And One of the Largest Small Business Funders is… Pipe?
It’s not a loan, Pipe says. Instead businesses can sell their future recurring revenue to investors on a trading platform for cash upfront today. Led by CEO Harry Hurst, the former founder of a rental car delivery service, Pipe has provided an astounding $1.2B worth of capital to businesses this year, putting them on pace to become one of the largest small business finance companies nationwide.
The company claims to have made recurring revenue into an asset class while making Miami their home base, much to the joy of the city’s tech-friendly mayor.
I am so grateful for everyone participating and joining forces to make Miami a global hub for innovation.
This is just one of many! @harryhurst @m_cieplinski @pipe
Read more: https://t.co/OtxrRad0yq
— Mayor Francis Suarez (@FrancisSuarez) December 22, 2020
Pipe considers itself to be the “Nasdaq for revenue” and calls its employees “plumbers” instead of sales agents, underwriters, and engineers.
People wonder how big @pipe is.
In our first full year of trading we’ve provided access to over $1.2B in financing to companies of all shapes and sizes, from bootstrappers to public co’s – all on their terms.
Proud of our team of 76 plumbers is an understatement.
Bring on ‘22!
— Harry Hurst (@harryhurst) December 21, 2021
Pipe has already raised $300 million of equity financing in the last year from investors including Shopify, Slack, Okta, HubSpot, Next47, Marc Benioff’s TIME Ventures, Alexis Ohanian’s Seven Seven Six, Chamath Palihapitiya, MaC Ventures, Fin VC, Greenspring Associates, Counterpoint Global (Morgan Stanley) and more at a valuation of over $2 billion.
“Pipe is levelling the playing field for companies in the capital markets,” said Chamath Palihapitiya, Founder & CEO, Social Capital, to finledger. “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.”Last modified: December 22, 2021