Pipe, a U.S.-based SaaS company, announced on Thursday it has raised $50 million through its latest investment round, which was led by Raptor Group and Siemens Next47 with participation from Shopify, Slack, HubSpot, Okta, Chamath Palihapitiya, Marc Benioff, Michael Dell’s MSD Capital, Republic, Alexis Ohanian and Joe Lonsdale. The latest investment round comes less than a year after Pipe secured $60 million through its seed funding round.
As previously reported, Pipe stated it gives SaaS companies access to the full annual value of their subscriptions, upfront. Since launching its SaaS financing platform in February 2020, Pipe claims it has seen overwhelming demand from early and growth-stage SaaS companies. The company reported:
“Larger SaaS companies also leverage Pipe to offer more flexible monthly or quarterly payment terms to customers that were previously forced to be annual pre-paid, an attractive and increasingly necessary alternative as businesses nationwide face economic instability.”
Pipe was launched in beta in February 2020 as a trading platform focused on SaaS companies. However, since its public launch in June 2020, Pipe has experienced massive adoption across companies with recurring revenues in many verticals. The company’s latest milestones include:
- Tradable ARR on the platform is already in excess of $1 billion, a testament to the rapid acceptance of the new recurring revenue asset class
- Tens of millions of dollars have been traded on the platform so far in Q1 of 2021 alone
- Over 3,000 companies have signed up for the Pipe trading platform including SaaS, streaming services, telco, and direct-to-consumer subscription businesses
Speaking about the platform, Harry Hurst, Co-Founder and Co-CEO of Pipe, stated:
“When we were approached by such incredible companies with aligned missions to form partnerships, the conversations quickly evolved. 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 added that the latest investment round’s funds will be used to expand its global footprint and build upon its partnerships, including with its newest investors.