What can we help you with?
What is Pipe?
Pipe is the new way for SaaS companies to finance growth without equity dilution or venture debt. We give you instant access to cash for the full annual value of your monthly and quarterly subscriptions.
How does Pipe work?
Pipe syncs with your existing subscription management, accounting, and banking systems to underwrite your business. Once approved, our vetted investor partners make offers to buy your monthly and quarterly paid subscriptions for a discount to their annual value, at the most competitive market-clearing prices. It’s as if all of your monthly and quarterly customers paid you upfront!
Do I need to communicate to my customers that we’re using Pipe?
No. Pipe doesn’t disrupt the billing workflow or interfere with customer relationships. After you collect payments from your customers, they’re automatically sent to Pipe. Your customers don’t even know we exist!
Is Pipe right for my company?
Pipe is built for SaaS companies who have proven product-market fit and predictable customer retention metrics. The best way to see if Pipe is right for your business is to go through our simple sign up process, which takes just a few minutes.
Is Pipe available to companies based outside the US?
Yes, we work with foreign companies with a US subsidiary, and we’re launching in a number of international markets in the near future. 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. If you’re a foriegn company that would like to use Pipe today, we can help you set up a US subsidiary.
Does it cost anything to sign up?
No, there is no cost or commitment to go through onboarding and get approved to use Pipe.
How is the payout value per subscription determined?
The discount that investors are willing to buy your subscriptions for ranges based on the health of your business. However, they are significantly less than the discounts you may be offering on annual pre-paid contracts to your customers, with the added benefit of maintaining 100% of your ACV. The easiest way to view your discount range is to go through our commitment-free sign up and we’ll show you the market-clearing price for your subscriptions.
How is my trading limit determined?
Each company we work with is unique so trading limits vary from business to business. Once you start trading on the Pipe platform, we reevaluate your account on a weekly basis so your limit can scale with your business. Building up trading history is key to increasing your limit over time - limits can range from $25,000 to $100M.
Why do I need to connect my accounts before accessing the platform?
Linking your accounts is how we verify your eligibility to use the Pipe platform. By syncing with your existing subscription management/billing platform, accounting software, and bank accounts, we are able to underwrite your business and provide you with your discount range and trading limit. It’s also how we make payments to you once you’re onboarded.
What should I do if I’m having trouble connecting my accounts?
We’re so sorry to hear that. Whether you don’t see your account listed, or you have multiple bank accounts or subscription managers you want to connect, there’s always a fix and we’re here to help. Please contact us to get the help you need.
How long is the process, from signup to having the money in my account?
After your accounts are synced, our underwriting process typically takes 48 hours. Once approved, log in to your dashboard, view your available subscriptions, and select those you want to sell. We provide instant offers from investors on our platform, you approve the transaction, and the bank transfer is instantaneous.
What do you look for during the underwriting process?
In order to underwrite your business, we look for a history of solid financial performance, along with predictable cash flow and customer metrics (e.g. churn, revenue retention). That’s why we sync with your existing subscription management/billing, accounting, and banking systems – we need to have a holistic view of your business in order to underwrite it. We work with companies of all sizes, from $100k ARR to $100M+ ARR.
Is there a personal guarantee?
No. Pipe is not a loan and does not require any personal guarantees
How often can I access funds from new or additional subscriptions?
You can sell as many subscriptions as often as you like within the total trading limit provided as a result of our underwriting process. This limit is automatically reassessed at least every 30 days and can increase or decrease based on your business’s performance.
What happens if a subscription that I’ve sold churns?
If a subscriber churns before the 12 month period, you have two options. You can rebate the capital you received upfront on a prorated basis for the remaining period with no penalty or fees, or you can simply select a new subscription of equal or greater value to cover the rebate of the churned account. You can see the exact payment schedule in real-time in your Pipe dashboard.
How does the payment and withdrawal process work?
During the onboarding process, you sign our ACH authorization which allows us to both deposit and withdraw from your linked bank account. We will notify you through the Pipe platform and by email after each transaction.
Can I receive more than 12 months of value for a subscription?
Great question – and we’d love to chat about this with you. If you have multi-year contracts, please click here to get in touch.
How do I report the cash flow received from Pipe in company financial statements?
You should seek advice from your professional financial or tax advisors, but many Pipe customers, depending on their specific accounting policy and the time-frame of the sold subscriptions, either:
- Book the cash received against existing Accounts Receivables
- Book the cash received against Deferred Revenue/Pre-payments
The cash received upfront through Pipe does not accelerate revenue recognition. Again, please consult your financial or tax advisor in order to make an informed decision for your business.