Trading platform for recurring revenue streams Pipe brought in an oversubscribed $250m strategic equity fund investment to value the company at $2bn.
The round was led by Greenspring Associates with new investors Counterpoint Global, Morgan Stanley, CreditEase FinTech Investment Fund, SBI Investment, 3L, Sound Ventures and Guy Oseary. It also saw participation from existing investors such as Fin VC, Next47, Marc Benioff’s TIME Ventures, Alexis Ohanian’s Seven Seven Six, MaC Ventures and Republic.
The new investment brings Pipe’s total raise to $316m since the Miami-based company was launched by Harry Hurst, Josh Mangel and Zain Allarakhia in 2019. Of the total, $300m was raised in 2021 alone.
The investment comes a few months after Pipe raised $50m in strategic equity funding from a slew of high-profile investors such as Siemens’ Next47 and Jim Pallotta’s Raptor Group, Shopify, Slack, HubSpot, Okta and Social Capital’s Chamath Palihapitiya.
The company intends to use the fresh funds to bolster its platform globally, expand its offering across every recurring revenue vertical including property management companies, direct to consumer subscription, telecommunications, sports and entertainment, biotech, healthcare and VC fund management fees.
Dubbed the “NASDAQ for revenue,” Pipe is a trading platform that enables entrepreneurs to grow their businesses on their terms. By treating recurring revenue streams as an asset, the platform allows companies to transform their recurring revenue into upfront capital, instantly.
Pipe’s software-as-a-service platform launched in February 2020. Over 4,000 companies have signed up on the platform since its public launch in June 2020 and over 25% of the companies on the platform operate in non-SaaS verticals.
Commenting on the round, Hurst said, “At Pipe, we’ve built the world’s first trading platform for recurring revenue to help accelerate growth for entrepreneurs without the burden of debt or dilution. Pipe has become a mission-critical part of our customers’ growth over the last year and this strategic financing further cements our position as the first and only trading platform for revenue as we build over the coming decades.”
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