Pipe

FinTech

Founded: 2019

Last Round Valuation: $2.07B

Pipe is an innovative trading platform designed to empower entrepreneurs in shaping the growth of their businesses according to their own terms. Established in 2019 by Harry Hurst, Josh Mangel, and Zain Allarakhia, the company is headquartered in Miami, FL. With a unique approach, Pipe recognizes the value of recurring revenue streams as valuable assets, offering companies the ability to swiftly convert their recurring revenue into upfront capital. By leveraging this platform, businesses gain immediate access to the funds they need for expansion and development.

Pipe Overview:

Pipe is a revolutionary trading platform that has introduced a groundbreaking concept in the world of business finance. Founded in 2019 by Harry Hurst, Josh Mangel, and Zain Allarakhia, Pipe is headquartered in Miami, FL, and has quickly gained recognition for its innovative approach to funding and growth.

At its core, Pipe aims to provide entrepreneurs and businesses with the flexibility and control they need to accelerate their growth on their own terms. Traditionally, companies have relied on various forms of financing such as loans, equity investments, or venture capital to fund their expansion. Pipe, however, offers an alternative solution that leverages the power of recurring revenue.

The key principle behind Pipe's platform is the recognition of recurring revenue streams as valuable assets. Many businesses, particularly those operating on a subscription or recurring revenue model, generate consistent and predictable income over time. Pipe allows these companies to unlock the latent value of their recurring revenue by providing them with an opportunity to convert it into upfront capital.

The process begins with companies connecting their existing business systems, such as their payment processors or subscription management platforms, to the Pipe platform. This allows Pipe to analyze the historical revenue data and assess the stability and predictability of the recurring revenue streams.

Based on this analysis, Pipe offers companies the option to sell a predetermined portion of their future receivables to investors on its platform. These investors, known as "funders," essentially purchase the rights to a portion of the company's future revenue at a discounted rate. In return, the company receives immediate access to a lump sum of upfront capital, equivalent to the present value of the future revenue stream being sold.

This innovative approach offers several advantages to businesses. Firstly, it eliminates the need to wait for future payments to realize the value of their recurring revenue. This immediate access to capital empowers companies to make strategic investments, seize growth opportunities, or address any pressing financial needs without delay.

Secondly, by converting future revenue into upfront capital, businesses can avoid taking on debt or diluting their ownership through equity financing. This maintains their financial independence and allows them to retain full control over their operations and decision-making processes.

Furthermore, Pipe's platform introduces a unique marketplace where investors can buy and sell these revenue-based assets. This creates a dynamic ecosystem that fosters liquidity and ensures that companies can access capital quickly and efficiently whenever they need it.

In summary, Pipe offers an innovative trading platform that transforms recurring revenue streams into upfront capital. By doing so, it empowers entrepreneurs to drive the growth of their businesses on their own terms. With its headquarters in Miami, FL, Pipe has rapidly gained attention as a disruptive force in the world of business finance, revolutionizing the way companies fund their expansion and development.

Founders:

  • Josh Mangel

  • Zain Allarakhia

  • Harry Hurst

Top Investors:

  • Craft Ventures

  • Fin Venture Capital

  • Tribe Capital

  • Fika Ventures

  • Greenspring Associates
  • Counterpoint Global
  • CreditEase FinTech Investment Fund
  • Uncorrelated Ventures

Funding History:


Date Share Type Amount Raised Raised to Date Issue Price Post Money Valuation Key Investors
May 2021 Series 1.4 $10MM $69.35MM $58.50 $2.07B Greenspring Associates, Counterpoint Global, CreditEase FinTech Investment Fund
May 2021 Series 1.3 $244.93MM $304.27MM $68.04 $2.07B Greenspring Associates, Counterpoint Global, CreditEase FinTech Investment Fund
Jun 2020 Series 1.0 $45MM $45MM $7.66 $237.73MM Fin Venture Capital, Tribe Capital, Uncorrelated Ventures
Jun 2020 Series 1.1 $4.77MM $4.77MM $0.81 $237.73MM Fin Venture Capital, Tribe Capital, Uncorrelated Ventures
Jun 2020 Series 1.2 $9.58MM $9.58MM $4.38 $237.73MM Fin Venture Capital, Tribe Capital, Uncorrelated Ventures

In the News:

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