part of his pitch, Ahn flew to a small town in northern Montana with a term sheet in hand for founders Zach Abrams and Sean Yu, who had both previously worked at Coinbase and Block.
“Nobody else had flown out to see them in person,” Ahn, who was a partner at Index Ventures at the time, recounted in an interview on Tuesday.
The three of them hiked together on a path with melting snow, and then conversed over drinks and dinner, as Ahn aimed to convince the founding duo that they should take Index’s money. At the restaurant, he looked to seal the deal.
“I told them I was going to the bathroom, and I ran over to my car, grabbed the term sheet and came back,” Ahn said. “It’s hard to fit a piece of paper in a jacket without crumbling it, and I didn’t want to give them a crumpled piece of paper, so I left it in the car.”
Index landed the investment, getting into Bridge’s seed round in 2022. The firm was part of a more recent round, in August of this year, that included Sequoia and Ribbit Capital and valued Bridge at about $350 million, according to a person with knowledge of the matter who asked not to be named because the valuation was confidential. Also in the deal was Haun Ventures, founded by former Andreessen Horowitz partner Katie Haun.
Ahn left Index to join Haun in 2022. Both his old firm and his new employer have reason to celebrate this week, after Stripe agreed to buy Bridge for $1.1 billion. With that outcome, Index and Haun are poised to triple their investment in a matter of months.
An Index spokesperson declined to comment.
It’s a particularly notable exit for venture investors during an extended IPO drought, and marks a big win for crypto, which has had few of them despite bundles of cash pouring into the industry.
For Stripe, one of the most richly valued tech startups, the Bridge purchase will be its largest to date. Bridge said the transaction is still subject to regulatory approvals and other conditions and is expected to close in the coming months.
‘Serious about stablecoin’
Bridge describes itself as the Stripe of crypto, specializing in making it easier for businesses to accept stablecoin payments without having to directly deal in digital tokens. Stablecoins are a type of cryptocurrency whose value is pegged to the value of a real-world asset like the U.S. dollar. Customers include Coinbase and SpaceX.
“It’s a sign that Stripe is serious about stablecoins and crypto,” Ahn said. “Payments were the original use case for crypto, and it’s finally here.”
Stripe is paying a hefty premium.
Investors familiar with Bridge’s financials said annual revenue is in the range of $10 million to $15 million. At the low end of the range, that’s a multiple of 110 times revenue, and at the high end, it’s a revenue multiple of over 70.
“The reason why Bridge is so valuable is because it’s prohibitively difficult for a company to use this new stablecoin tech without developer tools that makes the tech easy to use,” said Ahn.
Nic Carter of Castle Island Ventures said that while Bridge has rivals in the category, it’s the most successful stablecoin infrastructure business in the world, excluding the issuers like Circle and Tether.
“Almost every stablecoin startup we talk to is building on Bridge in some capacity whether it’s orchestration or issuance,” said Carter. “They are totally ubiquitous.”
Stripe saw its valuation plummet from $95 billion in 2021 to $50 billion last year, as private tech companies across the board took a major hit from the recalibration of the public markets. Its valuation reportedly rebounded to $70 billion this year as part of a secondary share sale.
Patrick Collison, chief executive officer and co-founder of Stripe Inc., left, smiles as John Collison, president and co-founder of Stripe Inc., speaks during a Bloomberg Studio 1.0 television interview in San Francisco, California, U.S., on Friday, March 23, 2018.
Bloomberg | Bloomberg | Getty Images
Brothers Patrick and John Collison, who founded Stripe in 2010, have intentionally steered clear of the IPO process and have given no indication that an offering is on the near-term horizon. They’ve got a big business, with total payment volume surpassing $1 trillion in 2023.
Given private market demand for the company’s stock, the company has been able to offer some liquidity to early investors and employees in other ways.
“The private markets have been so generous with providing capital and secondary liquidity to shareholders that, if I’m the Collison brothers and I’m sitting around the table, I’m thinking, ‘Why do I want to go public?'” said David Golden, a partner at Revolution Ventures who previously led JPMorgan Chase’s tech investment banking practice. “Why bother if the private markets are willing to reward you with basically public market premiums and valuations and let you have secondary sales to keep your employees happy?”
When asked to comment, Stripe referred CNBC to CEO Patrick Collison’s post on X about the deal.
Collison called stablecoins “room-temperature superconductors for financial services” in his post, and said that Stripe is going to build the world’s best stablecoin infrastructure.
Bernstein analysts are bullish on what the deal means for the $160 billion U.S. dollar-pegged stablecoin market, noting in a report that the acquisition “validates the usage and growth of stablecoins as a legit use case for public blockchains.”
WATCH: Ripple’s XRP drops as Chris Larsen reveals $10 million donation to Harris campaign
Environment
Former Tesla, Lucid execs form new EV brand Longbow, whose first two models are sharp and ultra-light
A new niche EV brand, Longbow, has emerged into the public eye, hailing itself as ” the first-ever British electric sports car manufacturer. ” It has unveiled its first two featherweight models, inspired by British automotive icons and designed with real-road performance and the overall driver experience in mind. Despite debuting today, the limited hand-built production of these two featherweight EVs is expected to begin relatively quickly, and they start at a price that doesn’t just cater to the affluent.
You’re not alone if you haven’t heard of Longbow until today. The young brand was founded as recently as 2023 by Daniel Davey, Jenny Keisu, and Mark Tapscott – three industry veterans with a combined resume that cannot be ignored. Davey and Tapscott worked at Tesla during the development of the original Roadster, followed by senior positions at both Lucid Motors and BYD. Keisu brings experience and leadership from the electrified marine segment as she was formerly the CEO of X Shore – an electric boat developer no stranger to the Electrek homepage.
Although Longbow was only founded two years ago, its trio of founders say the EV brand is the realization of many more years of planning and preparation. They have since expanded their team to include an arsenal of engineers with backgrounds in road and motorsport, including former employees at Aston Martin, Formula E, Lotus, and Tesla.
The Longbow team has tasked itself with delivering world-class BEVs that are “spiritual successors” to the icons of British automotive, such as the Lotus Elise and Jaguar E-Type, reimagined for the modern world with bespoke EV platform technology and supreme dynamics. Their take on this legacy is a lineup of sleek vehicles designed, engineered, and built in the UK as Featherweight Electric Vehicles (FEVs).
The young company hit a milestone today, unveiling its first two EV models – the Longbow Speedster and the Roadster; check them out.
Longbow’s first two EVs set to arrive in 2026 under $93k
Per a press release from Longbow, this is the first look at its first two featherweight EVs, which include a Speedster convertible and a Roadster. As FEVs, both models will weigh under 995 kg (2,193 lbs) and achieve the automaker’s motto, “Celeritas Levitas,” or “the speed of lightness.” Per the company:
Development of the Longbow Speedster and Roadster has pursued a singular philosophy: simplify, focus on beauty and engagement, then relentlessly add lightness, until all that remains is sheer automotive intoxication. Antithetical to conventional notions of what a battery electric vehicle (BEV) can be, Speedster and Roadster are striking, light, nimble, balanced, and engineered for an unparalleled driving experience.
The Speedster and Roadster sit atop an aluminum chassis designed for maximum stiffness while offering as little necessary weight as possible. The EV frame is complimented by lighter and more compact motors and batteries (something Lucid Motors is constantly celebrated for). These design elements combine to deliver what Longbow calls “the world’s first ‘proper’ all-electric sportscar for the modern enthusiast.”
The open-topped Speedster weighs 895 kg (1,973 lbs) and can accelerate from 0-100 km/h (0-62 mph) in 3.6 seconds. It has a WLTP range of 275 miles. Longbow shared that the closed cockpit Roadster EV will follow the Speedster, weighing 995 kg while achieving the same 0-100k m/h time. It has a WLTP range of 280 km (174 miles)
As mentioned above, both models will be hand-built in the UK and are expected to hit the market in 2026. The Speedster will start at a price of ₤84,995 ($92,600), including VAT, and only 150 examples will be built. That build schedule will include 10 Luminary First Edition and 25 Autograph Edition models.
The Roadster’s starting price is ₤64,995 ($70,850), including VAT. It will include 50 Luminary 1st Edition models or 100 Autograph Editions. Reservations for both Longbow EVs are available now.
What do we think? Will these FEVs actually get made? Or is this another startup with cool designs that will run out of money before it scales? I hope it’s the former!
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Environment
Tesla Takedown movement fights back against Musk/Trump after push to label them as ‘domestic terrorists’
The Tesla Takedown movement is fighting back against claims made by Elon Musk and Donald Trump while protests are ramping up.
Earlier this week, Tesla CEO Elon Musk falsely accused the movement of Tesla protests to be financed by the Democratic Party’s ActBlue PAC, and President Trump tried to tie the protests with vandalism against Tesla vehicles and stores.
Trump went as far as claiming that “violence against Tesla dealership will be labeled as domestic terrorism.”
The Tesla Takedown movement has issued a statement in response to make it clear that they are against violence and destruction of property:
We are a nonviolent grassroots protest movement. We oppose violence and destruction of property. Peaceful protest on public property is not domestic terrorism. They are trying to intimidate us. We will not let them succeed.
Their intention is to continue peaceful protests and they are in no way associated with the destruction of property – nor is there any evidence that they have been.
Tesla Takedown account on BlueSky added:
“We will not be bullied or allow our rights to be trampled on or stolen. If you’re ready to show Donald Trump and Elon Musk that there are no kings in America, join a Tesla Takedown protest in your community this weekend.”
Several more protests are now being organized for the next few days and into the weekends.
There are currently dozens of protests planned at Tesla stores and charging stations in the US, Canada, and Europe in the coming days.
Electrek’s Take
This is a slippery slope. I certainly condemn the destruction of the property of Tesla owners or vehicles and locations owned by Tesla.
It’s dangerous, and it doesn’t help the Tesla Takedown cause, but it seems to be a stretch to label that “domestic terrorism.”
As far as I can tell, the movement has never called for it. They have only called for peaceful protests, and they shouldn’t be associated with actions taken by extremists.
People have reasons to be mad at Musk and Trump, who are targeting social security, calling government officials “traitors” for supporting Ukraine, and alienating entire nations with senseless trade wars.
If they attack things they care about, is it unfair for them to attack things Elon cares about?
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It’s finally here. Toyota unveiled its newest EV, the C-HR+, a surprisingly stylish electric SUV. The smaller SUV will sit below the bZ4X and offer more range, a sleek new look, and faster charging. With an expected lower price tag, the Toyota C-HR+ could just be the affordable electric SUV we’ve been waiting for.
Toyota unveils the new C-HR+ as an EV
Remember Toyota’s compact C-HR? It’s back and better than ever. Toyota discontinued it in the US in 2022, replacing it with the more efficient Corolla Cross hybrid and first electric SUV, the bZ4X.
Toyota is reviving the name as it revamps its EV lineup. At its annual product strategy event last week, Toyota showcased an array of new EVs that are coming soon, including the new C-HR+.
The electric C-HR already looks like a massive upgrade over the discontinued gas model. Its clean, modern look is similar to Toyota’s other updated vehicles, such as the Corolla, Crown, and Prius. It will be available in both front and all-wheel drive configurations.
With two battery options, 57.7 kWh and 77 kWh, the C-HR+ EV has a WLTP driving range of up to 372 miles (600 km).
Outside of its GR performance models, the AWD version will be Toyota’s most powerful vehicle in Europe. With up to 343 horsepower (252 kW), it can sprint from 0 to 100 km/h (0 to 62 mph) in 5.2 seconds.
The FWD model with the 57.7 kWh battery packs 167 horsepower (123 kW) while the larger 77 kWh battery delivers 224 horsepower (165 kW).
Inside, Toyota claims its new electric SUV is a “class above” with an extended wheelbase providing an open, welcoming feel. The C-HR+ features a standard 14″ infotainment with dedicated EV routing.
Toyota loaded it with its latest connectivity and safety tech, including Toyota Safety Sense active safety and driver assistance systems.
Safety features like a Blind Spot Monitor, Adaptive High-Beam headlights, and a Parking Support Brake are now standard. Higher trims gain Park Assist and a Panoramic View Monitor.
Although official specs will be revealed closer to launch, Toyota said the electric SUV can achieve DC fast charging speeds of up to 150 kW. The company finally added a battery preconditioning feature for better performance.
At 4,520 mm (178″) long, the C-HR+ EV version is slightly longer than the previous gas model. It’s also a bit shorter than the Toyota RAV4.
Toyota will launch the electric SUV later this year in select European markets, with a full rollout in Europe scheduled for 2026. For those in the US, we’ll have to wait for the official word, but if it does arrive, which would likely be in 2026, the C-HR+ would sit below the bZ4X.
With the 2025 bZ4X starting at $37,070, we could see Toyota’s smaller electric SUV start in the $30,000 range. At that, it could be a true competitor in the US.
How do you feel about Toyota’s new electric SUV? Would you buy one in the US for around $30,000 to $35,000?
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