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Company: Pipe, Miami, FL
Nomination Submitted by: Freund PR
Company Description: Pipe created a new asset class that transforms recurring revenue streams into non-dilutive upfront capital for growth.Through its trading platform Pipe provides direct access to the capital markets for companies of all sizes, ranging from early-stage all the way to publicly listed companies.Pipe gives companies access to the capital needed to grow by turning their recurring revenue into capital.
Nomination Category: New Product & Service Categories - Business Technology
Nomination Sub Category: FinTech Solution
 Nomination Title: Pipe Trading Platform
- Which will you submit for your nomination in this category, a video of up to five (5) minutes in length about the nominated new or new-version product or service, OR written answers to the questions for this category? (Choose one):
Written answers to the questions
- If you are submitting a video of up to five (5) minutes in length, provide the URL of the nominated video here, OR attach it to your entry via the "Add Attachments, Videos, or Links to This Entry" link above, through which you may also upload a copy of your video.
Written answers to questions below.
- If you are providing written answers for your submission, you must provide an answer to this first question: If this is a brand-new product, state the date on which it was released. If this is a new version of an existing product, state the date on which the update was released:
Product Launch Date: June 2020
In February 2020 Pipe launched in beta and publicly launched in June 2020. In 2021, Pipe raised $300 million in funding from some of the biggest technology innovators and investors including Shopify, Slack, Hubspot, Okta, Chamath Palihapitiya, Michael Dell, and Marc Benioff. Pipe reached a $2 billion valuation less than a year after their public launch, the fastest of any fintech company in history.
- If you are providing written answers for your submission, you must provide an answer to this second question: Describe the features, functions, and benefits of the nominated product or service (up to 350 words):
Total 209 words used.
Pipe has created the world's first trading platform for recurring revenue, enabling entrepreneurs to grow their businesses on their terms. Pipe gives companies access to the capital they need to grow by turning their recurring revenue into up-front capital instantly without restrictive debt or dilution.
By treating recurring revenue streams as a new asset class, and making them tradable on a two-sided platform, Pipe enables businesses to finance their growth without reliance on loans or venture capital. This recognition of the changing financial landscape makes funding accessible to a wider range of diverse business owners.
On the sell-side, companies securely connect their accounting, banking, and billing systems. Pipe’s algorithm analyzes their revenue and financial health in real-time to provide the best possible bid price based on their level of risk. This allows founders to access capital at the lowest cost without taking on restrictive loans or diluting their ownership.
The buy-side of the platform is made up of institutional investors all eager to purchase these recurring revenue-generating assets, which generate similar returns to fixed-income products.
In the initial launch, the platform served SaaS companies, but now over 50% of the traded volume on the platform comes from non-SaaS verticals including D2C, real estate, telecom, insurance, healthcare, and service businesses.
- If you are providing written answers for your submission, you must provide an answer to this third question: Outline the market performance, critical reception, and customer satisfaction with the product or service to date. State monetary or unit sales figures to date, if possible, and how they compare to expectations or past performance. Provide links to laudatory product or service reviews. Include some customer testimonials, if applicable (up to 350 words):
Total 320 words used.
Pipe’s trading platform is a very unique experience in contrast to traditional financing. It’s been very well received by both investors and customers (we call them vendors). Here’s a bit of what our vendors have to say about Piping their recurring revenue streams:
Pipe helped Haus fund the first online D2C liquor brand in history:
“Fundraising takes months. It takes warming up relationships, it takes playing the game, it takes having a network that you've built. With Pipe, it took us a day.” - Helena Price Hambrecht - Co-Founder / CEO - Haus
With Pipe, Verma Farms was able to get seven figures of funding to complete an acquisition within 72 hours:
“I think what makes Pipe exciting is the ability to get the capital that you need for the business so fast, and the ability for entrepreneurs not to have to rely on venture capitalists or banks to get their money. Being able to leverage Pipe as a way to get funding allows for so many new opportunities that have never existed in the startup ecosystem.” - AJ Agrawal - Founder - Verma Farms
Pipe helped MUD/WTR focus on running the business, not running in circles looking for funding. They were able to take their time and confidently fundraise when the time was right, with no pressure for immediate cash:
“We don't need to put a pitch deck together. We don't need to act. We don't need to convince anybody. We see what's available based on how well we're doing as a company.
It's like Pipe is our faceless funding partner that's there, that's reliable, that we can call on anytime we need it. it's there in a jam. It’s there when we need to grow.” - Paul DeJoe - co-founder - MUD/WTR
Here’s how our customers, investors, and industry experts reacted when they had their “Aha!” moment with Pipe’s innovative trading platform:
- You have the option to answer this final question: Reference any attachments of supporting materials throughout this nomination and how they provide evidence of the claims you have made in this nomination (up to 250 words):
Total 65 words used.
Supporting Materials
Company Website: www.pipe.com
Product URL: app.pipe.com/signup
Twitter Handle: https://twitter.com/pipe
Supplemental Links: https://pipe.com/blog
Additional Links - https://pipe.com/newsroom
Alex Danco introduces how Pipe has solved the financing problem for recurring revenue companies: https://alexdanco.com/2021/03/10/pipe-it-platforms-funding-and-the-future/
John Street Capital speaks to the need for new financial solutions and Pipe’s answer in particular: https://jsc-capital.medium.com/recurring-revenue-the-rise-of-an-asset-class-eff0c4be9fa0
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