- Pipe Raises US$ 50 million to become the Nasdaq of revenue.
- Pipe aims to help SaaS companies scale up via their platform.
- The pipe was launched in June 2020, after founding it in September 2019.
Pipe Raises managed to raise a seed funding of US$ six million from Craft Ventures. The funding was meant to help the tech company to continue with its mission to assist SaaS companies in getting alternate funding other than equity and venture debit.
Barely a year ago, The seed funding of US$ six million was a shot in the arm for Pipe providing SaaS companies a way out in associating with investors and procuring discounted funding.
Raised another US$ 10 million in funding
Pipe raised another US$ 10 million shortly after the initial seed funding as an extension of the former round.
Now, the Miami-based company, Pipe announced a new round of funding amounting to US$ 50 million. This strategic equity funding was backed by a bevy of top-notch investors like Siemens’ Next47 and Jim Pallotta’s Raptor Group.
Other investors who participated in this round of funding included Shopify, HubSpot, Slack, Social Capital’s Chamath Palihapitiya, Okta, Marc Benioff, Republic, Michael Dell’s MSD Capital, Alexis Ohanian’s Seven Seven Six and Joe Lonsdale.
Pipe used the majority of the raised funds in buying primary equity, while a minuscule of the round has been used in purchasing buying secondary equity. It means that a small amount was utilized in buying shares of existing stakeholders like the executives and employees.
Co-founder and C0-CEO of Pipe, Harry Hurst said that this funding should not be confined to any funding stage. He said that the company doesn’t like to play the ‘alphabet game’. “This wasn’t about the money. We had five or six years of runway going into this round.
The company said that apart from the funding, it is also putting its effort into widening the scope of its offering beyond primarily SaaS companies. The pipe is keen on associating with companies that have a very good revenue stream, which is reoccurring. They are interested in D2C subscription firms, ISP, telecommunication companies, streaming services, etc. Hurst said that even VC fund admin and management are incorporated on its platform.
When Pipe ventured into the market, it was mainly focused on SaaS companies, which is also incidentally their first vertical. But, now more than 3,000 companies have signed up to use their platform, with a diverse range——bootstrapped, early-stage companies, and publicly traded ones.
After founding the company by Hurst, Josh Mangel, and Zain Allarakhia in September 2019, Pipe was launched in June 2020, and till that year’s end, the company witnessed so many trades taking place through its platform. So, by the first quarter of 2021, millions of dollars got transacted across the Pipe platform.
The tradable ARR on the platform at present is over US$ 1 billion. Meanwhile, the company is capitalizing on its new capital and partnerships to take the platform to the world stage.
“When we talk about global expansion, we’re talking about multi-currency support. And, teams on the ground in local markets. Technically we’ve served a global audience from day one,” said Hurst.
The pipe is aiding companies to grow on their own terms. The company heads would also like to say that it is ‘building the Nasdaq for revenue’. The company is tapping into the statute that each company in the world comes with a recurring revenue model already, and those who don’t have, are thinking about how they can shift to it.