How can we help?
What is Pipe?
Pipe is a trading platform that enables entrepreneurs to grow their business on their terms. Pipe allows companies to transform their recurring revenue into upfront capital, instantly. For entrepreneurs, that means more cash flow for scaling a business without debt or dilution. For investors, Pipe has unlocked the largest untapped asset class. Whether you’re an entrepreneur or an investor–Pipe is growth on your terms.
How does Pipe work?
For companies with recurring revenue streams, getting approved for a trading limit takes minutes. Simply connect your existing systems to Pipe and within hours you can be approved to start trading. Once approved, you’ll see your portfolio of customer contracts ready to trade. You’ll also see real-time bids for the annualized value of these contracts from institutional investors. With Pipe, it’s as if all of your monthly and quarterly customers paid you upfront, overnight.
For institutional investors, Pipe gives you access to the world’s first trading platform for recurring revenue contracts. You can determine the type of contracts you’d like to purchase, then further define and adjust your risk profile. After that, we run your portfolio on autopilot, automatically servicing your account while you track performance in real-time.
Do I need to tell my customers that we’re using Pipe?
Nope. With Pipe, there’s no disruption to customers, and the way you bill them directly never changes. To your customer Pipe doesn’t exist.
Is Pipe right for my company?
If you have recurring revenue and you’re looking to grow - yes! Pipe is built for companies of all shapes and sizes from bootstrappers all the way to publicly traded and everything in between. The best way to see what Pipe can do for your business is to go through our simple sign up process which takes just a few minutes. There’s no cost to join Pipe and no obligation to ever make a trade.
Is Pipe available to companies based outside the US?
Yes, so long as you have a US subsidiary - we can work with you globally. The best way to see if your company can use Pipe is to go through our sign up process. If you’re not eligible today, we’ll notify you as soon as we launch in your country.
Does it cost anything to sign up?
No, there’s no cost to join Pipe, and no obligation to make a trade. Signing up takes just a couple of minutes. You can find out how much capital you can access within hours.
How is the payout value for my subscriptions determined?
The price investors are willing to buy your recurring revenue for ranges based on the health and size of your business. We constantly work to get you the best price possible, bids improve over time as you build trading history on Pipe and grow as a business. The easiest way to get your live bid price is to go through our seamless, commitment-free sign up.
How is my trading limit determined?
Each company we work with is unique - limits can range from $25,000 to $100M. Once you start trading on the Pipe platform, we evaluate your account on a weekly basis, so your limit scales as your business scales. Building up trading history is key to increasing your limit over time.
Why do I need to connect my accounts before accessing the platform?
Linking your accounts is how we check you’re eligible to use the Pipe platform. By syncing with your systems, we’re able to assess your business and provide you with your initial bid price and trading limit.
What if I’m having trouble connecting my accounts?
We’re here to help, and we can even work with custom systems too! Please contact us.
How long is the process, from signing up to getting paid?
After your accounts are synced, our approval process typically only takes a few hours, but can take up to 48 hours. Once approved, log in to your dashboard, view your available contracts, and select those you want to trade for upfront cash. Once you approve the transaction, the transfer to your bank account is instant.
What kind of companies get approved to use Pipe?
We work with companies of all sizes from $100k to $100M+ ARR, bootstrapped to publicly traded. We look for a history of solid financial performance along with predictable cash flow and customer metrics (e.g. churn, revenue retention).
Is there a personal guarantee?
No, Pipe does not require any personal guarantees.
Is Pipe a loan or merchant cash advance?
No, Pipe is different; it's not a loan, merchant cash advance or revenue based financing product. Your contracts are fully tradable assets, we provide the platform for you to trade them with investors for upfront capital – no debt or dilution.
How often can I access funds from new or additional contracts?
You can trade as many contracts as you like and as often as you like within the total trading limit provided to you. This limit is automatically reassessed every week and can increase based on your growth and trading history with Pipe.
What happens if a contract that I’ve traded churns?
If a customer churns before the 12 month period that you traded, you have two options. You can rebate the capital you received upfront on a prorated basis for the churned period with no penalty or fees. Or, Pipe can auto-swap another contract to cover the rebate of the churned customer. You can see the exact payment schedule in real-time via your Pipe dashboard.
How does the payment and withdrawal process work?
Pipe automatically deposits the cash from investors into your account the same business day that you make the trade. Then, Pipe withdraws the payments each month once your customers pay you and distributes the funds to the investors.
We’ll let you know about each transaction through the Pipe platform and by email.
Can I receive more than 12 months of value for a contract?
Depending on your business, it’s possible to trade multiple years of contract value. If you have multi-year contracts, please contact us. Let’s talk!
How do I report the cash flow received from Pipe in company financial statements?
We recommend working with your professional financial or tax advisors. Depending on their specific accounting policy and the timeframe of the traded contracts, most Pipe users:
Book the cash received as cash (asset side) and a short term liability (liabilities side). When the payments related to traded contracts are debited you lower the liabilities balance and book the prorated discount as an interest expense below the line - so it does not impact revenue, gross profit or EBITDA.
The cash received upfront through Pipe does not accelerate revenue recognition. For more clarity, we recommend you get in touch with your financial or tax advisor in order to make an informed decision for your business.