Recurring revenue trading platform Pipe raises whopping $250M

Pipe, a Miami-based company that lets companies sell their recurring revenue streams on its platform, raised $250M, bringing its valuation to $2B a year after its launch.

Why would we care?
Pipe, which was launched last year, was initially focused on software-as-a-service (SaaS) companies, allowing them to access full annual value of their subscriptions upfront through its platform. The company eventually began to offer non-dilutive capital to non-SaaS companies. The offering, according to the company, has experienced “massive adoption” with tradable annual recurring revenue of more than $1B. More than 4,000 companies have joined since its public launch in June 2020. The company plans to use the funding to expand across every recurring revenue area, including property management companies, direct-to-consumer subscriptions, telecommunications, sports and entertainment, biotech, healthcare, and venture capital fund management fees. “Any business with very predictable revenue streams is ripe for trading on our platform,” Harry Hurst, the company’s co-founder and co-CEO, said in an interview. “We have unlocked the largest untapped asset class in the world.” Hurst tweeted that Pipe became “the fastest fintech in history” to reach a valuation of $2B.