Viva La Revolución!
Pipe Raises $50M from an incredible syndicate including Benioff, Shopify, Chamath, Lonsdale, and other leading technology innovators
Almost exactly a year ago to the day Fin VC first met with the founding team at Pipe. The company had a vision to build a trading platform that made it easy for companies to unlock their recurring revenue streams and sell them to capital markets. We knew immediately that what Pipe had begun building represented a once in a generation opportunity to introduce an entirely new, incredibly valuable, massive asset class that would have significant benefits for companies and capital investors around the world.
Despite all the uncertainty at the time around Covid, we had enormous conviction in the business, technology, and most importantly in the ability of the Pipe leadership team to execute. We moved quickly to lead a Seed+ round (it was and remains our fastest investment process) and immediately started leveraging our entire network to support the company. We detailed our thinking on our initial investment in a post “Why we invested in Pipe”
Today we are excited to share that Pipe has achieved a major milestone with the announcement of a strategic financing round with leading global companies including Shopify, Slack, Hubspot, Okta, Siemens Next47, and Raptor Group. Also joining the round are some of the most visionary global technology innovators and investors, including Marc Benioff, Michael Dell, Chamath Palihapitiya, Alexis Ohanian, and Joe Lonsdale.
This funding further cements Pipe’s role as one of the fastest growing and most transformative companies in FinTech, supported by an incredible network of investors and partners, and pursuing one of the largest market opportunities in the world.
Pipe has created an entirely new asset class that transforms recurring revenue streams into non-dilutive upfront capital that companies can use to fund growth. The company’s trading platform provides capital market investors with direct access to invest in recurring revenue contracts from companies of all sizes, ranging from early stage startups to publicly traded entities (yes, there are public companies already using Pipe!).
As they continue to accelerate into this massive opportunity, Pipe has built a two-sided trading platform that represents a significant innovation in the alternative financing space. On one side, each company is evaluated on their own merits in order to access the best possible pricing for their recurring revenue contracts based on their operating fundamentals and risk profile. The better their growth and performance, the more their assets will trade for on the Pipe platform. The other side of the platform consists of institutional investors, representing billions in investment capital, all bidding to purchase these recurring revenue-generating assets which represent a new and arguably superior alternative to existing fixed-income products.
We would like to extend a huge congratulations to the entire team at Pipe, whose execution in building this business has been exemplary. And while their achievements to date are incredible, we have full confidence that Pipe is only just getting started! We are looking forward to rolling up our sleeves and working closely with the Pipe management team to help them expand the business globally over the coming years.