We know that growing a business can feel like a constant juggling act: from driving sales and managing a team, to prioritizing product roadmaps and keeping customers happy. Founders are often forced to step away from building their business and consider the numbers behind their day-to-day operations, in order to fundraise, which can be a serious distraction.
The good news is that the world of alternative financing is evolving by the day. Founders have a growing set of options for accessing capital which can give them time back to focus on higher-impact work. This aligns well with our mission at HubSpot, which is focused on helping companies grow in a way that doesn’t come at the expense of customer delight or that sacrifices the culture a team has worked so hard to build.
That’s why HubSpot Ventures is thrilled to announce our investment in Pipe, a company that is changing the way companies access capital and one that shares our mission to help companies grow on their terms.
Founders Harry Hurst, Josh Mangel and Zain Allarakhia started Pipe with the idea that recurring revenue streams are assets in and of themselves. Historically, there hasn’t been a two-sided platform connecting companies that have monthly or quarterly recurring revenue with investors who could bid to purchase these revenues for their annual value, upfront.
Pipe integrates with a company’s banking, payment processing, and accounting systems to rate a business almost instantly, without disrupting any existing workflows or customer relationships. The product tracks revenue streams automatically, and once companies are approved, they have access to the Pipe Trading Platform to see real-time bids for their full annual value.
They’ve attracted buy side participants who are vetted institutional investors who bid to purchase monthly and quarterly paid recurring revenues at a small discount to their annual value, unlocking an entirely new asset class. What this means for companies is that founders can now access low-cost, non-dilutive financing conveniently without the drawbacks of traditional debt or the distraction of raising growth capital.
We were attracted to Pipe’s bold vision to be the go-to platform for companies seeking convenient, low-cost capital, as well as their unique positioning around using ecosystem partnerships to help drive their growth. The entire Pipe team is on a mission to change the game in how companies like HubSpot’s customers access capital, and HubSpot Ventures is honored to be part of their journey.