Financial Poise

PIPE Financing

  • June 13, 2022
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Private investment in public equity (PIPE). A PIPE is when an institutional or an accredited investor buys stock directly from a public company below market price.

Because they have less stringent regulatory requirements than public offerings, PIPEs save companies time and money and raise funds more quickly. The discounted price of PIPE shares means less capital for the company, and their issuance effectively dilutes the current stockholders’ stake.