Tuesday, February 25, 2020

Pipe Picks Up $6M For SaaS Financing

A new, Los Angeles-based fintech startup, Pipe, said this morning that it has raised $6M in its seed funding round, to launch a new platform which offers up financing to subscription-based, software-as-a-service companies. The funding was led by Craft Ventures, and also included Fika Ventures, MaC Ventures, Naval Ravikant, WorkLife Ventures, Liquid2 and The Weekend Fund. The funding provides "instant cash advance" against the value of software subscriptions, allowing companies to receive the full annual value of their subscriptions immediately, rather than month-to-month. The company says its financing will enable companies to grow without additional costs to customers and without diluting their current cap table. Pipe is led by Harry Hurst, Josh Mangel, and Zain Allarakhia. Craft Ventures is the venture inevstment firm led by former PayPal executive David Sacks.