FastPay

Sam predicts Pipe becomes a multi-billion-dollar company

Sam notes Pipe had raised $70M, that his media business uses the equivalent (FastPay) for millions in credit, and predicts Pipe will be a multi-billion-dollar company because software is a far bigger market than media. (Pipe later hit a ~$2B valuation in 2021.)

“And Pipe has raised $70 million in funding. They're kind of stupid because we use them and we have millions of dollars in credit from them, and we won't leave them because it's a wonderful service. But the reason why they're kind of stupid is because the market's a lot smaller, right, than software, and the numbers are a lot smaller, right? I think Pipe will be a multi-billion-dollar company.”

A Pipe/FastPay for freelancers: advance invoices for a 5% cut

The podcast's producer pitches an invoice-advance product for contractors: give freelancers their invoice amount now and take ~5% when the client eventually pays. Shaan notes he's heard this idea repeatedly and turns it into a question to the audience: why does this seemingly obvious idea keep failing?

“He's like, why doesn't a, a sort of fast pay or pipe exist for contractors? Like, I have my invoice, um, just gimme the money now. And then you wait to like, when the company pays, you take it and you take 5%. That's a big idea off the thing. And, uh, I've actually heard this idea a few times before of like, you know, my, my wife was a, in, you know, a consultant for, you know, and so she always got paid like this on a 30 or 60 day cycle.”

Steal thisBuild invoice financing for freelancers: pay their outstanding invoices instantly and collect a ~5% fee when the client pays.