RBF initially targeted the SaaS industry and D2C subscriptions, but has since expanded into industries where future revenue is easier to forecast due to recurring revenue and long-term contracts (such as video streaming services, various membership service models, and long-term property management contracts).
If you have stable sales every month, you can receive advance payments for sales six months to a year in the future using those future receivables, which allows you to invest in a variety of ways to put the market on a growth trajectory, such as purchasing inventory, running advertising campaigns, developing new products, and expanding overseas.
Annual contracts where you pay for a year in advance are not eligible for RBF because the customer has already paid upfront, but there is a market opportunity for RBF as companies are offering steep discounts in exchange for upfront payments, reducing sales.
Investors can invest in companies with poor future prospects, and if they are unable to recover their investments, they cannot have Pipe compensate them for their losses. At first glance, this system appears to hedge against risk, but losing investor confidence could put the company at risk of losing its existence.
Pipe provides investors with information to make decisions by "rating" companies' sales information before it is made public, which is key to the platform's credibility.
Currently, domestic RBFs only exist as players that take on the risk themselves, and since many of the capital partners are financial institutions, the screening criteria have become as strict as bank loans, making the model far removed from the true essence of RBF.
A system that is not influenced by capital partners can only be realized through a marketplace like Pipe. Currently, there is no marketplace model in Japan, and Pipe has a near-monopoly overseas.
Report format: PDF (3.5MB)
Original data: PowerPoint, 70 slides, A4 size