Pipe Technologies has raised $60 million in equity and asset financing to support the growth of its SaaS financing platform.
The seed extension round was led by Fin VC with participation from Tribe Capital, Uncorrelated Ventures, Lachy Groom, Anthemis, Craft Ventures, Fika Ventures, and MaC Ventures. The company has not revealed the split between equity and asset financing.
LA-based Pipe has built a subscription financing platform that enables SaaS companies to obtain instant liquidity on their subscription contracts as an alternative to "costly and dilutive" equity financing.
The platform lets cloud and SaaS software companies convert their monthly or quarterly subscriptions to their full annual value in cash, up-front.
On the other side of the platform, Pipe's investor partners, a vetted group of financial institutions and banks, get access to alternative investments in the form of highly predictable, recurring revenue-generating assets.
"We're fundamentally changing the way SaaS companies fund their growth by treating their subscriptions as a new asset class. Through our financing platform, SaaS companies can turn their monthly and quarterly paid subscriptions into the up-front cash flow they need to grow," says Pipe co-CEO Harry Hurst.
Meanwhile, the firm has brought in former LendingClub general counsel Michal Cieplinski as the company's COO and chief legal officer.