This new-to-Miami company just got investments from the founders of Reddit, Salesforce and Dell
What do the founders of Reddit and Salesforce and Michael Dell have in common?
Each just invested in Pipe, a new-to-Miami company that hopes to change the way recurring payments are bought and sold.
On Tuesday, Pipe announced it had raised $50 million from an all-star investor lineup that includes Reddit’s Alexis Ohanian, Salesforce’s Marc Benioff, and Michael
Dell’s MSD Capital.
Others in the syndicate include Shopify, Slack, HubSpot, Okta, Chamath Palihapitiya, Republic and Palantir co-founder Joe Lonsdale. The round is being led by Siemens’ Next47 global venture firm, and Raptor, a Bostonbased financial firm with offices South of Fifth in Miami Beach. Individual investment amounts and Pipe’s valuation were not disclosed.
While firms traditionally sell equity or take on debt to fund expansions, Pipe allows them to sell cash flows. For instance, a gym could take its monthly income from members’ subscriptions and put them up for auction on Pipe’s platform.
Pipe co-founder Harry Hurst, a Brit by birth who moved to Miami from Los Angeles, says Pipe is building “the NASDAQ of revenue.” He moved to Miami at the end of 2020 and continues to like what he sees.
“What we’re getting here is strong network effects, similar to the experience in San Francisco even if it’s not as many people,” he said. “The people that are here care so much about building this place up, everyone seems to be going out of their way to push forward. It makes the network effects here really strong.”
Palihapitiya, founder and CEO of Social Capital, said in a statement: “Pipe is leveling the playing field for companies in the capital markets. By taking the underlying contracts that generate recurring revenue streams and making them tradable for the first time, Pipe has unlocked a multitrillion dollar asset class, revenue.”
For now, many in the Pipe team work remotely across different parts of
the globe. Pipe maintains office space in Wynwood and just hired a chief of staff for the area.