Info on how Pipe works

Hi IndieHackers,

Question: I am interested in the concept pipe.com has where investors purchase your recurring annual revenue for a discount - I believe it is 95cents on the dollar now.

The concept intrigues me and I am thinking of applying such a concept in a different industry. Just to kick start my creative juices, does anyone know how investors arrive at the 95cents on the dollar? Do they have an interface where they see all the available contracts for purchase and they offer bid prices? Or is there another mechanism of how the discounted purchase price is arrived at for pipe.com?

I would appreciate any pointers here. Thanks!