At a Glance
Fairly new to the fintech market, Pipe is a start-up platform that aims to maximize a company’s financial growth. However, their valuation statistics tell an altogether different story.
Over the past year, Pipe has managed to put together funding in excess of $2 billion. It is worth noting that their most recent funding itself was valued at that well-rounded figure of $2 billion!
However, before any further details, it is worth asking what exactly the aim of this prestigious startup is and what it plans to achieve.
Well, to put it simply, Pipe is every start-up SaaS’s (Software as a service solution) to generate revenue and optimize their financial growth without diluting the company’s original ownership by trading its equity for investor funding. How is this achieved?
The founders of Pipe say that this can be achieved by offering discounts on a particular SaaS’s annual subscription contract to willing investors on their platform, which would ultimately ensure that these companies receive revenue instantly without having to dilute their ownership in equity.
Now, even though one of Pipe’s Founders and one of the CEOs, Mr. Harry Hurst, had, at the time of this platform’s launch, declared that Pipe was started with the intention of helping SaaS enterprises to generate growth funding and financing, he has gone further to state that it was an imminent prospect of the start-up to bring a variety of businesses such as Direct-to- Consumer (D2C) companies, Internet Service Providers, Tele-com companies and so on, within the ambit of this platform.
In an interview with TechCrunch, Mr. Hurst revealed the reason for this expansion of the scope of the platform to be that ever since their entry into the market, with their focus solely on SaaS companies, over 3000 enterprises had availed their services. He went on to say, “Those companies range from early-stage and bootstrapped with $200,000 in revenue to publicly traded companies.”
The reason there is such faith invested in Pipe’s rapid growth is their mere statistics. With bigshots of the fintech industry such as Jon Runyan, the General Counsel for Okta, an Identity and Access Management enterprise based out of San Fransisco, declaring Pipe’s approach to be one-of-its-kind in dealing with issues of payment term v. cash flow (in an interview with Forbes), Pipe’s merit can be gauged on the basis of absolute raw numbers. Following the platform’s launch in June of 2020, over tens of millions of USD worth of trades had been rostered on the platform. 2021 promises better figures, with the first quarter itself recording over tens of millions of USD worth of trades, with an entire year remaining to bring a substantial increase to that number. In fact, as it stands at this moment, Pipe boasts of a tradable Annual Recurring Revenue exceeding $1 billion on the platform.
The boom in Pipe’s financial growth is a surety as of now. The only question that remains is that of when it can expect to achieve this financial growth.