Why Sapphire Ventures and Segment Are Excited to Partner
Today, we’re excited to announce our investment in Segment, a leading provider of customer data infrastructure. We’re thrilled to partner with CEO Peter Reinhardt and the rest of his team on their journey to building a Company of Consequence.
Segment provides technology to help companies ensure their customers have highly relevant, personalized experiences no matter where they interact. They do this by giving companies the ability to collect, unify, and connect their first-party data to hundreds of marketing, analytics, and data warehousing business tools.
Segment has built an elegant, yet powerful solution for one of the most acute problems businesses are facing: how to leverage siloed, first-party customer data to power a wide variety of use cases.
Peter was nice enough to discuss below why he chose to partner with Sapphire, but first, more on why we’re excited to help Segment scale.
Why Partner with Segment?
Rajeev Dham: VCs love referring to “pattern recognition.” Well, there’s no difference in this situation. At Sapphire, we feel we have been fortunate to partner with data & analytics businesses such as Alteryx, Looker, Reltio, ThoughtSpot, Alation, as well as business & marketing applications like ExactTarget, Outreach, and Pendo. As a result, we’ve gained a deep appreciation for the solutions that Segment delivers. There is a clear need for a single data infrastructure that enables better analytics, execution of customer intelligence applications, and consequently, a better customer experience.
In addition, given our experience with MuleSoft, we’ve seen how “middleware” — traditionally relegated as a second-class citizen to business applications — is actually crucially important within the stack. Segment has strategic real-estate that is oftentimes stickier than the applications they empower.
Big markets drive big businesses. Unlike very specific point solutions or software targeted at slices of the market (SMBs, vertical SaaS, B2B-only, etc.), we believe Segment addresses all businesses. Our customer diligence revealed that everyone ranging from Fortune 50 B2B enterprises to direct-to-consumer start-ups are leveraging Segment for their core data infrastructure. We believe Segment can be the next horizontal platform to power digital transformation initiatives for all companies.
Finally, one of our key learnings about successful software businesses is the ability for CEOs to tell the story in a way that inspires confidence from investors, employees and of course customers. This ability is oftentimes exhibited by charismatic, sales-driven CEOs, but we’ve found that charisma comes in all forms. Over the last several years, Peter inspired our confidence by showing he has a keen sense for the challenges his customers encounter with their customer data. Moreover, he can articulate the vision of what Segment is providing in an elegant manner, actually quite similar to the product itself. We believe his clarity of thought and conviction about his product positioning and vision, despite having the potential to be pulled in many directions, will propel Segment to further cement their industry leadership.
Why Partner with Sapphire Ventures?
Peter Reinhardt: We wanted to partner with Sapphire because we know how deeply engaged and committed they are to the success of their portfolio companies. They have an incredible track record helping some of the industry’s most important companies build and scale their businesses. Rajeev and team really took the time to understand our business and needs, well before any financing discussions took place. It was very clear to us that they always go the extra mile.
Building a Company of Consequence
We are thrilled to welcome Peter and Segment to the Sapphire family and can’t wait for the journey ahead!
Disclaimer: Nothing presented within this article is intended to constitute investment advice, and under no circumstances should any information provided herein be used or considered as an offer to sell or a solicitation of an offer to buy an interest in any investment fund managed by Sapphire Ventures. Information provided reflects Sapphire Ventures’ views as of a time, whereby such views are subject to change at any point and Sapphire Ventures shall not be obligated to provide notice of any change. Companies mentioned in this article are a representative sample of portfolio companies in which Sapphire Ventures has invested in which the author believes such companies fit the objective criteria stated in commentary, which do not reflect all investments made by Sapphire. A complete alphabetical list of Sapphire’s investments made by its direct growth investing funds is available here. Readers should not treat any opinion expressed on this article as a recommendations to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Various opinions presented in the article are based upon information the guest blogger consider reliable, but neither Sapphire nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. No assumptions should be made that investments listed above were or will be profitable. Due to various risks and uncertainties, actual events, results or the actual experience may differ materially from those reflected or contemplated in these statements. Nothing contained in this article may be relied upon as a guarantee or assurance as to the future success of any particular company. Past performance is not indicative of future results.