Fintech is a rapidly developing industry. According to the various reports the transaction, Pipe has raised another round of funding at a $2 billion valuation, just weeks after raising $50 million in growth funding. Pipe has recently raised $150 million in a massively oversubscribed round led by Baltimore, Md.-based Greenspring Associates, despite the fact that the round is still ongoing. The reports also suggested that even though the company has signed a term sheet, more capital might still come in. The fundraise was attended by both new and current investors. The company’s current valuation is a big step up from its previous one. Pipe has refused to comment on the offer, despite the fact that its platform was only launched in the last year. Pipe raised almost $6 million seed round led by Craft Ventures a little over a year ago to help it pursue its mission of providing SaaS companies with a funding option other than equity or venture debt.
As per the various reports, the money was used to offer SaaS companies a way to get their revenue up front by connecting them with investors on a platform that offers a discounted rate for the annual value of those contracts.
Pipe, based in Miami, recently announced a new round of investment — $50 million in strategic equity funding from a slew of high-profile investors. Pipe’s software interacts with a customer’s payroll, payment processing, and banking processes to evaluate key metrics. It then analyses the company’s results in real time and decides whether or not they are eligible for a trading cap. Trading caps currently vary from $50,000 for smaller early-stage and bootstrapped businesses to over $100 million for late-stage and publicly listed businesses, with no upper limit on the amount of money that can be traded. Hundreds of millions of dollars were traded on the Pipe platform in the first quarter of 2021.