Pipe 250M Funding Led By Greenspring Associates of Baltimore

Pipe 250m Series azevedotechcrunch

One of the prominent trading platforms, Pipe lured a whopping strategic equity fund investment of USD 250 million. After two months of assuring a USD 50 million equity round, this equity fund investment made the value of the firm USD 2 billion.

After all recent investments in this Miami-based startup in 2019, Pipe’s total funding plunged to USD 316 million. The pipe is the first subscription finance platform in the market. Pipe’s software platform enables SaaS providers to convert monthly or quarterly subscription payments into up-front cash flow.

After receiving USD 50 million in “strategic equity funding,” Pipe fundraising comes around two and a half months. Several prominent investors participated in this fundraising. Some of them include. As per Pipe 250m Series azevedotechcrunch

●   Jim Pallotta’s Raptor Group

●   Next47 at Siemens

●   Shopify

●   Slack

●   HubSpot

●   Okta

●   Chamath Palihapitiya of Social Capital

With this most recent round, the new funding raised “a big jump increase in valuation.” The Pipe has now compiled a total of around USD 316 million in funding.

According to co-founder and co-CEO Harry Hurst, the sale has now been completed. Pipe confirmed that it received USD 250 million at a USD 2 billion valuation in a massively oversubscribed round.

Harry Hurst said, “We had originally budgeted USD 50 million for the round, but we restrict it at USD 250 million even though we could have raised substantially more.”

Earlier the round was led by Greenspring Associates of Baltimore, Maryland, but now new investors also participated, such as per Pipe 250m Series azevedotechcrunch

●   Counterpoint Global of Morgan Stanley

●   CreditEase FinTech Investment Fund

●   Fin VC

●   3L

●   SBI Investment of Japan 

Previous investors, such as, also contributed to the most recent funding

●   Next47

●   Marc Benioff

●   Seven Seven Six

●   Mac Ventures

●   Republic

The pipe was launched in 2019 by Harry Hurst, Josh Mangel, and Zain Allarakhia. Hurst said Pipe has consistently drawn businesses beyond the SaaS sector as it was the initial aim. Pipe reached 4,000 companies since its 2020 debut, it added more than 1,000 new businesses to the platform this year from various sectors, including telecommunications, property management, food delivery, subscription pharmacy, sports, and entertainment.

According to Harry Hurst, “about 25% of the organizations currently using our platform are in non-SaaS categories.” Companies are beginning to realize they can scale their businesses by including Pipe in their capital stack. Trading regular revenue streams is proven to be the best method of financing once you have that growth engine. We are now a global trading platform for the asset class of recurring revenue.

Similar to prior rounds, the new money will support Pipe’s international growth and entry into new vertical industries. Hurst asserted that there are a plethora of addressable markets, from startups to publicly dealt enterprises.

At this moment, the majority of organizations have regular revenue layers, and those that still need to be considered add them. Growth of Pipe, according to Hurst, “has been ridiculous.” This statement explains how the organization was able to raise money at such a high value and generate such a high level of investor interest.

A trading platform like Pipe connects investors with businesses looking to raise money without diluting their stock. Since its start in June 2020, the company’s trading platform has attracted more than 4,000 new members.

The most recent round of funding for Pipe received a USD 100 million oversubscription from previous investors, including Reddit co-founder Alexis Ohanian’s venture capital firm Seven Seven Six and Salesforce.com CEO Marc Benioff’s investment vehicle TIME Ventures.

The business stated that it intended to utilize the funds to strengthen its platform and broaden its product line. As per Pipe 250m Series azevedotechcrunch

The pipe was established in September 2019 by Hurst, Josh Mangel, and Zain Allarakhia to provide SaaS firms with a mechanism to receive their revenue upfront by connecting them with investors on a marketplace that pays a discounted rate for the annual value of those contracts.

The platform aims to provide recurring income to enterprises. It allows them access to finance, so they won’t have to accept loans or risk diluting their ownership by doing so.

Tens of millions of dollars are currently traded each month on the Pipe platform, which has tradable annual recurring revenue that exceeds USD 1 billion and is growing toward USD 2 billion. The company indicated that tens of millions of dollars had been transacted throughout the first quarter when I last spoke with it in March as per Pipe 250m Series azevedotechcrunch.

Pipe’s platform evaluates a customer’s key performance indicators by connecting them with its accounting, payment processing, and banking systems. It can immediately evaluate the company’s performance and determine if they are eligible for a trading limit. Although, there is no upper limit on the size of a trading limit. The limit range from USD 50,000 to over USD 100 million for traded late-stage companies.

The pipe has no capital costs. On its platform, institutional investors compete with one another for projects. In exchange, Pipe assesses a fixed trading fee of up to 1%.

The startup employs 34 people and has been running on a lean and mean strategy. With its most recent funding, Pipe expects to double that amount by the end of the year. As per Pipe 250m Series azevedotechcrunch

While many businesses provide specialized niches with typical loan products, Newhall clarified to Techcrunch that Pipe is not a lender. Instead, it functions as a trading platform and does not generate revenue to distribute to clients. In place of getting a loan, Pipe connects customers with institutional investors directly to acquire the best possible pricing to trade their actual contracts.