Pipe, which claims to be the world’s first trading platform for recurring revenues, has closed a $50m strategic funding round.
The investment was led by Raptor Group and Siemens Next47. Other participants include Shopify, Slack, HubSpot, Okta, Chamath Palihapitiya, Marc Benioff, MSD Capital, Republic, Alexis Ohanian and Joe Lonsdale.
A minority of the investment was allocated to secondary.
Proceeds from the round will help Pipe grow its global footprint and deepen its partnerships.
Pipe claims is has created a new asset class that turns recurring revenue streams into non-dilutive upfront capital for growth. Its trading platform gives direct access to capital markets for businesses of all sizes.
It is designed for companies looking to access their booked revenue up front by turning quarterly or monthly recurring revenue into annual recurring revenue cash flow.
The platform entered beta mode in February 2020 and launched publicly in June 2020. During its short time active, it claims there is already in excess of $1bn in tradable ARR on the platform.
Raptor Group founder and CEO Jim Pallotta said, “Having spent my career working in the capital markets, I instantly saw how impactful Pipe’s platform would be as a new mechanism for helping companies to grow.
“Pipe represents a significant innovation in the alternative financing space and is transforming how companies access growth capital.”
With the close of the round, the FinTech has raised a total of $66m in funding.
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