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Pipe hits $2 billion valuation within a year of launch

Pipe hits $2 billion valuation within a year of launch

Pipe, a Miami-based fintech startup building an exchange for recurring revenue streams, has raised $250 million in a funding round that gives it a $2 billion valuation within a year of launching.

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.

The latest round comes just two months after the startup raised $50 million in equity financing.

Pipe was launched in beta in February 2020 as a trading platform focused on SaaS companies who could convert their monthly or quarterly subscriptions to their full annual value in cash, up-front. However, since its public launch in June 2020, Pipe has experienced massive adoption across companies with recurring revenues in many verticals.

Over 4,000 companies have signed up on the Pipe trading platform since its public launch, and over 25% of the companies on the platform operate in non-SaaS verticals. Tradable annual recurring revenue is in excess of $1 billion and trending toward $2 billion, with tens of millions of dollars being traded every month.

“By fundamentally changing the way entrepreneurs and organisations raise capital to fund their growth, Pipe has quickly emerged as one of the most important financial technology companies in the world,” says 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 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.

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 21 May, 2021, 13:56Be the first to give this comment the thumbs up 0 likes

Sounds like good ole Factoring / Accounts Receivables financing. Amazing how a noob becomes a unicorn just as a former unicorn in the same field goes bust (Greensill).