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PIPE Sources Private Investment In Public Equities
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We 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?

        PIPE financing 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?

        Because PIPE financing 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.

         
          Advantages of PIPE financing

         1. PIPES are good investments for investors in low valued public companies in addition the stock is usually bought at discount
             which can be from 10% to 25%.

         2. There is more  liquidity to sell stock in public companies than in a private company.

 Disadvantages of a venture fund investing in PIPES.

        1. Investors in a private company can more easily gain a seat on the board of a private company than on a Public company.

        2. Investors  work closer with management in a private company than a public company.

        3. Investors have more control with private companies. 

        4. Stock of a public company fluctuates with the market while a private company grows with  a more fundamental valuation.