Pipe is a fintech on the rise with its mission to be ‘the Nadsaq of recurring revenue,’ and its innovative two-sided platform. Since launching its beta stage in February 2020, the company has made waves in the alternative financing space.
Founded in Miami by Co-founders Josh Mangel and Harry Hurst, Pipe’s key service is offering SaaS companies an option for receiving revenue upfront through leveraging their recurring revenue. It does this by pairing the SaaS companies with potential, vetted, investors on a marketplace that pays a discounted rate for the annual value of those contracts. In a time where cash is king, this is invaluable for SaaS companies who can trade their revenue up front or invest it where needed to facilitate their growth. This offers an invaluable service outside of equity or venture debt for companies who may be in the early stages of their operations.
Today, over 3,000 companies are signed up to the platform ranging from early-stage and cash-poor to publicly traded companies. The first quarter of this year alone saw tens of millions traded across the Pipe platform with tradable ARR on the platform currently sitting in excess of $1 billion. Customers are assessed on the platform through a filter of key metrics. These are found through integrating accounting, payment processing, and banking systems that provide the data for Pipe to evaluate a company’s performance in order to determine a trading limit. Due to the company’s increased popularity, the Co-founder and Co-CEO has hinted at the fact that the company will explore offering its services to companies with recurring revenue outside of the SaaS vertical.
Supporting the company’s growth has been a succession of funding rounds with the latest closing Pipe’s valuation at $2 billion. The round has allegedly generated as much as $150 million in capital led by Baltimore, Maryland-based Greenspring Associates. Existing and new investors participated in what was described as a “massively over-subscribed” round for Pipe. This follows a very recent round that raised $50 million just a few weeks ago.
Excitement is rampant for Pipe, with its platform that is levelling the playing field for companies in the capital market. By focusing on a unique offering for SaaS customers and serving them well, Pipe has experienced massive popularity backed by big investment.