We know that growing a company can feel like a constant juggling act: from increasing sales and leading a team to prioritizing product roadmaps and keeping customers happy. Founders are often forced to withdraw from building their business and consider the numbers behind their daily activities in order to raise funds, which can be a serious distraction.
The good news is that the world of alternative finance is evolving day by day. Founders have more and more opportunities to access capital, which gives them time to focus on higher-impact work. This fits well with our mission at HubSpot, which is focused on helping companies grow in ways that don’t sacrifice customer satisfaction or the culture that a team has worked so hard to build.
For this reason, HubSpot Ventures is excited to announce our investment in pipe, a company that is changing the way companies access capital and that shares our mission to help companies grow on their terms.
Founders Harry Hurst, Josh Mangel and Zain Allarakhia founded Pipe with the idea that recurring sources of income are a fortune in and of themselves. In the past, there was no two-way platform connecting companies with monthly or quarterly recurring income to investors who could buy that income upfront for their annual value.
Pipe integrates with a company’s banking, payment and accounting systems to rate a company almost instantly without disrupting existing workflows or customer relationships. The product automatically tracks revenue streams and once approved, companies have access to the Pipe Trading Platform to view real-time bids for their full annual value.
They have attracted buy-side attendees who are vetted institutional investors who offer to buy monthly and quarterly paid recurring income at a small discount to their annual value, unlocking an entirely new asset class. For businesses, this means founders can now conveniently access low-cost, non-dilutive funding without the disadvantages of traditional debt or the distraction of raising growth capital.
We were drawn to Pipe’s bold vision of being the go-to place for companies seeking convenient, low-cost capital, as well as their unique positioning to leverage ecosystem partnerships to fuel their growth. The entire Pipe team is on a mission to change the game of how companies like HubSpot’s customers access capital, and HubSpot Ventures is honored to be part of their journey.
Find out more about Pipe here and more about HubSpot Ventures here.