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Through MUD\WTR, he’s working to share an alternative that gives people a lift while respecting—maybe even improving—their mental health. 

The company’s mission has resonated: Today, MUD\WTR has 130,000+ monthly subscribers.

After co-founding the company in 2018, Paul enjoyed both the opportunities and challenges of running a burgeoning business alongside a small but nimble team. And he quickly found himself managing explosive growth and a desire to ensure the company stayed focused. “Our first year, we grew over 400%, and our second year, 300%,” he says.

When it came to funding that growth, “We didn’t discriminate on how we were going to get money—we just really needed it quickly.”

The challenge: Streamlining growth while avoiding obstacles 

“When you have [working capital], the next step is you try to pour gasoline on it to go faster,” says Paul. MUD\WTR’s ambitions to grow could have been bogged down by the familiar hassles—and time-sucks—brought on by fundraising. Securing funding is often necessary and a worthwhile effort—but chasing a funding round can be stressful, sap resources, and can pull founders away from the mission that motivated them to start the business in the first place.

“We have the craziest testimonials from customers that they’re dreaming again, that they’re able to sleep, that they’re not anxious,” Paul says. “That’s why we’re excited to do what we do, and why we want to keep finding more [customers].” 

 know all too well: “Sometimes when your company’s doing really well, cash in the bank is going down because you have to keep buying inventory for the next set of customers.”

The solution: Flexible access to non-dilutive capital

Paul says he was sold on Pipe within “20 minutes.” Because unlike traditional financing, Pipe didn’t come with the often tricky fine print, restrictions, or complications. 

“When you’re looking for working capital, you want to negotiate 

 down, you’re trying to negotiate fees down, and you’re trying to negotiate payment plans or the speed at which you pay back,” Paul says. Pipe made it simple.

Freed from the pitching, guesswork, and negotiations of fundraising, MUD\WTR didn’t have to prove its worthiness to an outside party. Instead, they got back to building their business. “We don’t need to convince anybody [to give us capital]—we see what’s available [on the Pipe platform] based on how well we’re doing as a company.”

After educating himself on Pipe, Paul secured MUD\WTR $18,000 just to test the waters—and later $1.2 million. With Pipe, the company was able to instantly get access to cash flow, and stop worrying about what’s in the bank. 

“This is going to fundamentally change how we raise money and how we scale,” Paul says. “The only thing I don’t like about Pipe is that I didn’t start it.”

With Pipe, companies across a wide range of industries and growth stages can access working capital quickly and easily, based on the health of their business, just like MUD\WTR. Find out how Pipe can help you get the capital you need, or unlock capital for your own customers.

How the coffee-alternative startup used their recurring revenue to grow—and got back to focusing on the business.

Sometimes when your company’s doing really well, cash in the bank is going down because you have to keep buying inventory for the next set of customers.

How MUD\WTR changed their relationship with fundraising

Case Study: How MUD\WTR changed their relationship with equity fundraising

How MUD\WTR changed their relationship with equity fundraising | Pipe Blog

Founded in 2019, the startup quickly saw rapid growth. By 2021, 

 were looking to expand its offerings and reach, and to acquire the mission-aligned and Gen Z-focused 

The challenge: An acquisition that required liquid capital—immediately 

 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 

, we looked at traditional 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. 

 was able to help Verma Farms secure the funding, without dilution, and without the restrictive clauses of traditional bank 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.

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

We had 72 hours to close on over seven figures of funding... We looked at VC funding, we looked at loans, and none were able to get the deal done on time.

D2C

Case Study: How MUD\WTR changed their relationship with equity fundraising

Case study: How Verma Farms got access to financing in 72 hours

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Case study: How Verma Farms got access to financing in 72 hours

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