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PIPE Sources Private Investment In Public Equities
HomeWe have more than 200 PIPE sources.
Having timely information, we can deliver a term sheet within a week Please email us at capital@bizfin or call us at 724-836-6827. $1,000,000 minimum financing
What is PIPE financing?
A PIPE is an investment by a private equity fund in a publicly traded company, usually at a discount.
Why should a public company consider a PIPE investment as a means of financing?
PIPE transactions generally take about 60 days. Some close within weeks.
Why should Venture Funds invest in PIPES?
Investing private capital in a small proven public companies can make more economic sense than investing in a private emerging start-up company. The realized return on the investment is usually short term plus often warrants are given the investors sweetners.
- PIPEs are good investments for investors in low valued public companies in addition the stock is usually bought at a discount which can range from 10% to 25%.
- There is more liquidity to sell stock in public companies than in a private company.
Disadvantages of a venture fund investing in PIPES.
- Investors in a private company can more easily gain a seat on the board of a private company than on a Public company.
- Investors work closer with management in a private company than a public company.
- Investors have more control with private companies.
For more information please contact Bizfin at 724-836-6827 or email us at capital@bizfin.com
- Stock of a public company fluctuates with the market while a private company grows with a more fundamental valuation.