TRENDING
  • Privacy Policy
  • Write For US
  • Contact Us
  • About Us
No Result
View All Result
  • Home
  • Business
  • Technology
  • Startups
  • Reviews
  • How To
  • Security
  • Devices
    • Smartphones
    • Tablets
    • TV
    • Wear
  • Internet
  • Marketing
  • Services
SUBSCRIBE
  • Home
  • Business
  • Technology
  • Startups
  • Reviews
  • How To
  • Security
  • Devices
    • Smartphones
    • Tablets
    • TV
    • Wear
  • Internet
  • Marketing
  • Services
No Result
View All Result
No Result
View All Result
Home Startups

As Pipe’s founding team departs, tensions rise over allegations • businesskinda.com

by Janice Allen
November 29, 2022
in Startups
0
As Pipe’s founding team departs, tensions rise over allegations • businesskinda.com
Share on FacebookShare on Twitter

On November 22, alternative finance startup Pipe announced its three co-founders step down from their executive positions and that a search for a new, “experienced” CEO had begun.

In an exclusive interview, co-founder and former co-CEO Harry Hurst told businesskinda.com that the trio were “0-1 builders, not large-scale operators.” He said the company’s sales grew year-over-year and the company had five years of catwalk.

However, finding the right successor can take some time. For starters, Pipe – which has been raised more than 300 million dollars of investors since inception in 2019 – has only one outside board member in Peter Ackerson, a general partner at Fin Capital who himself became a VC just three years ago. Hurst and fellow founders Josh Mangel and Zain Allarakhia are the only other directors on the board.

In fact, detractors seem determined to question the way the company is run. Since the publication of that article, several sources who wished to remain anonymous — including an investor who says he stopped investing in the startup in its early years — have said they have “heard” that Pipe has made about $80 million in loans. to one or several crypto mining companies. The outfit or outfits have since gone bankrupt and the $80 million is believed to have been fully written off, these individuals said.

When asked about the allegations, A spokesperson for the company told businesskinda.com Pipe has not made $80 million worth of loans to crypto mining companies and Pipe has not had to fully write off related receivables. Instead, she confirmed that Pipe has “given access to funding to crypto mining hosting companies” and said – when asked if Pipe lost each amount of money on loans to crypto mining entities – that as a private company, Pipe does not share the company’s financial data.

The startup declined to name its crypto mining-related clients, but Pipe specifically had one a public partnership with Compass Mininga now beleaguered crypto mining company it is reported to be facing his own share of the battle.

There are other grumbles. One source claimed that Hurst and the other two founders sold millions of dollars worth of their own stock in a secondary sale, a practice that became quite common among numerous young companies during the pandemic. (The founder of Hopin, also founded in 2019, reportedly owns shares worth at least $195 million.) When we asked Hurst last week how many investors had already let the co-founders off the table, he declined to answer.

A fintech investor also questioned the sophistication of Pipe’s technology. When asked if there was a related issue with Pipe’s underlying loans, the company’s spokesperson said: “While we’ve seen some delinquencies on the platform like many fintechs in this current macro environment, we don’t expect buy-side investors to suffer losses that haven’t been communicated to them yet or part of the greater risk profile presented by the company.”

Hurst apparently heard about the suspicion surrounding his company. In a Twitter thread last night he went on a rampage against ‘VCs and others who hate our company based on rumors. It’s pretty obvious that there are bad actors with their own agendas spreading BS with no regard for the people it harms. He also wrote, “As a leader, I will not let this noise distract us or undermine our team’s incredible hard work to achieve our mission of empowering businesses around the world to grow on their terms.”

Meanwhile, the search for the CEO continues. Indeed, Pipe’s spokesperson today echoed what the company said publicly last week, that “Jos [Mangel] is now interim CEO and Harry is still with the company in his new capacity as Vice Chairman. They both want Pipe to reach its ultimate potential and are committed to finding a new CEO, as reported and announced…”

Once Pipe’s new CEO is named, she added, that person will take Hurst’s place on the board.

As for who is helping with the search, she said the answer is that “many of Pipe’s stakeholders are part of the CEO search process, including senior management and investors.”

Image Credits: Twitter

In addition to Fin Capital, other VCs leading investments in Pipe on the part of their investment firms include Marlon Nichols, a general manager at MaC Venture Capital, and Ashton Newhall, a longtime investor at Greenspring Associates and now a partner at StepStone Group, who acquired Greenspring in September last year.

No one responded to requests for comment.

Another investor in Pipe, Matthew Cowan of Next47 Capital, told businesskinda.com he was “not allowed to comment.”

Other lenders in the company include Morgan Stanley’s Counterpoint Global, CreditEase FinTech Investment Fund, 3L, Japan’s SBI Investment, Marc Benioff, Alexis Ohanian’s Seven Seven Six, Republic and Craft Ventures, who ran the company $6 million seed funding in February 2020.

Meanwhile, one Shape-D signed by Pipe Senior Counsel Peter Chiaro to the US Securities and Exchange Commission in late September reveals that the company recently secured $7.12 million in debt funding, which could be seen as a positive alternative to the kind of highly structured internal round that many startups currently closing.

Pipe co-founder and chief business officer Michal Cieplinski, whose name was not present in the company’s announcement last week, was listed as Pipe’s “executive officer” in the filing, which declined to disclose its revenue range.

businesskinda.com’s weekly fintech newsletter, The Interchange, launched on May 1! Sign Up here to get it in your inbox.

We have a news tip or inside information on a topic covered? We’d love to hear from you. You can reach me at [email protected]. Or you can send us a message at [email protected]. If you prefer to remain anonymous, Click here to contact usincluding SecureDrop (instructions here) and various encrypted messaging apps.


Janice Allen
Janice Allen

Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.

ShareTweetPin

Related Posts

Entro raises $6 million for its end-to-end secrets protection solution
Startups

Entro raises $6 million for its end-to-end secrets protection solution

May 17, 2023
5 ways SaaS companies can accelerate their product-driven growth
Startups

5 ways SaaS companies can accelerate their product-driven growth

May 16, 2023
With a16z-backed Rooms.xyz you can build interactive 3D rooms and simple games in your browser
Startups

With a16z-backed Rooms.xyz you can build interactive 3D rooms and simple games in your browser

May 16, 2023
Together raises $20 million to build open source generative AI models
Startups

Together raises $20 million to build open source generative AI models

May 15, 2023
UK pension start Smart banks $95 million
Startups

UK pension start Smart banks $95 million

May 15, 2023
Everyone greets the Unicorn Kingdom?
Startups

Everyone greets the Unicorn Kingdom?

May 14, 2023
Next Post
Former Russian Krispy Kreme franchisee is the latest to start the rebranded operation

Former Russian Krispy Kreme franchisee is the latest to start the rebranded operation

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • 129 Followers
  • 952 Subscribers
  • 30 Followers

Recommended

How AI can kill your career or business

How AI can kill your career or business

April 1, 2023
Is Jack from Doctor Who gay?  – An exploration of evidence and implications – business kinda

Is Jack from Doctor Who gay? – An exploration of evidence and implications – business kinda

January 20, 2023
Is Big Brother’s Christmas Gay?  Examining the evidence and responses – business kinda

Is Big Brother’s Christmas Gay? Examining the evidence and responses – business kinda

January 17, 2023
This musician runs two seven-figure businesses – as the million dollar sole proprietorship continues to rise

This musician runs two seven-figure businesses – as the million dollar sole proprietorship continues to rise

August 1, 2022
Humble keeps excess inventory out of the Philippines’ landfills • businesskinda.com

Humble keeps excess inventory out of the Philippines’ landfills • businesskinda.com

November 8, 2022
Leandro Lo A Brazilian Jiu-jitsu Legend Was Shot Dead

Leandro Lo A Brazilian Jiu-jitsu Legend Was Shot Dead

August 8, 2022
  • Write For US
  • Privacy Policy
  • About Us
  • Contact Us

DISCLAIMER
We are the Simple News website that provide awareness & support to readers. If you find any news or article that belong's to you then contact us anytime, we will remove that things or give you best credit that help for your brand.
© 2022 businesskinda.com.

No Result
View All Result
  • Home
  • Reviews
  • How To
  • Write For US
  • Business
  • Marketing
  • Startups
  • Technology

@ Copyright businesskinda.com