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Segment Raises $27 Million Series B from Thrive Capital, Accel Partners

segment_logoSegment, the customer data hub, today announced $27 million in Series B investment, led by Thrive Capital with participation from existing investors Accel Partners, Kleiner Perkins Caufield & Byers, and Jon Winkelried, former president of Goldman Sachs. Following Accel’s $15 million investment last year, Segment plans to use the new funding to double the team from 50 to 100, add connections to popular data storage platforms, and capture new types of customer data beyond in-app behavior.

The engineering burden of collecting and managing data prevents tons of companies from actually using it to make better product and marketing decisions,” said Peter Reinhardt, CEO and co-founder of Segment. “That’s why engineers love Segment — our API empowers them to easily collect and structure their data, so teammates in product, marketing and business intelligence can flip a switch to push data to tools they need.”

Serving customers like Conde Nast, Bonobos and HotelTonight, Segment now processes 50 billion API calls per month. The company has doubled its user base in the past year, tripled its revenue in the past eight months, and now offers 160 integrations across 20 categories.

Bringing a new type of software to the market, Segment discovered that services for analytics, email, advertising, support, and more, run on the same data. However, companies waste massive engineering efforts to set them up, gather a complete set of customer data, and scrub it into a usable, consistent format.

Instead, Segment provides a centralized platform for collecting user interaction data and sending it out to more than 160 third-party tools and databases. Offering a single API for data tracking, Segment reduces engineering work, syncs consistent data across tools, and provides the flexibility to build a best-of-breed stack.

On average, Segment customers send data to 5 services, with enterprise customers utilizing an average of 11 partner applications. Similarly, the top 100,000 Alexa-ranked websites use 3 of these tools on average, and this number is growing. In the past few months, Segment has attracted more than 30 partners to build their own integrations for the platform.

With the Series B funding, Segment will develop new offerings for customers to query and build on their raw data, connecting to data warehousing services beyond Amazon Redshift such as Postgres, MySQL and more. In addition, Segment plans to collect new types of data, capturing experiences where customers interact with brands outside of their products.

Every online and mobile business should be using customer data to inform decisions and create personalized campaigns,” said Will Gaybrick, CFO at Stripe and General Partner at Thrive Capital. “Segment provides the infrastructure that makes centralizing and syndicating this data a seamless process. At the same time, it increases the fidelity and flexibility of your customer data no matter what tools you’re using to analyze, visualize or take actions with it.”

 

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