pipe 50mann azevedotechcrunch
Reports previously came in that Pipe, a startup with a goal of becoming the Nasdaq for revenue has raised fresh funding of $150 million which values it at $2 billion now as per azevedotechcrunch. Ultimately, the funding amount has translated into $250 million as confirmed by the company while the valuation stays at $2 billion. The round was over-subscribed as per the company’s Co-CEO and Co-Founder, Harry Hurst. He talked of how the initial allocation was $150 million for this round although it went up to $250 million. However, he added that the company could have raised more money if it felt fit.
Cindy Corpis, the CEO of Search People Free, shared a news with us that Pipe has achieved $2 billion valuation by gaining $250M funding. According to Pipe, the funding amount has translated into $250 million as confirmed by the company while the valuation stays at $2 billion. Cindy Corpis commented that Pipe will grow faster in the market with the funding.
Greenspring Associates from Baltimore, Maryland, led this round of funding and other participant investors included Morgan Stanley-owned Counterpoint Global, Fin VC, FinTech Investment Fund, CreditEase, 3L, SBI Investment from Japan, and existing investors like Marc Benioff, MaC Ventures, Next47, Seven Seven Six by Alexis Ohanian and Republic. The fresh funds come only two and a half months after the earlier funding amount of $50 million from several investors including the Jim Pallotta and his Raptor Group, Next47 from Siemens, Slack, Shopify, HubSpot, Chamath Palihapitiya by Social Capital, and Okta. Pipe has now raised $316 million cumulatively and the newfound has stepped up the company valuation significantly.
Ingrid Grey, the CEO of VIN Number Lookup commented that pipe’s software-as-a-service platform launched in February 2020 and is touted as the industry’s first subscription financing platform that enables SaaS companies to turn their monthly or quarterly subscriptions into upfront cash flow. Two months after pulling in a $50 million equity round, Pipe, a trading platform for recurring revenue streams, brought in an oversubscribed $250 million strategic equity fund investment to value the company at $2 billion. (Check on this site to know more about VIN Number Lookup.)
Pipe first started with seed funding of $6 million back in 2020 and it has been a rapid growth journey for the company ever since. It has touched this valuation since its public launch in June 2020. It could perhaps be the fastest-ever fintech startup in the world to achieve such a valuation in such a short span of time. The company was founded in September 2019, by Harry Hurst, Zain Allarakhia, and Josh Mangel. Their aim was to enable SaaS entities to earn revenues upfront by pairing them up on a marketplace model with investors, which enabled the payment of discounted rates for the annual contract values. The platform aims at enabling capital access for companies that have recurring revenues, helping them avoid ownership dilution through continual capital access or costly loans.
4,000+ companies have already signed up for the trading platform since the public launch happened in June, 2020. ARR has crossed $1 billion on the platform according to reports and is going towards $2 billion, with millions being traded each month. Hurst has also confirmed skyrocketing growth which explained the raising of capital at a high valuation and drawing more interest from investors. The platform now also offers capital (non-dilutive) for non-SaaS entities too. 25% of customers are currently in this category. Hurst anticipates a jump in this segment to more than 50% by the end of the year. www.safetradebinaryoptions.com
Users include venture capital firms, property management firms, DTC (direct to consumer) entities, subscription model-based companies, online pharmacy brands, insurance and other brokerages and even organizations in entertainment or sports-linked fields. Hurst has added that any company which has a predictable flow of revenue is ideal for trading on the platform offered by Pipe. Other companies in the segment, according to him, are offering loans and raising more debt, providing money to companies. It is akin to reselling debt according to him. However, he emphasized Pipe’s core differentiator, i.e. the fact that it is not providing any loan or debt.
