"Turn your MRR into ARR" -Pipe
Recently discovered what appears to be an incredibly unique (and much needed) financing model, where investors essentially buy your future cashflows at a discount (not equity OR debt). Curious if anyone is using Pipe (or similar)?
https://alexdanco.com/2020/07/28/its-not-debt-its-better-an-interview-with-harry-hurst-of-pipe/
(Also see @csallen's excellent post on financing options for Indies https://www.indiehackers.com/post/indie-doesn-t-mean-bootstrapped-anymore-a88300c012)
Trending on Indie Hackers
Bookmarked.
Conditions are quite specific for this to work: low churn and high number of monthly subscriptions that don't convert easily to annual subscriptions.
The basic idea behind Pipe's model is that companies can sell their future subscription-based revenues to investors, who in turn receive a discounted price for those revenues. This allows companies to access capital without taking on debt or diluting their ownership through equity financing. It's a creative way to monetize anticipated future income streams.
Since my knowledge is not up-to-date beyond September 2021, I recommend checking the latest news and industry sources to find out if Pipe's model has gained traction or if there are other similar platforms that have emerged since then. You might want to look for recent articles, press releases, or discussions in relevant financial and startup communities to get the most current information about the adoption and success of this financing model.