Pipe, a U.S.-based recurring revenue trading platform, announced on Wednesday it secured $250 million through its latest strategic investment round, which 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, and Republic. The company reported its valuation is now at $2 billion, just under a year after its public launch. Pipe announced it raised $50 million in March 2021.
As previously reported, Pipe stated it gives SaaS companies access to the full annual value of their subscriptions, upfront. Since launching its SaaS financing platform in February 2020, Pipe claims it has seen overwhelming demand from early and growth-stage SaaS companies. The company reported:
“Larger SaaS companies also leverage Pipe to offer more flexible monthly or quarterly payment terms to customers that were previously forced to be annual pre-paid, an attractive and increasingly necessary alternative as businesses nationwide face economic instability.”
Pipe was reportedly launched in beta in February 2020 as a trading platform focused on SaaS companies. However, since its public launch in June 2020, Pipe noted it has experienced massive adoption across companies with recurring revenues in many verticals. The company’s latest milestones include:
- Tradable ARR on the platform is already in excess of $1 billion, a testament to the rapid acceptance of the new recurring revenue asset class
- Tens of millions of dollars have been traded on the platform in Q1 of 2021 alone
- Over 4,000 companies have signed up for the Pipe trading platform including SaaS, streaming services, telco, and direct-to-consumer subscription businesses
Speaking about the company’s growth and development Harry Hurst, Co-Founder and Co-CEO of Pipe, stated:
“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.”
Pipe went on to add that it will be using the investment round’s funds to support its platform globally, while also continuing to expand its offering across every recurring revenue vertical, which includes property management companies, direct to consumer subscription (physical products), telecommunications, sports and entertainment, biotech, healthcare, and VC fund management fees.