Total amount raised
$423.1 Millions
Latest funding date
Location
Title
Pipe has successfully raised significant funding through multiple rounds, positioning itself as a key player in the financial technology sector. The platform offers innovative solutions for trading recurring revenue streams, providing businesses with immediate access to capital.
Keep reading to explore the intricacies of Pipe's fundraising journey and the investors backing this transformative platform.
What Is Pipe?
Founded on August 1, 2019, Pipe is a global trading platform for recurring revenue streams based in San Francisco, California. The company was established by Harry Hurst, Josh Mangel, Michal Cieplinski, and Zain Allarakhia.
Pipe allows companies to trade their recurring revenue streams with institutional investors in real-time, providing immediate access to capital. This innovative approach makes recurring revenue streams tradable for their annual value, offering more cash flow for scaling companies.
With a team of 251-500 employees, Pipe continues to revolutionize the financial technology sector by integrating financial tools within software platforms to enhance customer experience and business growth.
How Much Funding Has Pipe Raised?
- Seed Round
- Amount Raised: $6M
- Date: February 2020
- Lead Investors: Craft Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To launch the platform and attract initial users.
- Seed Round
- Amount Raised: $10M
- Date: June 2020
- Lead Investors: Fin Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the platform's capabilities and user base.
- Seed Round
- Amount Raised: Not publicly disclosed
- Date: January 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support early-stage growth and development.
- Venture Round
- Amount Raised: $50M
- Date: March 2021
- Lead Investors: Next47, Raptor Group
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance platform features.
- Venture Round
- Amount Raised: $250M
- Date: May 2021
- Lead Investors: Greenspring Associates
- Valuation at Round: $2B
- Motivation Behind the Round: To support global expansion and enter new industry verticals.
- Series B
- Amount Raised: Not publicly disclosed
- Date: June 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further scale the business and enhance market presence.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: November 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue expanding the platform's reach and capabilities.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: July 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing growth and development initiatives.
- Debt Financing
- Amount Raised: $7.1M
- Date: September 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To secure additional capital for operational needs.
- Debt Financing
- Amount Raised: $100M
- Date: June 2024
- Lead Investors: Victory Park Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand the platform and enhance financial stability.
Total Amount Raised: $423.1M. Current Valuation: $2B.
Key Investors
- Victory Park Capital
- Details: Victory Park Capital is a private equity firm that provides debt and equity financing to middle-market companies across various industries. They are known for their flexible investment approach and deep industry expertise.
- Investment Focus Areas: Middle-market companies, various industries.
- Notable Investments: Not publicly disclosed.
- Greenspring Associates
- Details: Greenspring Associates is a venture capital firm that led Pipe's $250 million equity round. They focus on high-growth companies and have a strong track record in the venture capital space.
- Investment Focus Areas: Venture capital, growth equity, secondary investments.
- Notable Investments: Various technology and growth-stage companies.
- Next47
- Details: Next47 is a global venture firm backed by Siemens, focusing on technology and industrial innovation. They have been an existing investor in Pipe, participating in multiple funding rounds.
- Investment Focus Areas: Technology, industrial innovation.
- Notable Investments: Formlabs, Markforged.
- Fin VC
- Details: Fin VC is a venture capital firm specializing in fintech and enterprise software investments. They participated as a new investor in Pipe's $250 million round.
- Investment Focus Areas: Fintech, enterprise software.
- Notable Investments: Various fintech startups.
- Marc Benioff’s TIME Ventures
- Details: TIME Ventures, led by Salesforce CEO Marc Benioff, focuses on technology and social impact investments. They have been an existing investor in Pipe.
- Investment Focus Areas: Technology, social impact.
- Notable Investments: SpaceX, Planet Labs.
What's Next for Pipe?
Pipe's future is brimming with opportunities as it expands into various recurring revenue verticals such as property management, direct-to-consumer subscriptions, and telecommunications. With tradable Annual Recurring Revenue (ARR) already exceeding $1 billion and tens of millions of dollars traded on the platform in Q1 of 2021 alone, the potential for growth is immense. The company is also exploring securitization, which could open new financial markets and further solidify its position as a leader in fintech.
Given its rapid growth and high valuation, future fundraising rounds seem likely to support global expansion and entry into new verticals. However, challenges such as economic instability, competition from other fintech platforms, and the need for continuous innovation could pose hurdles. As Pipe navigates these challenges, its ability to adapt and innovate will be crucial for sustaining its growth trajectory.
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