The answer, of course, is on the order of “a lot,” but the barriers to reaching this world remain formidable. How many startups could be built if hundreds of thousands or even millions more people could code and bring their entrepreneurial ideas to fruition? How many bureaucratic processes could be eliminated if developers were more latent in every business? “This speaks to why we managed to raise at such a high valuation and attract so much investor interest.Among Silicon Valley circles, a fun parlor game is to ask to what extent world GDP levels are held back by a lack of computer science and technical training. “Growth has been insane,” Hurst told TechCrunch. When I last talked to the company in March, it had reported tens of millions of dollars traded in all of the first quarter. Tradable annual recurring revenue (ARR) on the Pipe platform is in excess of $1 billion and trending toward $2 billion, with tens of millions of dollars currently being traded every month. More than 4,000 companies have signed up on the Pipe trading platform since its public launch in June 2020, with just over 1,000 of those signing up since its March raise, according to Hurst. The goal of the platform is to offer companies with recurring revenue streams access to capital so they don’t dilute their ownership by accepting external capital or get forced to take out loans. (Pipe describes its buy-side participants as “a vetted group of financial institutions and banks.”) Hurst, Josh Mangel and Zain Allarakhia founded Pipe in September 2019 with the mission of giving SaaS companies a way to get their revenue upfront, by pairing them with investors on a marketplace that pays a discounted rate for the annual value of those contracts. The new funding was raised at “a significant step up in valuation” from the company’s last raise. With this latest round, Pipe has now raised about $316 million in total capital. ![]() The investment comes about 2 ½ months after Pipe raised $50 million in “strategic equity funding” from a slew of high-profile investors such as Siemens’ Next47 and Jim Pallotta’s Raptor Group, Shopify, Slack, HubSpot, Okta and Social Capital’s Chamath Palihapitiya. Existing backers such as Next47, Marc Benioff, Alexis Ohanian’s Seven Seven Six, MaC Ventures and Republic also put money in the latest financing. “We had originally allocated $150 million for the round, but capped it at $250 million although we could have raised significantly more,” he told TechCrunch.Īs we previously reported, Baltimore, Maryland-based Greenspring Associates led the round, which included participation from new investors Morgan Stanley’s Counterpoint Global, CreditEase FinTech Investment Fund, Fin VC, 3L and Japan’s SBI Investment. Well, that deal has closed and in the end, Miami-based Pipe confirms that it has actually raised $250 million at a $2 billion valuation in a round that was “massively oversubscribed,” according to co-founder and co-CEO Harry Hurst. ![]() ![]() At the end of March, TechCrunch reported that buzzy startup Pipe - which aims to be the “Nasdaq for revenue” - had raised $150 million in a round of funding that values the fintech at $2 billion.
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