Pipe

Founded in 2019, Pipe has pioneered a new approach to business financing by creating the world's first trading platform for recurring revenue. Unlike traditional financing methods that force growing companies to choose between dilutive equity funding or restrictive debt financing, Pipe has created an innovative third option: allowing businesses to transform their predictable recurring revenue streams into tradable assets. This approach enables subscription-based businesses, SaaS companies, D2C subscription businesses, service businesses with recurring revenue, and similar enterprises to access capital at a fraction of the cost of equity, without taking on debt or giving up board seats and ownership. By creating this new asset class, Pipe has fundamentally changed how companies with recurring revenue can finance their growth.

What distinguishes Pipe in the alternative financing landscape is their marketplace approach that connects businesses directly with institutional investors who competitively bid to purchase discounted annual value of these recurring revenue streams. Unlike traditional financing models that focus heavily on credit scores, time in business, or company valuations, Pipe's algorithm evaluates businesses primarily based on the quality and reliability of their recurring revenue. Their technology platform analyzes customer churn rates, payment frequency, customer concentration, and other key subscription metrics to determine a company's "tradable" recurring revenue. This data-driven approach offers an objective valuation method that can benefit businesses at various stages, from early-stage startups to established companies, by providing them with instant access to capital based on the strength of their business model rather than traditional financing criteria.

Pipe's platform serves businesses with monthly or quarterly recurring revenue starting at around $10,000 per month, though they're most effective for companies with $25,000+ in monthly recurring revenue. The trading process is remarkably efficient, with approval decisions typically provided within 2-5 days after connecting the company's financial and billing systems to Pipe's platform for analysis. Once approved, businesses can begin trading their recurring revenue immediately, with funds often available within the same day a trade is executed. The flexibility of their platform allows companies to trade as much or as little of their recurring revenue as needed, when needed, without having to renegotiate terms for each funding round. For subscription-based businesses looking to accelerate growth without sacrificing equity or taking on debt, Pipe offers a compelling alternative that treats recurring revenue as a valuable, tradable asset.