Raise capital on your terms and increase your valuation
Many companies raise capital when they have an urgent need for cash. Pipe can help remove that urgency and reduce the amount needed in an equity raise by giving a company access to capital through its own existing recurring revenue streams.
Increase ACV, top-line revenue, EBITDA, and cash by limiting discounts:
Instead of discounting pricing to incentivize new customers to pay up front, with Pipe, you can access instant cash without the downside of discounting.
Another plus: On the income statement, the full value of the contract is recognized as revenue. This provides a major benefit above the line in gross margin while costs are booked below the line as an interest expense.
Another plus: On the income statement, the full value of the contract is recognized as revenue. This provides a major benefit above the line in gross margin while costs are booked below the line as an interest expense.
Invest in sales and marketing or new initiatives
With revenue pulled forward through Pipe, companies can close the gap between acquiring customers and earning that revenue back. Companies can reinvest more dynamically into customer acquisition, retention, and even product, while multiplying their annual contract value and revenue.
With Pipe, these new investments can be made without using existing operating cash flows to fund them, enabling companies to continue growth in existing and new strategies while building.
With Pipe, these new investments can be made without using existing operating cash flows to fund them, enabling companies to continue growth in existing and new strategies while building.
Reduce or avoid dilution
Many companies continuously raise equity to keep operations funded and to scale growth. Pipe can help remove the constant need for equity funding and become an alternative source of non-dilutive capital.
Get direct access to the capital needed to reduce the urgency of future equity rounds to fund predictable growth like sales, marketing, and operations.
Get direct access to the capital needed to reduce the urgency of future equity rounds to fund predictable growth like sales, marketing, and operations.
Access cash for mergers and acquisitions
Mergers and Acquisitions are a strategic and healthy path to growth for many businesses. Through Pipe, a company can be opportunistic by having access to cash within hours and without the extra costs and restrictions of traditional bank products that can drive up the total cost of the deal.
Pipe has none of the borrowing costs or restrictive covenants and can be used as a way to have flexible payback terms. Trading limits on Pipe can be healthy enough to complete an entire purchase and even the target M&A company’s ARR can be used to finance the acquisition.
Pipe has none of the borrowing costs or restrictive covenants and can be used as a way to have flexible payback terms. Trading limits on Pipe can be healthy enough to complete an entire purchase and even the target M&A company’s ARR can be used to finance the acquisition.
Why Pipe?
Never take on restrictive debt or dilution again. Companies can now unlock their recurring revenue, on demand.
“Pipe is super start-up friendly. And in terms of getting capital that you need for an M&A transaction, we've never come across a faster way to do it.”
“With Pipe there's no guessing, no dilution, and it doesn't impact our business the way other forms of capital do. The fundraising landscape is changing—and Pipe feels like the future.”
"Pitch customers, not investors, and let Pipe convert your contracts into instant, dilution-free financing.”
“Pipe is the most founder-friendly, non-dilutive, financing instrument I’ve seen to date. Pipe supercharges cash flows from multi-year sales contracts, without any ACV degradation. Further, their versatility with monthly/quarterly payment terms is a huge plus.”
"We often risked losing deals by requiring annual upfront payments when customers wanted to pay monthly. Pipe solves this and allows us to invest more heavily in our growth. It may easily save us a fundraise.’’
"Up until now, SaaS businesses had only two choices: scale fast while accepting significant debt or dilution, or bootstrap, while accepting less available cash flow and usually slower growth. Pipe is now the third option: scale without dilution."
"Managing cash flow is critical for any SaaS business, and being able to offer monthly payment terms to customers but get the annual upfront cash flow through Pipe is a competitive advantage for healthy growth of the company!"
