Alternative finance startup Pipe hires Stripe and HubSpot executives, expands into UK
Pipe, a two-year-old startup that aims to be the “Nasdaq for Revenue,” announced today that it has recruited former Stripe EIC Sid Orlando and ex-HubSpot Chief Strategy Officer Brad Coffey to make part of its management team.
The Miami-based fintech also today revealed its first expansion outside of the US with its entry into the UK market.
It has been a good year for Pipe. The buzzy startup has raised $ 300 million in equity funding this year from a large number of investors, such as Shopify, Slack, Okta, HubSpot, TIME Ventures by Marc Benioff, Seven Seven Six by Alexis Ohanian, Chamath Palihapitiya, MaC Ventures, Fin VC, Greenspring Associates and Counterpoint Global (Morgan Stanley), among others.
Since its public launch in June 2020, more than 8,000 companies have registered on the Pipe trading platform. That’s double the reported “over 4,000” who had signed up when the company last raised in May – a $ 250 million round that valued the company at $ 2 billion.
Orlando left her post as editor-in-chief at fintech giant Stripe, where she worked for more than four years, to lead content for Pipe. She was also previously responsible for curation and content at Kickstarter. Coffey left HubSpot – where he worked for over 13 years and most recently served as Chief Strategy Officer for almost 5 years – to become Chief Customer Officer of Pipe, where he will be responsible for continued growth and expansion of vertical markets beyond the initial launch of Pipe. SaaS market. Coffey was one of HubSpot’s first employees and has seen the business grow from a startup with $ 1 million in ARR to a publicly traded company with $ 1 billion in annual recurring revenue.
CEO Harry Hurst, Josh Mangel and Zain Allarakhia founded Pipe in September 2019 with the mission of giving SaaS companies a way to get their income up front, pairing them with investors in a market that pays a reduced rate for the annual value of these contracts. (Pipe describes its buy-side participants as “a controlled group of financial institutions and banks.”)
The goal of the platform is to provide businesses with recurring income streams access to capital so that they don’t dilute their ownership by accepting external capital or be forced to take out loans.
Pipe’s platform has evolved to also offer non-dilutive capital to non-SaaS companies. Indeed, today, more than 50% of companies using its platform are non-SaaS companies, against 25% in May.
Notably, Coffey led HubSpot’s investment in Pipe last spring and that’s how he first got to know the company.
“When I first met Pipe, I realized that they had the opportunity to be a company that not only transforms itself, but also helps a generation of founders access the growth capital they do not have. ‘had never had large-scale access before,’ he wrote in an email to TechCrunch. “It was even more evident when I led HubSpot’s investment in Pipe … where HubSpot provides the software and training, and Pipe can provide the capital. As I got to know the founders and the team through this process, I realized that this was an opportunity I didn’t want to miss and should be part of.
Orlando expressed similar feelings around his decision to join the company.
“Pipe has such an intriguing opportunity to reconfigure aspects of the funding landscape, providing an alternative funding option for founders looking to grow and scale businesses on their own terms,” she wrote by e- mail. “Being part of the first team to create such an impactful product on the market was without a doubt a compelling mandate! I am also struck by Pipe’s team and mission, to pursue the ambitious vision of leveraging a new asset class with both humility and immense motivation, in the service of greater flexibility, an agency, equity and growth opportunities for the founders and their teams.
For Pipe’s Hurst, the new hires mark a new chapter for the company, which continues to grow at a rapid pace.
“There are many days on Pipe where tens of millions [of dollars] are traded in one day. Tens of millions of dollars were traded every month the last time we spoke [in May], he told TechCrunch. “And that’s across a diverse set of customers and different verticals. We are even increasingly helping to finance mergers and acquisitions. Growth has been explosive.
Tradable Annual Recurring Revenue (ARR) on the Pipe platform exceeds $ 2 billion and is trending towards $ 3 billion, according to Hurst.
The company’s expansion into the UK is important because, although the region has a growing venture capital ecosystem, capital is not as available to founders as it is in the United States. .
“There are a lot of fundamentally sound businesses out there that don’t have access to finance, period,” he told TechCrunch. “So we think that in the UK Pipe will have an incredible impact and that is demonstrated by what we have already seen.”
The move also represents a return to the CEO’s roots.
“I left the UK for the US seven years ago because it offered the best funding environment to build my first technology company, and it is extremely rewarding to bring these same opportunities to the burgeoning business ecosystem of UK technology companies, ”he said. “If Pipe existed ten years ago and I offered business-friendly financing options, I might never have left the UK …
With this move, Pipe has opened a microhub in London and 10% of its 55-person team will be based there.