Lack of liquidity is a pressing—and common—challenge many founders face. Even if cash is on the way and business is healthy, having the right amount of capital on hand at the right time can be critical both to managing day-to-day operations and continuing to invest in your core product or service. 

The good news: Pipe can enable founders of companies with recurring revenue to access non-dilutive capital by connecting a couple of key accounts securely to its platform. Pipe makes getting access to capital fast, flexible, and seamless to get started, so you can grow your company on your terms. 

Let’s take a look at how integrations make trading on Pipe more efficient for you and your team.

First things first: How does trading on Pipe work?

It’s that easy. Once you’ve signed up and connected your accounts, you can get a trading limit (that’s how much capital you can pull forward) and a bid price (that lets you know how much that capital will cost) so you know what’s possible today and can act quickly in the best interest of your business.

Keep in mind that as your company grows, so too can your trading limit. Bid prices and trading limits are updated regularly and can improve over time as you build trading history.

How integrations help unlock your Pipe trading limit

Pipe aims to help you be more financially agile so you can grow your business on your terms, without the heavy manual overhead and paperwork that often comes with traditional financing. 

That’s why Pipe’s trading platform integrates with popular billing managers, banks, and accounting platforms to make getting access to the capital you need easy. 

But remember it’s not about cutting corners—it’s about efficiency. By securely connecting your accounts to Pipe, we’re able to bring together speed and responsible analysis to quickly provide you with a trading limit and access to the best possible bid prices.

What platforms and services integrate with Pipe?

Pipe connects directly to the banking software, billing managers, and accounting platforms most businesses use to manage payments, send invoices, reconcile accounts, track finances, and more. By securely connecting your accounts with Pipe, we can keep your trading limit and bid price up to date with no extra work on your part.

Let’s take a look at the growing list of platforms and companies that integrate with Pipe.

Looking for something that isn’t listed here? Let us know.

Why Pipe integrates with banking software

Securely connecting your bank account is important for establishing your bid price and trading limit. Since Pipe doesn’t require personal guarantees or pull credit reports, syncing your bank account helps us understand your company’s burn and runway. 

Pipe partners with Plaid to enable secure, frictionless connections with hundreds of financial institutions. This includes major banks like Chase, Bank of America, Barclays, and HSBC, credit unions, and startup-favorite financial institutions like SVB, Mercury, Starling, and Brex.

Why Pipe integrates with billing managers

In order to trade, Pipe needs to identify your revenue streams and sync them to your Pipe dashboard. You can trade a single revenue stream or bundle multiple together to trade them for a bulk sum payout.

What billing managers integrate with Pipe?

Pipe currently integrates with popular billing softwares below. Whether you currently work with these tools or are looking to level up your current setup, we’ve shared a little information about each to help you make the best decisions for your business.

Suite of web-based tools for managing the performance, sales, and reviews of apps that are sold on the App Store.

Billing and revenue management platform built for subscription businesses.

Subscription management software for B2B SaaS companies that leverages billing, accounting, and data analytics tools.  

Platform designed to collect recurring and one-off payments from customers across the globe.

Billing tool that enables businesses to create and send professional, customizable invoices to customers.

All-in-one subscription management and recurring billing platform built for recurring revenue companies. 

Suite of fully integrated payment products built for online and in-person retailers that simplifies managing businesses online.

Syncing your accounting software makes it possible for Pipe to better understand the financial health of your business—now and over time—through your P&L and balance sheet. 

What account software integrates with Pipe?

Pipe connects to the following accounting platforms, and we’re always working on adding new integrations.

All-in-one invoicing and accounting solution designed for small to medium business owners and accountants.

Online accounting software created to help small businesses in the UK get paid faster and manage their accounts. 

Integrated cloud business software suite that includes business accounting, ERP, CRM, and e-commerce software.

Accounting software solution built to help small to medium businesses manage their books with a variety of tools.  

Cloud financial management and accounting software for small businesses in the United States.

Online accounting software for managing business finances.

For companies with product-market fit and predictable recurring revenue of $50k in ARR or more, Pipe can enable you to connect with non-dilutive capital to finance growth. Connecting to your current systems and platforms helps us quickly determine the financial health of your business so you can get access to the capital you need to continue growing and running your business on your terms. 

These integrations are just the beginning. 

 to request integrations with other tools that may not yet be listed above. If you use another software but want to get started right away, Pipe also offers manual upload options via .csv files. 

For more information on how to use your recurring revenue to access non-dilutive up-front capital through Pipe, visit our 

page, or learn more about how Pipe works for 

What integrates with Pipe? From Plaid to GoCardless to Quickbooks, learn which apps and softwares securely connect with Pipe.

Pipe enables companies with recurring revenue—like SaaS, D2C subscriptions, services, and more—to access non-dilutive capital. Learn how integrations with banks, billing, and accounting software enable access to fast, flexible funding for your business. 

Integrations | Pipe Blog

Pipe & Friends: What integrates with Pipe?

When your service business is growing, you want to build on the momentum. But even if you have money coming in, you’ll need enough of it up front to invest in scaling your business. It’s important to know your financing options so you can ramp up your marketing and sales efforts, expand your services, or grow your team at the right time. 

Until recently, service business owners looking to raise capital for growth had two primary options—

. But if you have predictable recurring revenue, you have another option—trading your recurring revenue streams on Pipe’s platform for non-dilutive capital.

In the past, financing has often either been collateralized by physical assets or has carried higher costs to match the perceived risks. But recurring revenue—whether through retainers, contracts, memberships, rent, management fees, or beyond—is emerging as a new asset class in our modern economy. 

How come? Advancements in technology. Secure live data connections allow Pipe’s algorithms to analyze your revenue streams and the health of your business in real time, making financing much more efficient without cutting corners. 

Whether your future recurring revenue is slated to come in next month, next quarter, or next year, it’s a bona fide asset. And you can trade that asset on the Pipe platform for up-front access to capital—your capital—within 24 hours of signing up for Pipe and fully connecting your accounts.

Scaling your service business without giving it away 

Starting and running a business is full of challenges. While you need capital to grow, and raising a funding round can be an effective way to get that capital, it can also be a distraction that lasts months. Sometimes, it might even feel like a full-time job—especially if you consider the time it takes to warm up relationships, build a network, and constantly pitch.

On top of diverting your attention from building your business, selling equity in your company dilutes your ownership. This can absolutely be worth it at certain stages, but it’s a strategic decision to make with thought and care, not just by default. 

If you’re looking to grow or scale up your service business, Pipe offers a fast, flexible alternative so you grow on your terms—without giving up unnecessary equity. 

From property management to recruiting, accounting to consulting, landscaping to IT and fitness centers, we’ve seen all sorts of service businesses tap into non-dilutive financing through Pipe—and they’ve used that capital in all sorts of ways to grow their businesses. 

Let’s dig into three popular use cases for service businesses on Pipe.

Fund customer acquisition with non-dilutive growth capital

For many (if not most) businesses, sales and marketing are key components to acquiring new customers. Typically, investments in those categories are also predictable, making it easy to measure and prove ROI. That’s why many service businesses skip the loan, reserve their precious equity dollars [for the big stuff], and use Pipe to invest in things like hiring and training salespeople, scaling ad spend, and launching more marketing campaigns. 

Your customers might never even know Pipe exists—but they will notice things like a superior service or upgraded facility.

Many service businesses use the recurring revenue they pull forward on Pipe to level up the experiences the business provides. For example, you can scale faster by hiring employees who can improve or expand your services, such as a customer service rep or an operations consultant. Or you could use Pipe to upgrade your tech stack—for example, paying for a more robust CRM system with AI capabilities. Some companies even Pipe their recurring revenue to improve the quality of facilities or offices by renovating or adding more equipment and amenities. 

Access alternative financing for mergers & acquisitions

Mergers & acquisitions (M&A) can be a powerful way to expand your offerings, improve your services, and gain new customers. M&A can also be a way to achieve economies of scale. We’ve seen service businesses make the most of these opportunities by using Pipe as a quick, flexible 

funding source for strategic mergers and acquisitions

. (One D2C founder even leveraged Pipe to close an acquisition deal with a tight deadline in 72 hours!)

Does Pipe replace loans and equity financing?

While some companies use Pipe as their only financing tool, it doesn’t have to be the be-all and end-all. Every company is different, and Pipe can be layered into your ideal capital stack in whatever way works best for you.

When you’re at a stage in your company’s journey where your ARR is under $100K, it might not yet be time to Pipe. (Equity or loans can be great tools at that stage!) But once you’ve got service-market fit and a rinse-and-repeatable growth strategy, Pipe could be just what the doctor ordered if you want to finance growth without taking on more dilution or getting stuck with 

In other words? Think of Pipe as part of a toolkit that you can use strategically to grow your company on your terms.

NASDAQ is for equity. And now there’s Pipe for recurring revenue.

So we know Pipe can help service businesses with hiring more employees, financing M&A deals, and improving customer experience—but let’s take a step back. How exactly does it all work? As the world’s first trading platform for recurring revenue, Pipe allows you to trade your predictable recurring revenue streams for up-front capital to scale your business.

And it’s easy to get started. Just sign up and securely connect your banking and accounting systems so Pipe’s algorithm can analyze the health of your business. Once you’re connected and approved, you’ll unlock a trading limit and bid price (typically .93-.98 on the dollar) so you know exactly how much capital you can access and what your cost of capital will be. When you’re ready, click the “Trade Now” button, and you’ll see money in your account within a day. It’s fast, flexible, and transparent. 

Pipe offers a new option for accessing financing your business as you scale. Sign up, get connected, and see how much you qualify for today. 

Real estate, accounting, consulting, you name it—learn how professional service companies access non-dilutive capital through Pipe.

Looking to scale your service business with non-dilutive capital? Check out how to use the Pipe trading platform to convert recurring revenue into up-front cash quickly.

Pipe for Service Businesses | Pipe Blog

How to scale your service business with Pipe

Pipe for service businesses | Pipe Blog

If you’re thinking about your next M&A transaction, you’ve probably considered one of these two popular options for raising the necessary capital.

And while using equity or debt could end up being just what you need, a third financing option may offer more opportunity and flexibility when it comes to closing a fast and frictionless M&A deal. That third option—pulling forward your recurring revenue—can give you access to capital, along with the speed and agility you need for strategic mergers and acquisitions.

Recurring revenue streams are becoming much more common in today’s market. Products, services, or maybe even customers that produce consistent and reliable revenue month after month and year after year are usually what comes to mind—things like memberships, subscriptions, and long-term contracts. These are normally thought of through the lens of a profit & loss statement, and while that’s true, recurring revenue is much more than that. 

In fact, there’s been a shift towards thinking about recurring revenue streams not just as a revenue line item on your income statement, but as an asset on your balance sheet… one that can help your company access capital to finance your M&A transactions faster and without taking on loans or diluting your equity.

We’ll get into how recurring revenue financing works and how it can be a game-changer for your next 

. But first, let’s quickly look at a few of the reasons why founders and CFOs might consider looking beyond traditional methods to finance M&A.

The challenges of equity financing for M&A

 is a time-tested method for building a cash cushion in preparation for an acquisition, it can also be less than ideal in some circumstances. There are three significant challenges posed by equity financing when it comes to M&A: access, timing, and dilution of ownership. 

The first hurdle to overcome if you want to use equity financing to fund an acquisition is limited access. Many companies simply don’t have access to the venture capital firms that could help them expand. Whether or not you can access equity financing depends on factors like your location, the size of your company, and your industry. Sometimes, equity also depends, at least somewhat, on existing relationships, which can create biases and blockers that hold back underrepresented founders.

The second challenge is timing. Countless acquisitions have fallen off the table, so to speak, due to financing that couldn’t be lined up in time. Raising equity specifically to fund an M&A transaction can be a tough project because equity rounds often take 3–6 months or longer from start to finish. 

Last but not least, if you do have access to venture capital funding—and at the right time—you’ll likely have to give up a sizable portion of your company. (Many founders—and their teams—spend years laboring away to grow the business and end up with a tiny fraction of ownership after several rounds of dilution.) 

While dilution can be a worthwhile tradeoff in some cases at some scales, it’s certainly not right for everyone. Traditionally, that’s left founders looking for a loan…

Sure, funding your acquisition with loans may allow you to avoid dilution completely, but loans come with their own challenges, as well. 

One potential challenge of securing debt financing is actually getting a bank to agree to give you a loan. If you’re a young company looking to take advantage of an M&A opportunity, you may have a strong income statement because of your recurring revenue streams but a weak balance sheet due to a lack of traditional assets. The bank would most likely want to see an asset that could be used as collateral, which your balance sheet currently doesn’t have.

 also normally takes several months to get in place. When you have a hot opportunity and need to move quickly, trying to secure a loan could be tricky—and troublesome.

And while loans are often thought of as the alternative to dilutive equity financing, some debt financing deals require personal guarantees and warrant coverage—which means if certain circumstances unfold, your lender can soak up some equity and further dilute your company’s stakeholders. 

Fortunately, the way assets are viewed is changing, giving you options for financing M&A without the strings attached. 

While traditional debt financing may want real estate, inventory, or PP&E as collateral, many of today’s companies generate strong recurring revenue without much in the way of physical assets. With recurring revenue financing like Pipe, that recurring revenue is the asset, and can help you access the capital you need to close a deal (or otherwise grow your business!). 

How? Healthy companies with a recurring revenue model tend to provide solid returns for investors. (For investors, the returns act similarly to a fixed-income product.) That means there are plenty of investors interested in recurring revenue streams and willing to offer up-front capital for them, at a small discount 

So how do companies looking to cash in on their recurring revenue streams connect with these investors? That’s where Pipe comes in.

Pipe is the world’s first trading platform for recurring revenue streams. Through Pipe’s trading platform, you can turn up to a year or more of your monthly recurring revenue into up-front capital to finance an acquisition without loans or dilution. With Pipe, there’s no need to look for investors or make a pitch—the two-sided platform seamlessly links your tradable revenue streams with institutional investors. You can simply select the streams you want to trade and access capital with the click of a button. 

Trading on Pipe is fast, with no months-long wait for loan approval or lining up an equity round. (In fact, one founder used Pipe to get 

 to close an acquisition.) You can also coordinate with the target company and use their recurring revenue to fund the transaction once approved on the platform. 

If you’re looking to sell your company rather than buy one, Pipe can be helpful there too. By connecting to the platform and getting an approved trading limit, you can offer a financing option for your potential buyers—just think of it like the target company strategy mentioned above but in reverse. If you’re looking to sell down the line but not quite ready to take the leap, you can also Pipe your revenue for capital to grow your company for a bigger exit value. 

Pipe: Your source for alternative M&A financing

Equity and debt will always have a place in the world of M&A transactions. But by using Pipe’s trading platform, your company may be able to access the growth capital you need without loans or equity dilution and on a much faster timeline. 

how Pipe works for mergers & acquisitions

 today and get connected to find out your trading limit. 

Interested in buying or selling a company? Check out our  partner eBooks with MicroAcquire for more resources: 

Whether you’re acquiring a company or selling your startup, Pipe can help you leverage your recurring revenue to seal the deal.

Learn how startups and businesses with recurring revenue can use Pipe to access capital for mergers and acquisitions without taking on equity dilution or bank loans.

How to use Pipe to finance your next M&A transaction

Pipe for Mergers & Acquisitions | Pipe Blog

Founded in 2019, the startup quickly saw rapid growth. By 2021, Verma Farms and founder AJ Agrawal were looking to expand its offerings and reach, and to acquire the mission-aligned and Gen Z-focused CBD brand Penguin to help achieve that.

The challenge: An acquisition that required liquid capital—immediately 

M&A transactions take cash—and with limited capital available, especially within the CBD industry, to close the Penguin deal, Verma was at risk of hitting a wall. “We had 72 hours to close on over seven figures of funding… we were up against this huge deadline to get this deal done. We looked at VC funding, we looked at loans, and none of this was able to get the deal done on time.” AJ and team needed a solution, and they needed it fast.

The solution: Industry-agnostic, non-dilutive capital 

When AJ contacted Pipe, he was petrified about the situation he was facing. Aware of the deadline, one of Pipe’s revenue managers sent a calendar invite that same day, and soon they were on the phone going through the financials to get the deal done. “I’m still in shock about how much they did to help me,” says AJ. 

Within that tight 72-hour window, Pipe was able to help Verma Farms secure the funding, without dilution, and without the restrictive clauses of loans. “And they celebrated with us,” AJ adds. “I think what separates Pipe is the speed at which they can provide funding…. [and they’re] super-friendly [to startups] in terms of the equity that they’re able to hold without diluting the company in any way.”

That strategic acquisition—and finding the right financing scenario to get the deal done—has helped Verma find even more momentum. “Since our deal with Pipe, we’ve grown a high percentage month-over-month,” says AJ. “Now our company has had more and more offers for an M&A transaction, which has been really interesting. It’s kind of the company coming full circle.” In fact in December 2021, Verma Farms was itself acquired by FE International, Inc.—an award-winning global M&A advisor of SaaS, e-commerce, and content businesses.

customers are using Pipe to grow on their terms

Spoiler alert: They leveraged their recurring revenue to access non-dilutive capital when time was of the essence.

In this case study, learn how AJ Agrawal and CBD brand Verma Farms used their ARR to access non-dilutive capital through Pipe to quickly finance a strategic acqusition and seal the deal.

How Verma Farms financed an acquisition in 72 hours | Pipe Blog

Case study: How Verma Farms financed an acquisition in 72 hours

MEET BUNGALOW—a residential real-estate company and co-living platform reinventing how people live and move.

 The San Francisco-based company has been growing into major markets across the US to expand options for both tenants and landlords. They’re harnessing tech to modernize what had previously been one of the biggest low-tech gambles you could make—making real estate and roommate decisions.

The challenge: Staying focused on the business—not fundraising—while growing quickly

To deliver a truly great experience to their customer—and an app that matches you to the right housing and the right roommates—it’s crucial for CEO and co-founder Andrew Collins and team to prioritize their time and resources. Bungalow’s people-centered value propositions hinge on decisive leadership, but in a fast-growing company, fundraising could easily pull Andrew away from the business:

“Fundraising is a distraction ultimately from running the business and doing the things and building that I think all entrepreneurs love doing best,” said Collins. “One of the most stressful parts about running an organization—and the least fun—is fundraising.”

The solution: Self-serve access to non-dilutive capital through Pipe

Bungalow leveraged Pipe’s recurring revenue trading platform to connect to non-dilutive capital with the click of a button.

Andrew says he was “blown away” by Pipe after trying it out. That he could see how much capital Bungalow was eligible for, and then choose how much of that limit to withdraw with a drag and a click was “nothing short of incredible.” The hustle and time spent raising capital could be diverted back to the business with growth capital suddenly at his fingertips.

“At the end of the day,” Andrew says, “if you have future contractual cash flows, you can pull that regardless of who you are, or where you are.” 

The results: More focus, more flexibility, more growth

In the post-COVID world, Andrew stresses that flexibility in how people live, work, and move is here to stay. With flexible access to funding through Pipe’s trading platform, Bungalow scaled into 10 new markets over the course of the 12 months, and they plan to expand into 10 more in the next 12.

“The best part about Pipe is the accessibility,” he says. “That democratizes the platform so that you can make those growth investments… when you’re running a business, when you’re starting a business, when you’re building? 

Bungalow CEO Andrew Collins shares how the company used Pipe to leverage their recurring revenue and grow.

In this case study, learn how Andrew Collins and co-living company Bungalow leveraged their recurring revenue and the flexibility of Pipe’s alternative financing platform to grow into 10 new markets—on their terms.

How Bungalow used Pipe to scale into new markets | Pipe Blog

Case study: How Bungalow used Pipe to expand into new markets

How Bungalow used Pipe to scale | Pipe Blog

As it turns out, being a founder is hard. You need to do everything—build a product, find product-market fit, get the right people on your team, and convince a few friends to become customers. If you’re lucky, your business will survive the early stages and you’ll even have an opportunity to grow. But for many founders, growth is a major challenge. Folks don’t know where to get started, or how to invest—if they even have the resources to invest.

That’s why we’re excited to share that 

 to help startups grow better, on their terms.

Through this partnership, Pipe will make up to $100m of non-dilutive capital available to eligible companies in the HubSpot for Startups community (whether you’re already part of it or you join now), all fee-free. Additionally, Pipe + HubSpot customers will be eligible for a meaningful discount off HubSpot as part of their HubSpot for Startups program.

But most importantly, this partnership provides startups with the core resources they need to grow:

Through the Pipe + HubSpot partnership, a generation of startups will get training on how to grow sustainably, along with the tools and access to capital they need to invest in that growth.

As companies begin to scale, they often run into working capital shortfalls. 

SaaS and other recurring revenue startups

 frequently have a payback period of 12 months or more. That means a dollar invested in growth today doesn’t come back as cash for another year.  

So while HubSpot is providing the training and tools founders need to build and scale their businesses, those founders may not have the capital they need to make the best use of those resources. Folks typically solve this by selling equity in their company (which can get expensive quickly if those growth plays work), or by charging annual up-front fees (often with a big discount attached, which can cut deeply into your profit margins).  

Pipe provides an alternative by enabling SaaS and other recurring revenue companies to trade their future revenue streams for non-dilutive cash, instantly. This allows startups to provide flexible pricing to their customers, while getting the up-front capital they need to invest in future growth.

With HubSpot + Pipe, founders now have access to the training, tools, and capital they need to grow better and grow on their terms. We’re excited to share this with you—learn more at 

Introducing a new partnership to help you expand your business—and tap into non-dilutive capital to finance that growth.

Learn how to receive fee-free, non-dilutive capital for growth and a discount on HubSpot.

Grow your business with Pipe + HubSpot

Pipe + HubSpot: Tools, education, and capital you need to grow faster, better, and on your terms

Traditional financial services are often slow to support industries with innovative business models. But here at Pipe, we’re working to equalize financial access and help companies grow on their terms. That’s why we’re excited to announce the Pipe API, which lets companies offer embedded alternative financing to customers while they use their recurring revenues to build and scale.

The API will help extend access to financing across industries—including less “traditional” industries like bitcoin mining. Let’s take a look at the API in action.

Cryptocurrency is at the center of a booming movement to decentralize finance, known as DeFi. With many traditional financiers hesitant to work with companies in the crypto space, the industry and community are hungry for alternative financing solutions to ensure it remains accessible to the many, not just the few.

The cost of ASICs, the specially designed hardware systems used to run viable and competitive mining efforts, can be upwards of 10,000 USD. If you want to mine bitcoin today, you have to pay cash up front for hardware and hosting, with few, if any, financing options available. With Pipe’s new API enabling embedded alternative financing for emerging and overlooked industries by traditional finance like crypto, that’s changing.

Compass Mining is no stranger to finding new and alternative solutions in the crypto space. Compass is leveraging the Pipe API to launch a Mine Now, Pay Later option that allows miners to pay for their hardware and hosting in installments.

“We believe everyone should be able to mine bitcoin, and Pipe’s Mine Now, Pay Later is a big step in this journey,” says Compass Mining’s CEO, Whit Gibbs. “Together with Pipe, we are accelerating the growth of bitcoin mining by democratizing access to the critical financing options that traditional banking institutions have ignored.” 

‍Mine Now, Pay Later is a financing offering for bitcoin mining hardware and hosting companies like Compass. This empowers bitcoin mining hardware companies to offer payment terms to their customers on mining equipment and services.

With this initiative, Pipe is providing access to the capital markets for bitcoin mining hardware companies and other industries with innovative business models that traditional finance has not historically supported.

Learn more about how companies can use Pipe’s API to better enable customers like bitcoin miners. 

How are we making this happen? With the release of our new API. The Pipe API allows companies with a recurring revenue business model to securely sync to the Pipe trading platform—now, companies can both pull forward capital for growth themselves, and offer embedded finance solutions for customers.

Pipe’s data-driven platform aims to provide direct access to the capital markets, providing founders—regardless of industry—with an alternative financing solution so they can grow their businesses on their terms, without restrictive debt or dilution. Pipe’s new API is a natural next step in expanding those possibilities.

With the Pipe API in beta, we’ve seen companies in a range of industries access capital markets to turn recurring revenue streams into up-front capital.

“The launch of Pipe’s bitcoin mining solution and the Pipe API are a clear sign of our intention to shine the light on markets and businesses that have flown under the radar of traditional debt and equity financing,” says our co-founder and co-CEO, Harry Hurst.

By leveraging the API to provide an embedded finance solution for customers, companies can scale faster without the traditional hurdles of raising rounds or chasing loans—and without sacrificing cash flow to offer payment plans.

 to see how Pipe can help you grow your business on your terms.

Interested in using the Pipe API for your business? 

How Pipe’s API is enabling bitcoin mining and other innovative industries to offer alternative financing

Learn more about how Pipe’s API is powering innovative industries through embedded alternative financing. First use case? Compass Mining and Pipe’s API are enabling bitcoin miners to mine now, pay later for their ASICs. 

Introducing the Pipe API | Pipe Blog

Introducing the Pipe API and Mine Now, Pay Later

The Media and Entertainment industry is big business. In 2020–2021, the impact of the COVID-19 pandemic only sped up the growth of the industry: While your favorite theater or movie pub may have been temporarily shut down, streaming services flourished and spending on content by platforms like Amazon, Netflix, and Hulu skyrocketed. (Case in point: Global content spend from broadcasters increased from $189.1 B in 2019 to $220.2 B in 2020.)

Unfortunately, the people who make entertainment a reality often don’t see the financial fruits of their labor for quite awhile: Creators, producers, and rights holders of film and television content often find themselves waiting years to realize the full value of their contracts. The problems this presents to many creators and producers in the industry are real—and so are the solutions alternative financing has to offer. 

When you think of doing business in the entertainment industry, what’s the first thing that comes to mind? Maybe it’s audiences binge watching 

and devouring content at a rate never seen before. Or maybe it’s splashy headlines about streamers spending vast sums on television and film budgets (like 

Amazon spending $465m for one season of Lord of the Rings

). The industry may seem constantly in motion, and streaming has fundamentally changed the game for audiences and creators alike. But behind the curtain, there are independent producers and rights owners who have to wait years to see their full payment come in, delaying their ability to produce or acquire the next movie.

Licensing agreements vary from one platform to another, but it’s well known that these agreements are often slow to pay out, even when they’re not tied in any way to the performance of the content. Streamers stretch their budgets to afford as much content as possible in order to  attract subscribers, but this can create substantial lags for producers and rights owners who get paid slowly over the licensing period. From SVOD to cable to free TV, it can take anywhere from 2–5 years for licensing fees to trickle down after the content is delivered. In the meantime, creators and producers are starting work on something new with only a small fraction of the revenue from the last project available to finance the next.   

Traditional financing for entertainment companies

When business owners need funds, they often 

 in their company. But in the world of media and entertainment, traditional financing options can be very hard to come by. Many lenders won't touch entertainment licensing revenue because they simply don't understand it. Of course, there are banks that specialize in entertainment, but these are few and far between if you live outside of major entertainment hubs like Los Angeles, New York City, or London.

 access traditional financing for a media or entertainment project, you still face the hurdles inherent to equity and debt. Loans can take several months to come through and often come with covenants and restrictions that constrain your choices when it comes to running or scaling your business. For example, they may forbid you from taking out future financing elsewhere, or dictate certain financial metrics you have to maintain to avoid default. Equity financing may not come with those terms, but involves selling off a portion of your ownership interest, which can have a major impact on your creative freedom—not to mention your future profits.  

For most media and entertainment companies, loans and equity financing are a less-than-perfect fit with unnecessary costs, delays, and limitations. Creators and rights holders deserve an easier financing solution—especially considering the reliability of licensing fees and the positive trends in the industry. 

How does Pipe work for media and entertainment companies?

Pipe makes it possible for creatives, distributors, and rights holders to fast-forward their future licensing revenue. With instant access to those funds, they can use it today to fund their next project and grow their business. So how exactly does it work?

We know how hard it can be to get funding in place—and how crucial it is to keep your momentum going into the next project while also taking care of your people. That’s why Pipe takes an approach that makes flexible financing available when you need it, so you can get back to the good stuff. 

Pipe’s trading platform sees recurring revenue streams for what they are—a powerful asset class that’s both compelling and valuable for investors. Contracted licensing fees are a form of recurring revenue, and a very stable one considering they often come from established companies and industry titans like Netflix and Amazon. Revenues like this often move independently of—even opposite of—the stock market and institutional investors can find these future revenues an appealing means of diversifying their portfolios. Pipe works with many of the biggest entertainment companies in the world to make the process seamless and ensure all contractual obligations are met. 

Access to capital without restrictive loans

With a loan, there are layers of middlemen taking a cut. The bank raises capital at a certain cost, marks it up for their own profit, passes it to the lender you’re working with, and on and on it goes. With all these costs stacking up, you’re left with a much higher cost—and the lender is incentivized to charge as much as possible to make a bigger margin. 

 and factoring companies may work with the entertainment industry, and at first glance they may look like a “bank-free” alternative, they’re almost always tied to a bank or debt facility that provides the funds. That means that your capital may come with strings attached, and likely at a higher cost.

Because Pipe’s platform allows for an actual asset sale that exchanges future revenue streams for up-front cash, it’s not a loan—and because Pipe is a trading platform, you aren’t reliant on a bank, but are tapped into a marketplace of institutional investors who bid on your revenue streams. This trading platform model helps you get capital at a lower cost—and without the warrants and covenants that may come with traditional loans.

You get the funds you need faster, at a lower cost, and with no surprise endings. 

When you finance your media and entertainment company with Pipe, you can fast-forward your long-dated contracted revenue and use it today to grow your business and fund your next creative project.

. Have questions, or curious about Pipe for music, podcasts, sports, gaming, or beyond? Get in touch at 

Producers, creatives, and rights holders can now fast forward long-dated receivables for film, television, and other entertainment projects

Learn how entertainment producers, distributors, creatives, and rights holders can access non-dilutive capital to get paid more quickly.

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