Pipe, creators of trading platform for recurring revenues, has raised $50 million in strategic equity funding, with a minority portion of the round being allocated to secondary.
Led by Jim Pallotta’s Raptor Group and Siemens Next47, participants in Pipe’s latest round of funding also include Shopify, Slack, HubSpot, Okta, Chamath Palihapitiya, Marc Benioff, Michael Dell’s MSD Capital, Republic, Alexis Ohanian and Joe Lonsdale.
The latest round of funding, which brings the total equity raised to $66 million, will be used to expand Pipe’s global footprint and build upon the company’s partnerships, including with its newest investors.
“Having spent my career working in the capital markets, I instantly saw how impactful Pipe’s platform would be as a new mechanism for helping companies to grow,” said Jim Pallotta, Founder and CEO of Raptor Group. “Pipe represents a significant innovation in the alternative financing space and is transforming how companies access growth capital.”
“Pipe is revolutionizing how companies access capital by empowering them to trade their most valuable asset: their underlying contracts,” said Matthew Cowan, General Partner at Next47. “As an active investor in the recurring revenue space, we are incredibly impressed with how the Pipe platform changes the game for growing businesses by giving them dynamic access to lower cost of capital.”
Pipe has created an asset class that transforms recurring revenue streams into non-dilutive upfront capital for growth. Through its trading platform, Pipe provides direct access to the capital markets for companies of all sizes, ranging from early stage all the way to publicly listed companies. Pipe works with companies that want to access their booked revenue up front by turning their quarterly or monthly recurring revenue (MRR) into annual recurring revenue (ARR) cash flow, without debt or dilution.
“Pipe is levelling the playing field for companies in the capital markets,” said Chamath Palihapitiya, Founder & CEO, Social Capital. “By taking the underlying contracts that generate recurring revenue streams and making them tradable for the first time, Pipe has unlocked a multi-trillion dollar asset class, revenue.”
“When we were approached by such incredible companies with aligned missions to form partnerships, the conversations quickly evolved,” said Harry Hurst, co-founder and co-CEO, Pipe. “We felt it made sense to have the broader ecosystem that powers growth oriented companies join forces to invest together in the future of revenue as a tradable asset class.”
Pipe was launched in beta in February 2020 as a trading platform focused on SaaS companies.
Arya has been a part of the Content & Research Team at Hrnxt.com. She is a keen observer of economic developments, emerging businesses, people in business and keeps a tab on latest happenings in the business environment.