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Miami-Based Fintech Company Pipe Raised $250M Funding, At A Valuation Of $2 Billion

In a recent investment round, Pipe, a prominent provider of financial technology, raised $250 million at a valuation of $2 billion. In a story from the end of March, it was stated that Pipe, a highly awaited startup that intends to be the “Nasdaq for revenue,” had raised $150 million in a round of investment, valuing the fintech company at $2 billion.

Since Pipe had already become the “Nasdaq for revenue,” this was a significant factor in the company’s valuation. 

Pipe 250m series 2bazevedotechcrunch

In a story from the end of March, it was stated that Pipe, a highly awaited startup that intends to be the “Nasdaq for revenue,” had raised $150 million in a round of investment, valuing the fintech company at $2 billion. Since Pipe had already become the “Nasdaq for revenue,” this was a significant factor in the company’s valuation. The news was first reported by TechCrunch.

With its headquarters in Miami, Pipe has announced that it has raised $250 million at a valuation of $2 billion in a round that was “massively oversubscribed.” In this regard, Harry Hurst, co-founder, and co-CEO have spoken up. In this case, the citation is required The round was considered “massively oversubscribed” because of the deal’s completion as per azevedotechcrunch.

He told, “We had previously targeted $150 million for the round, but we capped it at $250 million.” We put a limit of $250,000,000 on it. Despite the fact that they could have made a lot more money, they chose not to.

Baltimore-based venture capital firm Greenspring Associates reportedly led the funding round. They were joined by new investors including the CreditEase FinTech Investment Fund, Fin VC, 3L, and SBI Investment of Japan, among others.

Next47, Marc Benioff, Alexis Ohanian’s Seven Seven Six, MaC Ventures, and Republic are just some of the investors who participated in the company’s most recent investment round.

The investment comes about two and a half months and a half after the company raised $50 million in “strategic equity fundraising” from a number of well-known investors such as Siemens’ Next47 and Jim Pallotta’s Raptor Group, Shopify, Slack, HubSpot, Okta, and Chamath Palihapitiya from Social Capital.

The pipe has raised more than $316 million over a series of funding rounds. “a big increase in valuation” is what the increased investment total means when compared to the previous round of funding.

Ever since I first wrote about Pipe in late February 2020, right after the company secured its initial round of $6 million in funding, it has been incredible to see how far the company has come. The pipe is a startup with the mission of improving human interaction through the development of practical software. 

Pipe, which went public in June of 2016, claims to be the most rapidly valued fintech business in history. Pipe was first shown to the public in June of the previous year. Pipe was made available to the general public in June 2017. Even if I can’t back up that assertion with data, I can still say that its growth has been stunning and rapid.

What Do You Mean By Pipe?

Pipe was established in September 2019 by Hurst, Josh Mangel, and Zain Allarakhia to facilitate the prepayment of SaaS enterprises. Pipe accomplishes this by facilitating a discount on annual contract value between SaaS providers and investors on a centralized platform. Banks and other vetted financial institutions make up Pipe’s “buy-side participants.”

The long-term purpose of the platform is to render loans and equity reduction unnecessary for businesses with regular revenue streams.

Pipe 250m Series

Hurst claims that since its release to the public in June 2020, the Pipe trade platform has attracted more than 4,000 businesses. A little more than a thousand of these businesses have joined the site since it launched in March. The amount of ARR that may be traded on the Pipe platform has surpassed $1 billion and is quickly approaching $2 billion.

Monthly, the platform facilitates the transfer of several tens of millions of dollars. We spoke back in March, and I recall you telling me that the company’s first-quarter transactions totaled tens of millions of dollars.

TechCrunch reports that Hurst said, “Growth has been tremendous.” This helps shed light on why we were able to attract so many investors and garner such a high valuation when raising capital.

Over time, Pipe’s platform has expanded to offer non-dilutive capital to entrepreneurs outside of the SaaS industry as well. In fact, Hurst claims that 25% of the company’s current customers are not SaaS and that number will climb to over 50% by the end of the year.

According to Hurst, Pipe’s platform is currently being used by a diverse range of businesses, from property management companies to D2C subscription service providers to insurance agencies to online pharmacies to even sports and entertainment organizations. It is also used by investment banks.

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