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Posted: 2020-07-28 9:07:04

It’s Not Debt, It’s Better: an Interview with Harry Hurst of Pipe

From Alex Danco at alexdanco.com
Originally published 2020 07 28
Founders can now sell the recurring revenue from a cohort of software customers, as an easily tradable asset, and fund their growth without taking dilution. There’s enormous demand for those kinds of cash flows, but up until today, founders haven’t been able to hook up to that demand.
HH: I have pretty unique insight here given we currently get anywhere from 30-50 software companies applying to trade on the Pipe platform every day. Based on the fact that most founders are builders, not CFOs, it’s a fair assumption that most founders aren’t naturally skilled capital allocators and so aren’t aware of all of the alternative methods large companies utilize to finance their businesses. What I see happening in B2B fintech is a sort of ‘consumerization’ of these previously unknown and unavailable methods of financing to the benefit of all founders, at all stages. 
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Tags:new assets class,founder,process knowledge,cash flow,software subscription,equity,software company,hh,investor,geographic network effects,Uncategorized