Pipe Taps $6 Million of Seed Funding to Launch SaaS Financing Platform

Pipe Taps $6 Million of Seed Funding to Launch SaaS Financing Platform

Software as a service (SaaS) companies face a constant problem. They need money upfront to fund operations but their customers want to pay monthly. That means SaaS companies have to either provide discounts upwards of 40% for upfront payments or raise more capital, which hurts existing shareholders.


Enter Pipe, a new platform launched last September that enables companies with recurring revenues to tap into their deferred cash flows with an instant cash advance against the full annual value of software subscriptions. Facilities range from $10,000 to several million dollars per month, depending on the size of companies.

Pipe announced Tuesday it has raised $6 million in seed funding led by Craft Ventures, with participation from Fika Ventures, MaC Ventures, Naval Ravikant, WorkLife Ventures, Liquid2 and The Weekend Fund.

"Until now, the main financing option for SaaS companies has been dilutive equity rounds," said David Sacks, Co-Founder & General Partner at Craft Ventures, in a statement. "Pipe is the tool every SaaS founder has been waiting for. It allows SaaS companies to grow without dilution by financing their SaaS receivables."

Pipe is led by entrepreneurs Harry Hurst, Josh Mangel, and Zain Allarakhia. Hurst previously founded the car booking platform, Skurt, which was acquired by Fair.com for $50 million in 2018.

Pipe has offices in Los Angeles and San Francisco with support functions in Phoenix.

Subscribe to our newsletter to catch every headline.

Musicians are facing a tough road and the pandemic hasn't made life any easier. But changes are afoot that could help.

A flurry of deals between music copyright owners and a grab bag of online video purveyors may be just the first step in a process that could see "the most important copyright reform since the U.S. passed the Digital Millennium Copyright Act (DMCA) 22 years ago," according to one industry observer.

With it, artists and rights holders should be better positioned to benefit from the growing relevance of music across social media platforms, gaming consoles, virtual gyms and much more.

Read more Show less

It's never been a better time to "murder your thirst."

Seven months after raising more than $9 million in Series A funding, Santa Monica-based canned water startup Liquid Death has raised $23 million in Series B funding.

The round was led by an unnamed consumer-focused family office and participated in by Convivialité Ventures, Fat Mike (NOFX), Pat McAfee, existing investor in Velvet Sea Ventures and others.

Read more Show less
RELATEDEDITOR'S PICKS

Trending