This week’s startup is marketed as the industry’s first subscription-based financing platform that enables investors and companies to turn their recurring revenue into upfront cash flow.
✍🏽 But first, a letter from the editor!
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⚾ The Elevator Pitch:
In today’s competitive market, if you want to succeed, you need to be nimble. This means you need to have capital on hand that allows you to make decisions quickly whenever necessary.
Pipe, a SaaS-based FinTech startup, can help you move in the right direction. Pipe gives companies easy access to capital, without giving up equity, by allowing investors to invest in an untapped asset class, recurring revenue streams.
👇 The Drop Down
Founded: July 2021
Tech trend: FinTech
Traction: 1000+ Active customers, raised several rounds of funding - $315 million, valued at $2B a team of 130+ employees, Registered subsidiary in US and UK, Featured on Financial Times, Forbes, Crunchbase, and Finledger.
Team - Serial entrepreneur, engineer, and corporate marketers
Harry Hurst | Zain Allarakhia | Brad Coffey
🔍 Why we like it
- 📈 Upfront payments is the trend
Recurring revenue is based on a traditional fixed income but with higher diversification and liquidity. It allows investors and businesses to fix an income-like product for recurring streams. Pipe offers direct market access to early-stage businesses, public traded entities, and bootstrapped companies. The company follows a proprietary model that provides a uniform way for businesses/investors to evaluate recurring revenue. The platform incorporates anonymized data points on each source, including performance, revenue and burn rates.
- 💸 Raised $250M Equity Round for $2B Validation
Pipe raised a total of $316 million since its launch in 2019. Their initial target was to steadily attract companies outside the network. In 2020, more than 1000 new companies have joined the platform, including industries such as food delivery, pharmacy, sports, telecommunication, entertainment, and property management - making a total of 4000+ companies since launch. The new funding will be used to fuel Pipe’s narrative of expansion both to new sectors and globally.
- ❄️ Raise Capital… Without Liquidating
It’s a common strategy that many companies raise capital when they are in urgent need of cash. Pipe allows companies to receive non-dilutive capital based on the health of the company, rather than give up equity. Pipe also allows investors to invest in recurring revenue streams.
🤝 Get involved with Pipe
- They are hiring
- Follow them on Twitter, LinkedIn, and Github
- Check out the Blog and Newsroom to learn more