Pipe, a two-year-old startup that aims to be “Nasdaq for revenue,” today announced that it has hired former Stripe EIC Sid Orlando and former HubSpot chief strategy officer Brad Coffey to serve on its executive team.
The Miami-based fintech today also revealed its first expansion outside the United States with its entry into the UK market.
It’s been a good year for Pipe. This year the buzzy startup has raised $300 million in equity financing from multiple investors like Shopify, Slack, Okta, HubSpot., Marc Benioff’s Time Ventures, Alexis Ohanian’s Seven Seven Six, Chamath Palihapitiya, Mack Ventures, Fin VC, Greenspring Associates and Counterpoint Global (Morgan Stanley), among others.
Since its public launch in June 2020, over 8,000 companies have signed up to the pip trading platform. That’s more than double the reported “more than 4,000” it signed up at the time of the company’s last raise in May — a $250 million round that valued the company at $2 billion.
Orlando has left his role as editor-in-chief of fintech giant Stripe, where he worked for more than four years to lead content for Pipe. She was also previously the manager of curation and content at Kickstarter. Coffey left HubSpot — where he worked for more than 13 years and most recently served as Chief Strategy Officer for about 5 — to serve as Pipe’s Chief Customer Officer, where he joined Pipe. The initial launches will be responsible for the continued growth and expansion of the vertical beyond the market. mother-in-law. Coffey was one of HubSpot’s first employees and saw the company progress from being a publicly traded company with $1 million in ARR to $1 billion in annual recurring revenue.
CEOs Harry Hurst, Josh Mangel, and Zain Allarkhia founded Pipe in September 2019 with the mission of giving SaaS companies a way to grow their revenues, by connecting them with investors on a marketplace that can value the annual value of those contracts. to pay the discounted rate. (Pipe describes its buy-side participants as “a verified group of financial institutions and banks.”)
The platform aims to provide access to capital to companies with recurring revenue streams so that they do not dilute their ownership or be forced to take out loans by accepting external capital.
Pipe’s platform has evolved to offer non-dissolving capital even to non-SaaS companies. In fact, more than 50% of the companies using its platform today are non-SaaS companies, compared to 25% in May.
Notably, Coffey led HubSpot’s investment in Pipes last spring and thus became the first time he became acquainted with the company.
“When I first came across Pipe, I realized that they had an opportunity to be a company that not only transforms, but helped a generation of founders gain access to the growth capital they needed to grow.” Never had access to them before,” he wrote. An email to . “This was even more apparent when I led HubSpot’s investment in Pipe… where HubSpot provides software and education, and Pipe can provide capital. As I got to know the founders and team through that process, I realized this was an opportunity I didn’t want to miss and be a part of.”
Orlando expressed a similar sentiment about his decision to join the company.
“Pipe has such an interesting opportunity to revisit aspects of the funding landscape, providing founders with alternative financing options to grow and scale companies on their own terms,” he wrote via email. “It was undoubtedly a compelling mandate to be part of the initial team to build such an impressive product to market! I’m also impressed by Pipe’s team and mission, which is both humility and immense inspiration to leverage its ambitious vision to leverage the new asset class into serving greater flexibility, agency, equity and growth opportunities for founders and their teams. is to move forward. “
For Pipes Hearst, the new employees signal a new chapter for the company, which is growing rapidly.
“There are many days on the pipe where tens of millions [of dollars] Trading is done on a single day. Last time we talked there were tens of millions of dollars being traded every month [in May], he told . “And this is for a diverse set of customers and across different verticals. We are also increasingly helping to finance M&As. Growth has been explosive. ”
According to Hearst, the tradable annual recurring revenue (ARR) on the Pipe platform is over $2 billion and is trending towards $3 billion.
The company’s expansion in the United Kingdom is important because the region has a growing enterprise ecosystem, with capital almost unavailable to founders as it would give founders in the US pipe an alternative means of financing, believes Hearst. is.
“There are a lot of fundamentally healthy companies that don’t have access to funding, period,” he told . “That’s why we believe in the UK, the pipe will be incredibly impressive and that’s evidenced by what we’ve already seen.”
The move also represents a return to the CEO’s roots.
“I left the UK for the United States seven years ago because it provided the best funding environment to build my first technology company, and it’s extremely gratifying to bring those equal opportunities to emerge The ecosystem of technology companies in the UK,” he said. “if pipe exists” A decade ago and the company offered friendly financing options, I would never have left the UK… now, I am bringing it home and am really excited to be launching in the UK”
With the move, Pipe has opened a microhub in London and 10% of its 55-person team will be based there.