Relatively In the ‘fintech’ world, the Miami Us based company Pipe is well regarded as one of the new world dreamers that are surely making its way to the very top, with no signs of slowing down. As of the time of this writing, a Few Years back Pipe raises $6 Million in funding from Saas companies for venture debt and Now again the big news comes toward Pipe Industry.
This time Pipe Raises $50 Million In funding for expanding its Business, Siemens’ Next47 and Jim Pallotta’s Raptor Group lead the round and in this funding have participation of several other companies like Shopify, Slack, HubSpot, Okta, Social Capital’s Chamath Palihapitiya, Michael Dell’s MSD Capital, Alexis Ohanian’s Seven Seven Six and Joe Lonsdale.
Founded in the 2nd month of the eventful year of 2020, its launch was met with some serious after effects when the pandemic hit the very same year. However, the company did not waste any time in picking up the pieces and its pace, without moping around or taking a step back. Ever since then, this fintech startup has kept the business world on the lookout and has always wowed the audience with the best ideas.
Pipe has been in the market for over 2 years now, and has been making good profits and PR by selling dreams. In 2020, it had raised about $6M dollars as seed money to help Craft Ventures succeed in its prime goal and give the Software as a Service business a way out avoiding the regular road to funds through selling stakes to investors or capital funding companies.
Craft Ventures mainly aims to provide SaaS platforms a better chance at getting their revenue upfront by linking them with people interested in investments on the market. They help pair the investors and the startups so that they get offered a cut-down rate on the investment returns. An additional $10M dollar funding was also supplemented by the original $6M to the seed raised by Pipe.
Pipe was founded to create real change in the fintech industry. One of the main problems of startups has always been the inability of paying back the investors in time. This has led many dream businesses to the ground. Hence, removing the concept of equity shares, they purchased these shares from startups and agreed on a much-discounted return rate on the investment. This will help the startups to focus more on their products and growing their brand than they had to with the burden of paying off their investors.
In reference to this financing technique and fresh concept, Pipe added that this was all about widening the platform scope which spans outside just the software servicing companies to companies with a finite project plan and needful revenue stream.
This creates a game-changing environment in the fintech industry and would potentially include-
- Direct-to-consumer companies with a revenue payment plan as a default
- Internet service providers
- Streaming services
- OTT platforms
- Electronics and communications-based companies
Pipe analyses the statistics of the customer, taking into integration the data from related financial processes including the transaction process and banking, rating the company plans and policies- values, strategies, management, and income- clearing the way in qualifying them for the next funding and renewing their contract. These decisions also determine the viabilities of trading limits, ranging from fifty thousand dollars for smaller initial phase businesses to over a hundred million dollars for well sought-after companies. However, no bars are officially put on the maximum trading limit value.
In conclusion, Pipe is globally accepted as one of the best fintech startups in the new market, recommended and appreciated by investors and startup CEOs alike. Based on solid integrated data, processed by one of the finer software platforms, Pipe provides good and profitable contracts for the investors along with the best deals and proper funding for startups, increasing their chances at success, all the while maintaining the investment-revenue balance.
Although the interference is presently restricted to software on service, the Co-CEOs of the company have repeatedly assured us of their future involvement in other kinds of businesses too. The contracts are end-to-end protected by perfected terms and clauses exactly to the last letter, although no warrants or NDAs are used in the processing.
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