New financing accelerates company’s expansion globally and into new customer segments
Pipe, creators of the world’s first trading platform for recurring revenues, today announced it has raised $250 million in strategic equity funding. The company is now valued at $2 billion in just under a year since its public launch, making it the fastest fintech to reach this valuation in history.
The round was led by Greenspring Associates, and included new investors Counterpoint Global (Morgan Stanley), CreditEase FinTech Investment Fund, SBI Investment, 3L, Sound Ventures and Guy Oseary, with participation from existing investors such as Fin VC, Next47, Marc Benioff’s TIME Ventures, Alexis Ohanian’s Seven Seven Six, MaC Ventures, Republic, and more.
Pipe’s trading platform has seen rapid adoption beyond their initial launch vertical of SaaS to all companies with recurring revenue streams looking to fund their growth without debt or dilution.
“By fundamentally changing the way entrepreneurs and organizations raise capital to fund their growth, Pipe has quickly emerged as one of the most important financial technology companies in the world,” said Ashton Newhall, Managing General Partner, Greenspring Associates. “Our investment will further Pipe’s mission to put companies in the driver’s seat of their growth.”
Originally allocated for $150 million, the round was oversubscribed by $100 million.
Pipe, coined the NASDAQ for revenue, will be using the newest round of financing to bolster its platform globally, while also continuing to expand its offering across every recurring revenue vertical including property management companies, direct to consumer subscription (physical products), telecommunications, sports and entertainment, biotech, healthcare, and VC fund management fees.
By offering a non-dilutive, debt-free way for any company with recurring revenue to grow, Pipe has unlocked the largest untapped asset class in the world, revenue.
“Pipe has revolutionized the way many companies think about capitalization and for us they have been a trusted partner to help us exponentially grow our business. Their partnership has given us the ability to instantly provide customers flexible payment terms without the compounding risks to cash; and rapidly opened a largely untapped customer base. Pipe has been a pivotal force in our 5x monthly revenue growth journey,” said Sachin Dev Duggal, CEO of Builder.ai.
Over 4,000 companies have signed up on the Pipe trading platform since its public launch in June 2020, and over 25% of the companies on the platform operate in non-SaaS verticals. Tradable annual recurring revenue (ARR) on the Pipe platform is in excess of $1 billion and trending toward $2 billion, with tens of millions of dollars being traded every month.
“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,” said Harry Hurst, co-founder and co-CEO, Pipe. “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.”