PIPE (Private Investment in Public Equity)

A PIPE, or Private Investment in Public Equity, is a financial arrangement where private investors buy shares directly from a publicly traded company, often at a discounted price. This allows companies to raise capital quickly without the lengthy process of a public offering. Investors, usually institutional or accredited individuals, gain ownership in the company and may benefit from potential future growth. PIPE transactions are typically faster and less costly than traditional fundraising methods and are used by companies for various purposes, such as funding operations, paying off debt, or making strategic investments.