Pipe is a Los Angeles, California-based financing platform for SaaS companies. Founded in 2019 by Harry Hurst, Josh Mangel, and Zain Allarakhia, Pipe launched its SaaS platform in February 2020. The company's platform claims to offer SaaS companies a debt free alternative to acquire growth capital. It also allows company's who use the platform to offer customer's monthly or quarterly subscriptions rather than the annual pre-paid subscriptions many early stage SaaS companies require in order to gain financing. The company currently works with US-based companies, and foreign companies with a US-based subsidiary.
In June 2020, Pipe announced it had secured $60 million in seed funding. Pipe's seed funding round was led by Fin VC. It also received investments from Tribe Capital, Uncorrelated Ventures, Lachy Groom, Anthemis, and existing investors Craft Ventures, Fika Ventures, and MaC Ventures.
Pipe's financing platform is subscription based and allows SaaS companies to obtain instant liquidity on their subscription contracts. The platform is designed as a debt free an alternative to equity financing. The platform integrates with a user's existing billing platform to track subscriptions. It then generates capital payout offers based on the annual value of a company's subscriptions. Users are granted instant capital payouts based on the data the platform collects from a user's subscription billing data.