Pipe Technologies, Inc. announced it raised $60 million in equity and asset financing as an extension to its Seed round to support the growth of its pioneering SaaS financing platform. Pipe’s subscription financing platform transforms the fundamental economics of the global SaaS industry by enabling SaaS companies to obtain instant liquidity on their subscription contracts as an alternative to costly and dilutive equity financing. Concurrent with the $60 million in financing, Pipe announced the appointment of Michal Cieplinski as Chief Operating Officer and Chief Legal Officer.
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Since launching its SaaS financing platform in February 2020, Pipe has seen overwhelming demand from early and growth-stage SaaS companies. The desire to fund growth based on the value of monthly and quarterly recurring revenue assets, rather than raising ever greater amounts of dilutive equity capital or venture debt, has never been stronger. 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.
Industry’s First Subscription Financing Platform
Today, Pipe officially unveiled its subscription financing platform, the most cost-efficient way for SaaS companies to access capital. By treating subscriptions as a new asset class, Pipe creates an opportunity for cloud and SaaS software companies to convert their monthly or quarterly subscriptions to their full annual value in cash, up-front. On the other side of the platform, Pipe’s investor partners, a vetted group of financial institutions and banks, get access to alternative investments in the form of highly predictable, recurring revenue-generating assets, much like fixed-income products. Pipe’s platform creates a market between the two sides and handles all of the servicing, giving SaaS companies instant access to capital at the most competitive market-clearing price. Most importantly, Pipe integrates deeply with the SaaS companies’ own ERP and subscription management software, allowing them to finance their subscription assets seamlessly and instantly.
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