Entertainment revenues are soaring. However, content creators and rights owners often don’t see their earnings for years.
Aiming to change this, the U.S. trading platform for recurring revenues Pipe has acquired the media and entertainment financing company founded by the U.K. producer Wayne Marc Godfrey, Purely Capital. It has now launched a new media and entertainment division on the platform to help producers, rights owners, and distributors drive immediate upfront revenue from their long-term licensing contracts from investment-grade streaming services and broadcasters, including Amazon, Netflix, and Disney.
The acquisition is a further step in the Miami-based startup’s mission to be the trading platform for any company with recurring revenues, regardless of industry, that’s looking to fund its growth on its own terms, without restrictive debt or dilution.
With the acquisition of Purely, Pipe’s institutional investors will bid on producers’ long-dated revenue streams, providing up-front capital, and will be paid back over the course of the license period. This lets producers bridge funding gaps and deliver vital and immediate cash flow to creatives and rights holders. Content producers and distributors now no longer need to liaise with the accounts departments of major global businesses or wait years for the funds to kick start their next production or acquisition.
Wayne Marc Godfrey, founder and CEO of Purely Capital, has assumed the role of general manager of Pipe’s Media & Entertainment Division. Godfrey said: “I’ve been passionate about finding new ways to help creators with their entertainment financing needs and long believed that the access to the financing needed an overhaul in order to turbo-charge creators. Technology is the best solution for this. It drives nearly every other aspect of the entertainment industry, from how content is produced, to how it is distributed and consumed, and it only makes sense to bring finance into the digital age through the incredible platform that Pipe has built.”