#Digital lending #Payment #SaaS
Pipe gives SaaS and other stable revenue stream companies a way to get their revenue upfront, connects them with investors on its marketplace, targets US and UK (global expansion planned). Pipe offers proprietary credit rating to investors for selection of the investment target, provides management platform services for investors. Revenue sources: commissions from transactions (both sides are charged), subscriptions and various service commissions. No competition business model as the Company does not take credit risk. “Blue ocean” market with fragmented players. x2.75 client growth rate in the last 7 months of 2021, x2 revenue growth expected in 2020-2023.
Harry Hurst, CEO
Round 4, March 2021
What does Pipe do?
Easy financing for companies: gives SaaS businesses and other companies instant access to cash flows by analyzing value of their subscription revenues
Return to investors: investors receive 2-10% monthly interest based on the credit rating of companies
Connects companies and investors: easy and quick way to get financing instead of taking a loan
What problem does it solve?
No dilution for founders shareholders do not dilute their ownership
No loans companies are not forced to take out loans
Why attractive now?
$3 bn tradable annual recurring revenue on the Pipe platform
$0.3 bln funding from focused investors Greenspring Associates, Morgan Stanley’s Counterpoint Global, CreditEase Fintech Investment Fund, Next 47, and others
$2 trn addressable SaaS market
$146 bln addressable SaaS market
11000+ companies have signed up for Pipe’s services
Why valuation is growing?
5x forecast 2022 growth to over $100m (conservatively), does not include revenue from other non-marketplace services
Accelerating client growth, 4000+ new clients signed up since May 2021
New business lines: Pipe Pro (operations management platform), Pipe Banking Services