NVCA Member Spotlight: TCV

Tell us about your firm. What makes TCV different?

CEOs and Founders tell us how TCV stands out for them: the depth of our knowledge in their particular industry and technology. When we identify a compelling technology trend, we take the time to thoroughly understand the underlying drivers, business model, and competitive environment. Having a developed perspective means we can have much more meaningful conversations about a company’s business and growth opportunities.


Where did the firm’s name come from?

We were founded in 1995 and were originally named Technology Crossover Ventures. “Crossover” means that we’re equally comfortable making both private and public investments, and that we help companies evolve from private to public ownership. Many CEOs appreciate a firm who can be a capital partner at multiple stages of their company’s evolution. For example, we invested multiple times in Netflix as a private company, and continued to support them as an investor after their IPO. Our original investment in the company was 20 years ago, and we continue to be investors today. Over the past 24 years, we’ve had more than 60 IPOs in our portfolio and we bring that experience to every new investment.  

What defines your portfolio?

We look to partner with companies that have already established a leadership position in their market and are looking to succeed at an even greater scale. This typically means that a company has been growing for several years – with a history of delighting customers, an economic model that is reflective of the value they provide, and an opportunity to scale the business in the future.

How is the firm different today than when you first started?

Today’s technology market is much bigger than it was in 1995, and today TCV is also much bigger than in 1995. During the past 24 years, we’ve invested in hundreds of companies and evaluated thousands more, so our knowledge base, experience, and network has expanded dramatically. Because of that, we’re in a better position today to help companies scale smarter and faster.

Why is TCV a part of NVCA?

We are a collaborative firm, so being part of our own industry association is a natural fit. TCV was a founding member of the NVCA Growth Equity Group (GEG). Through our direct involvement on NVCA committees and task forces, we have witnessed first-hand how the NVCA works as an advocate for entrepreneurs as well as investors.

Tell us about the current VC landscape in your geography/region.

We have offices in Menlo Park, NYC, and London. While our geographic focus has generally been focused on companies headquartered in North America and Europe, most of our portfolio companies are – or are seeking to be – global leaders regardless of where “home base” is. Today, executives are building great companies everywhere, not just in the traditional technology hubs like the Bay Area, Boston, or New York. So we’re increasingly focused on finding the best companies regardless of where they are located.

What’s ahead for your firm in 2019?

Looking outward, we see more great technology companies and talented entrepreneurs than ever before. We recently began investing out of TCV X, a $3 billion fund, and are excited about the portfolio we’re assembling for that fund. Looking inward, we’re focused on making TCV an even better platform for the world’s best technology investors. We continue to grow our organization and provide a compelling career path for investors who can partner with the world’s best technology companies and deliver exceptional returns for our Limited Partners.

Describe your firm’s culture in 5 words or less

“Helping others succeed.” Internally, this means each of us are accountable for the success of the entire TCV team, and each of us are expected to actively support our colleagues. Externally, we all have the ability – and responsibility – to bring the capabilities of the entire firm to our portfolio companies and give them the best TCV has to offer.

About TCV

Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. Since inception, TCV has invested over $10 billion in leading technology companies and has helped guide CEOs through more than 115 IPOs and strategic acquisitions. TCV’s investments include Airbnb, AxiomSL, Dollar Shave Club, EmbanetCompass, ExactTarget, Facebook, Fandango, GoDaddy, LinkedIn, Netflix, Rent the Runway, Splunk, Spotify, Varsity Tutors, and Zillow. TCV is headquartered in Menlo Park, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, visit www.tcv.com.

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The views and opinions expressed in the post above are that of the author and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). This post is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified above, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this document, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.

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TCV Makes $200 Million Investment in Unified Retail Planning Pioneer RELEX Solutions

HELSINKI & MENLO PARK, Calif.–RELEX Solutions, a leading provider of unified retail planning solutions, today announced that TCV has made a $200 million minority investment in the company. TCV is one of the largest providers of capital to growth-stage private and public companies in the technology industry and has backed industry-leading companies, including Airbnb, Facebook, Netflix, Splunk, Spotify, WorldRemit and Zillow.

RELEX provides an end-to-end retail planning solution enabling companies to improve their competitiveness through accurate forecasting and replenishment, localized assortments, profitable use of space and optimized workforce planning. RELEX has consistently achieved 50 percent year on year growth and attracted leading brands across the globe including Coop Denmark, Franprix, MediaMarkt, Morrisons, PartyCity, Rossmann and WHSmith.

RELEX will use the funding to continue to fuel its successful growth. The company’s three founders, Mikko Kärkkäinen, Johanna Småros and Michael Falck, see the additional funding as a means of fulfilling their vision of changing the world of retail planning. The founders will stay in their senior management roles, remain significant shareholders and will continue to set the strategy and direction for the Company. RELEX’s existing investor Summit Partners will retain an equity stake in the business and will continue to hold a seat on the RELEX board of directors.

“The development of retail and supply chain planning has been held back by siloed organizations and limitations in how technologies integrate,” comments RELEX’s CEO Mikko Kärkkäinen. “Our vision is to change how the field works by driving a more responsive unified planning process. We are already off to a good start — now we will increase our speed by accelerating our product development ambitions, hiring more tech talent and investing further into the development of our organization as well as further expanding our retail-specific machine learning and AI capabilities that complement our core data processing platform.”

TCV’s General Partner John Doran says: “We seek to partner with businesses and management teams that are poised to grow to dominate global markets in their sectors. We are impressed by RELEX’s modern, highly flexible and cloud-based software, as well as its exceptional data processing performance. RELEX has very high customer satisfaction with customers benefitting from inventory and waste reduction, improved stock availability, more efficient goods handling and less time spent on ordering. We are aligned with the founders’ vision for RELEX and look forward to supporting the management team.”

“With a robust product and a keen focus on delivering ROI to customers, RELEX has built a significant customer base across numerous retail segments and geographies. We are thrilled to continue our partnership with RELEX and delighted to welcome TCV,” adds Han Sikkens, a Managing Director with Summit Partners.

About RELEX

RELEX Solutions is dedicated to helping retail businesses improve their competitiveness through localized assortments, profitable use of retail space, accurate forecasting and replenishment, and optimized workforce planning. Our SaaS solutions deliver quick return on investment and can be used independently or jointly for unified retail planning, enabling cross-functional optimization of retail’s core processes: merchandising, supply chain and store operations. RELEX Solutions is trusted by leading brands including WHSmith, Morrisons, AO.com, Coop Denmark and Rossmann, and has offices across North America and Europe. For more information go to: www.relexsolutions.com

About TCV

Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. Since inception, TCV has invested over $10 billion in leading technology companies and has helped guide CEOs through more than 115 IPOs and strategic acquisitions. TCV’s investments include Airbnb, Altiris, AxiomSL, Believe, Dollar Shave Club, EmbanetCompass, EtQ, ExactTarget, Expedia, Facebook, Fandango, GoDaddy, HomeAway, LinkedIn, Netflix, OSIsoft, Rent the Runway, Sitecore, Splunk, Sportradar, Spotify, TourRadar, Varsity Tutors, WorldRemit and Zillow. TCV is headquartered in Menlo Park, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, visit https://www.tcv.com/.

Contacts

Alexandra Sevelius
Head of Marketing and Communications, RELEX Solutions
Phone: +358 45 674 4949
Email: alexandra.sevelius@relexsolutions.com

Katja Gagen
Head of Marketing, TCV
Phone: +1415 690 6689
Email: kgagen@tcv.com


TCV Promotes Nari Ansari to General Partner

We are delighted to announce the promotion of Nari Ansari to General Partner.

Nari joined TCV in 2006 and has played an integral role in the firm’s B2B investing practices and our collective efforts to accelerate growth at our portfolio companies. Since our inception in 1995, we have been committed to helping entrepreneurs become market leaders, and Nari’s deep understanding of technology, his connections with category leaders, and his ability to uncover exceptional opportunities and partner with talented management teams reflect the value the TCV team strives to bring to CEOs.

Nari Ansari

Nari focuses on investments in the software, fintech, healthcare IT, and tech/data-enabled services sectors. He currently serves on the board of directors at HireVue, OneSource Virtual, and Watermark and also works closely with Avalara (NYSE: AVLR), AxiomSLPayoneer, and Varsity Tutors. Prior investments include EmbanetCompass (acquired by Pearson) and Merkle (acquired by Dentsu). Before TCV, Nari was with McKinsey & Company in the San Francisco office, where he focused on assisting clients in the software, storage, and semiconductor sectors. Nari received his M.S. and B.S. in Management Science & Engineering (MS&E) from Stanford University’s School of Engineering.

We are delighted to acknowledge Nari’s outstanding contributions to the firm to date and we look forward to his continued success at TCV for many years to come. Congratulations to Nari on his promotion.

The General Partners of TCV

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The companies identified above are not necessarily representative of all TCV investments and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit http://www.tcv.com/portfolio-list/. For additional important disclaimers regarding this post, please see “Informational Purposes Only” in the Terms of Use for TCV’s website.


Woody Marshall on The Twenty Minute VC!

Check out Harry Stebbing’s latest podcast with TCV General Partner Woody Marshall.

 

 

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The statements, views, and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the speakers and disclaims any responsibility therefor. This interview is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified are not necessarily representative of all TCV investments and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies. For additional important disclaimers, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


The Guts and Glory of Category Creation

Customer Success is an established concept these days. Harvard Business Review has written about it. There are how-to guides online, and “Customer Success” even has its own Wikipedia page. Customer Success Manager positions, are among the fastest growing in the titles in the US. Customer Success is definitely a “thing” now.

The rise of Customer Success didn’t happen organically. Nick Mehta and the rest of the Gainsight team put the Customer Success category on the map through a deliberate and inspired effort.

In this Q&A, TCV GP David Yuan and Gainsight CEO Nick Mehta share lessons on the pros and cons, and the key success drivers of building an entirely new category of enterprise software.

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David Yuan: Let’s start with the basics. What is Customer Success, and what made you think it was a big enough problem space in which you could create a large company?

Nick Mehta: Most companies today either already have or are transitioning to a subscription-based business model, so that means retaining and providing value to your existing customers is more important than ever. That’s where Customer Success comes in—when you’re proactively engaging with customers, you’re able to stay ahead of customer churn and even discover other opportunities to provide more value and upsell. And you know all of that ends up increasing renewal rates and ARR. It’s really cool to see more and more businesses recognizing its value.

David Yuan: And why did you think it deserved its own category? You could have fit in a number of existing categories. Why try to create your own?

Nick Mehta: Yeah, Customer Success has been confused with customer support, customer service, professional services, or account management, but really, it’s a mash-up of those functions. Early on we didn’t know what to call it. Honestly, if you said “Customer Success Manager” to somebody back then, nobody would have any idea what you were talking about. But we knew we were looking at a new discipline for the next generation of businesses—something that’s at the intersection of customer support, service, customer analytics, customer machine learning, etc. They do share some similarities, but the fundamental shift is going from reactive (waiting for the phone call) to proactive (owning the customer’s outcome).

We could have attached ourselves to a category like account management and become a boring old company that’s somehow related to customer support. Many people actually tried to push us into those types of categories. Fortunately, we stuck to our gut because we knew none of those were a fit.

David Yuan:  To be honest, category creation is a little bit a of a flashback to the 1990’s when Ariba and i2 spent gobs of money making procurement and supply chain sexy. Hmm, must have been an interesting discussion with investors…

Nick Mehta: Yeah, people didn’t like it. Not only because of the potential expense with creating awareness, but also because they thought Customer Success was too much of a niche. That putting ourselves in the category would box us in.

David Yuan: Were they wrong?

Nick Mehta: Yes and no. It was certainly an obscure area, but we truly believed it could get big. So we went down that path and became very passionate about building the Customer Success company—we decided to go all in.

David Yuan: So how did you define scope? Define it tightly and you have 100% market share and no TAM, define it broadly and you have big TAM and you compete against everyone. In picking scope you get to pick who you compete with today and potential in the future, as well as who may view you as a strategic acquisition. Was this all in the plans, how intentional was your scope?

Nick Mehta: Really good question and we still wrestle with it. I think we embraced the concept early on of focusing on a very specific market (subscription) and persona (Customer Success). Many people said “your TAM will be limited” because of this. But the reality is that that market and persona have grown radically. So I think the lesson is there is a tradeoff to focus but it’s less of a tradeoff if the “niche” has a big tailwind behind it.

David Yuan: And how did you actually put on a name on the category. Customer Success actually feels really nature–simple and non-technical, yet distinctive.

Nick Mehta: We actually had a lot of debate about naming it because there were existing categories that we could have slotted into. Friends of the company suggested we call it “customer artificial intelligence.” Others told us we should call it “customer insights” or “customer machine learning.” But none of those fit for our vision.

We noticed Salesforce had a team of “Customer Success Managers” that had like 80 people in it and were starting to hire more, and when we saw this new job and description it made sense to us. There was also a small community of folks who met in online forums and around local offices in the Bay Area who really resonated with this Customer Success message.

David Yuan: It’s one thing to put a category name out there—most companies attempt to do that, but most are unsuccessful. How did you turn a Gainsight term into the category label?

Nick Mehta: We said to ourselves that we were going to create and really own the industry. We facilitated the creation of a community. With their help, we created best practices. We described what a Customer Success Manager does, how you pay them, and who they report to. We even published a book about the entire discipline. And we’re still helping define roles and titles based on the trends we’re seeing.

At first we wanted to do what a lot of enterprise software companies do: host a conference with our customers. The problem was that we didn’t have any customers, so a conference would have been depressing!  So instead of doing a company event, we decided to do an industry event. We focused on Customer Success Management, not our company per se. We said, let’s connect with other players in this still-young industry. We called the event “Pulse.” It was the most important thing we ever did as a company. When we sent out invites, we thought we’d get maybe 50 people to attend. Instead, 300 showed up the first year. Just to show you how fast this industry has grown, this year, our sixth year, we had over 5,000 people show up.

We’re not that big of a company, but our conference brand—Pulse—has become very big. We even expanded globally. We have a conference in London and we’re planning to continue that, and we’re hosting our first Pulse in Australia later this year.

David Yuan: Why do you think Pulse was so successful?

Nick Mehta: In order to create a category, we needed to create a community, and Pulse helped do just that. Fundamentally, in a new profession, people want to meet others “like them.” So Pulse has become in some ways like eHarmony for Customer Success.

David Yuan: Is it as expensive as it sounds?

Nick Mehta: Yeah, don’t do this if you’re bootstrapping. I don’t think it’d be possible since it’s not cheap. We raised $156 million in venture capital from investors who believed we could create this new marketplace. We were fortunate to receive their support because it allowed us to really distance ourselves from the little competition we had.

David Yuan: You’ve cultivated this community, so now what?

Nick Mehta: We try to put ourselves in the shoes of the people in the Pulse community. The terms “thought leadership” and “content marketing” have often been cheapened into thinly-veiled advertisement and we tried to change that. We strived to focus on the issues on the minds of people in Customer Success – from compensation to org models to career paths. We built a job board and an online university to help serve the career needs of our community.  At the end of the day, it’s fundamentally about the people.

David Yuan: How do you hire in an industry that’s so new?

Nick Mehta: Trying and failing. That’s the challenge. There is no playbook or existing job description to follow. So in the early days, we really focused on our value of “Shoshin” (Beginner’s Mind) – people that were creative and willing to learn.

David Yuan: You’ve said that you don’t sweat the competition. Why not?

Nick Mehta: In a new market, it’s not about the competition. It’s about creating the market. Our competition is inertia and ignorance.

David Yuan: Why don’t you have more competition?

Nick Mehta: In some new markets, the “friction” to get started is very high. In our example, you need to build a complex product AND a new profession!

David Yuan: You’ve put a lot of attention on your company’s culture. What have you done and why is it important?

Nick Mehta: When you’re creating a category, your culture is doubly important – it’s the framework for your company AND for your community. One of our core values is Childlike Joy, which basically means we want people to embrace their inner kid and bring the kid in you to work. We really lean into our community with that. We’ve done all kinds of fun things. We wrote a children’s storybook for CS professionals to explain to their kids what they do at work. We also do a lot of things with music, like create a Customer Success version of a Taylor Swift song, a rap song, a musical, and even carpool karaoke with Aaron Levie from Box and Keith Krach from Docusign. We also had Vanilla Ice at one of our Pulse conferences. Actually, there was a time that if you googled Gainsight, it literally listed our company as a musical artist in the hip-hop/rap genre. #lifegoal

David Yuan: Ha! I’ll have to check it out. Vanilla Ice, that’s when you know you’ve made it. You’ve come a long way from ‘nerding’ out at Harvard, my man!

Nick Mehta: Yeah!

David Yuan: Awesome, thanks Nick. Really proud of what you’re doing at Gainsight and appreciate your sharing some of your learnings!

Nick Mehta: Awesome! Thank you for having me.

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The views and opinions expressed in the transcript above are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). This transcript is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The companies discussed above are not necessarily TCV portfolio companies and are not necessarily representative of any TCV investments. For additional important disclaimers regarding this document, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.

 

 


Developing Narrative to Compel Action and Drive Results

nar·ra·tive

noun

  1. A spoken or written account of connected events; a story.

 What separates companies that move quickly towards a common goal from those that struggle to find unity? Why is it that some teams can routinely find a second, third, or fourth gear of execution? How do people who start with divergent objectives find common ground? Perhaps most importantly, why are some leaders successfully plug-and-play no matter what technical problem, cultural issue, or market challenge they are tasked with addressing?

In my last post on “Hiring for Leaders”, I talked about how you can both screen for and cultivate leadership qualities as your company scales. These qualities include taking positions, creating environments where multiple perspectives are acknowledged, and being adaptable. In this post I’ll build on that framework to discuss narrative – a critically important concept that is talked about often but still remains confusing for many people in business.

 

Why Is Narrative So Important?

During my time at Facebook and Pinterest, I noticed one element that drove successful outcomes: the connection between people and company objectives. This connection can take different forms: intuitively understanding the why of what people were tasked with, linking personal goals with company goals, creating less friction with other teams, and being resilient in the face of obstacles. The differentiator in all of this was the construction and delivery of a narrative.

Narrative creates the ability to connect people to your company and your company mission and drive collective action. The corollary to this deceptively simple statement is that narrative is not one thing – it’s not just a story. Narrative binds individuals to a living set of company attributes.

The following tenets are core to creating a compelling narrative.

 

Establish Clear Mission and Vision Statements

 You can think about the mission and vision as the why and the how. Both are critical to any organization, large or small, because they become the scaffolding for how teams construct their roadmaps and how leadership talks about them.

At Pinterest, the mission was to help people discover and do the things that they love. As our technology advanced and our customers engaged with it more fully, our vision of how Pinterest could change the world also changed. This taught me that while the vision of a future outcome may not stay the same, the mission – the why – should remain stable. It’s the foundation for how people and teams answer the “Why are we doing this?” questions that naturally arise. Changing the mission can create confusion about priorities.

Make sure every team creates a mission and vision statement for the work that they do. You may call it a scope doc, a PRD, MRD, or something else entirely. But if the mission doesn’t answer why people are working on something, and the vision doesn’t show how that work changes things for customers and the company, it’s difficult for people to understand why and how their work is helping the company achieve its objectives.

 

Develop Long-Term Roadmaps

A roadmap is a narrative about where you’re going and what happens along the way. Push your teams to create three-year roadmaps. Acknowledge that the value in the exercise is not the accuracy with which teams can predict the future, but rather the exercise itself.

Teams with a roadmap for the future end up moving faster because they have already envisioned a journey in the process of creating the roadmap. They’re not disoriented when the real road turns or twists, because they already foresaw and prepared for some of them – and anticipated that there might be a few surprises along the way. That in turn alleviates the level of oversight and explanation that leaders need to provide, because their teams are advancing within a larger, more longitudinal comfort zone.

In creating the roadmap, aim to resolve it to a vision statement. This should be a 1+1=3 exercise where individual functions intersect and combine to create an even more powerful outcome. The company vision should be a leading indicator of what teams should strive to accomplish.

A good way of thinking about this at the team level or even division level is to break out into thematic areas and assign varying levels of confidence in the work. Those confidence levels will decrease the further you get out into the future.

Even if the technology you envision doesn’t exist, writing down the roadmap is a helpful exercise to plotting out an initial path.

 

Measure Everything

Everything is measurable, but not everything can be measured in the same way. Create space for teams to define their metrics so that their output can be measured in ways that are meaningful. These metrics naturally generate narratives about how to meet or exceed them. They become a source of ongoing conversation within teams and between teams: Do we have the right metrics for meeting company objectives? Should we adjust them for technology or customer behavior? Do our metrics mesh with our mission and vision?

When these conversations take place, people feel naturally connected to the company and its goals. This process is so powerful that it’s essential to make sure that all the team-level metrics ladder up to company-level objectives. You don’t want people embracing their metrics (and their roadmap) and then arriving someplace the company did not want them to go.

You also need to ensure that team roadmaps do not collide and create conflict. If they do, reflect on each team independently and try to assess how it moves the company forward towards its top-level goals. If one team comes out on top, talk to the other team in the conflict about how they could adjust their roadmap and still achieve their goals and the company’s goals.

Know that there will always be trade-offs to make, and that your job as a leader is to create the narrative that keeps teams informed, aligned, and excited.

 

Create Cross-Functional Narrative Forums

Often as companies grow quickly, the first thing to go out the window is inter-team communication on strategy and goals. This can lead to misalignments, political posturing regarding resources, and management attrition. A great way to prevent this is to create regular forums for your leadership team to sit together and explain to one another what they are doing and why. You’re not asking them to justify their existence or run their numbers. You’re asking them to tell everyone else a narrative about their mission, vision and roadmap, and how the journey is progressing.

Smart leaders will bring a narrative that is tightly aligned with what they hear from their teams. It also gives the narrative “legs” for traveling across the entire enterprise – something that is otherwise rare.

Getting team-level narratives elevated to the leadership level, across functions, accomplishes a number of positive outcomes. First, it creates empathy among and within the leadership team about other team members’ goals, challenges and objectives. During resourcing conflicts, you want leadership team members to be able to advocate just as empathically for another team as they would for their own.

Second, it forces understanding. Anytime you have to tell a good story, you have to understand that story far better than the people you are delivering it to. The requirement to share your team’s story with other leaders forces you to master that narrative. Detailed work has to be distilled down to essentials. Technical complexity has to become clarity. Acronyms disappear, replaced by meaningful, memorable terms. Just the process of preparing a narrative about your team can help you spot work that is not truly aligned with company objectives.

Third, delivering cross-function narratives establishes trust at the inter-team level. Putting leaders in a position to explain to their teams why other teams are doing what they are, or why a trade-off decision went against them, establishes an authentic authority.

Story Time

The most successful teams have leaders that can weave a story using the foundations described above and connect it at various altitudes throughout the company. Driving board alignment around a strategic shift isn’t that different than getting your ops teams to the same place. It’s about creating shared understanding that drives people’s internal connection to the company’s goals.

Metrics, technologies and quantitative goals are important for any business to succeed. But without a narrative that makes people own them, they’re just components of a machine without a soul.

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Jonathan Shottan is an Executive-in-Residence at TCV.

The views and opinions expressed in the blog post above are that of the author and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). This blog post is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified above, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this document, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


Peloton Announces $550M In Series F Funding Led By TCV

NEW YORKAug. 3, 2018 — Peloton, the global fitness technology company, today announced a $550 million Series F financing round; capital that will enable it to continue to innovate aggressively and to expand into more international markets. The round is led by TCV, one of the world’s largest technology growth equity firms. Nearly all of Peloton’s existing institutional investors, including Tiger Global, True Ventures, Wellington Management, Fidelity (FMRCo), NBCUniversal, Kleiner Perkins and Balyasny participated in this round, joined by new investors, including Felix Capital, Winslow Capital and other mutual fund partners.

Jay Hoag, Founding General Partner of TCV, who also serves on the board of Netflix, Electronic Arts, Zillow, and other prominent technology companies, will join the Peloton Board of Directors. He joins TCV Venture Partner Erik Blachford, who has been on Peloton’s board since 2015.

“We are truly honored to partner with TCV and with Jay Hoag personally,” said John Foley, founder and CEO of Peloton. “TCV’s reputation, experience, and involvement in businesses like Netflix, Spotify and Facebook will be invaluable as we build Peloton into one of the most unique and influential global consumer product and media companies of our day.”

“We look for companies that offer their consumers a great value proposition, have engaged and delighted customers, and are led by visionary CEOs who have built a world-class management team,” said TCV’s Founding General Partner Jay Hoag. “We found all of these characteristics in Peloton and look forward to working with John and the entire team on their journey to revolutionize the home fitness category.”

The $550M Series F round brings the total equity raised by Peloton to nearly $1B since its inception, and positions Peloton to take full advantage of the growing global trend of instructor-led fitness classes moving into the home.

Since its last round of funding, Peloton has seen rapid growth across several key areas and is preparing to launch several new initiatives, including the following:

  • Global Expansion: This fall, the Peloton Bike will launch in the UK and Canada, marking the brand’s first new markets outside the US.
  • Retail Presence: Peloton plans to open at least 20 new retail showrooms in the US, UK and Canada by early 2019, bringing its total number of locations to more than 60 worldwide.
  • Peloton Tread: The company will launch its highly-anticipated second product, the Peloton Tread, this fall. Hundreds of running, walking, bootcamp and strength classes have already been produced in Peloton’s Tread Studio, which opened in New York’s West Village in May 2018.
  • Peloton Digital: Peloton recently introduced a new digital membership that offers over 10,000 live and on-demand, instructor-led classes across several fitness categories, such as cycling, running, walking, bootcamp, strength, stretching and yoga, for under $20/month.
  • Real Estate Footprint: Peloton announced plans to open a 25,000+ square foot campus in Plano, TX, which will serve as its member support hub, and Peloton Studios, a 35,000+ square foot, state-of-the-art flagship studio complex at Brookfield’s Manhattan West development in New York City. This new fitness facility will house Peloton’s broadcast and production operations and multiple studios from which thousands of group fitness classes will be hosted and live streamed for the Peloton Bike, Peloton Tread and Peloton Digital.

J.P. Morgan served as the sole placement agent to Peloton on the transaction.

The financing will be used for general corporate purposes, including providing liquidity to certain existing shareholders, and is scheduled to close in the third calendar quarter, subject to customary closing conditions and regulatory approvals.

About Peloton

Founded in 2012, Peloton is reinventing fitness by bringing live and on-demand boutique-style studio classes to the convenience and comfort of your own home. Our immersive fitness content, taught by Peloton’s roster of elite instructors, features real-time motivation and curated playlists of your favorite artists. The Peloton experience can be accessed through the Peloton Bike, the Peloton Tread, or Peloton Digital, an iOS app that offers an all-access pass to a full slate of fitness offerings, anytime, anywhere. Peloton is changing the way people get fit through a comprehensive and socially connected experience that makes every workout both efficient and addictive. The company has a growing number of retail showrooms across the US and, starting this fall, will launch in the UK and Canada. For more information, visit www.onepeloton.com.

About TCV

Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. Since inception, TCV has invested over $10 billion in leading technology companies and has helped guide CEOs through more than 115 IPOs and strategic acquisitions. Investments include Airbnb, Altiris, AxiomSL, Believe Digital, Dollar Shave Club, EtQ, ExactTarget, Expedia, Facebook, Fandango, GoDaddy, HomeAway, LinkedIn, Netflix, Rent the Runway, Sitecore, Splunk, Spotify, TourRadar, Varsity Tutors, and Zillow. TCV is headquartered in Menlo Park, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, visit www.tcv.com.

Media Contacts: 

Jessica Kleiman, (646) 829-1633, jkleiman@onepeloton.com 

Katja Gagen, (415) 690-6689, kgagen@tcv.com

SOURCE Peloton

Related Links

http://www.onepeloton.com


tastytrade, Inc. Raises $20 Million in New Funding

CHICAGO — tastytrade, Inc., the award-winning, innovative financial media company and parent to financial subsidiaries, announced today $20 million in new funding from TCV. The funding will be used to continue to challenge the traditional financial models and products currently offered to retail, self-directed investors.

The funding follows the company’s 2017 expansion of launching tastyworks, a high-speed technology brokerage firm with low fees and capped commissions. In 2018, the team created an investment advisory initiative called Quiet Foundation based on data-driven research, which provides unique risk analysis of any investment portfolio held at any firm. tastytrade continues to level the playing field by formulating new trading vehicles appropriately sized for retail investors.

“tastytrade remains focused on fighting for and empowering the everyday investor, providing free and engaging video content that empowers investors with actionable information they can apply every day,” said Kristi Ross, co-CEO and President of tastytrade, Inc. “Research-based content, trading technology, and the tastyworks’ brokerage are just the base for what we’re building. The overall tastytrade vision encompasses an offering that goes much deeper than most large institutions are willing to go.”

Tom Sosnoff, co-CEO and Chairman of tastytrade, Inc. added, “If you’re going to change the world, it starts with changing the way people think about strategic active investing. TCV has been a long-term supporter of our vision and our mission, initially with thinkorswim in May 2004, and now with their continued investment in tastytrade.”

TCV is a leading, Silicon Valley-based provider of growth capital to private and public technology companies, that has deployed over $1.5 billion in the fintech sector. “TCV’s mission is to invest in exceptional management teams who are reshaping industries and are innovators willing to disrupt even their own business models,” said Jake Reynolds, general partner at TCV. “We’re supporting a team that we believe has and can continue to transform the way self-directed investors interact with trading technology, financial media and new products.”

To learn more about tastytrade’s financial and investment strategies, visit www.tastytrade.com and the tastyworks brokerage offering, visit www.tastyworks.com.

About tastytrade, Inc.

tastytrade is one of the most-watched online financial networks, engaging investors and traders across 165 countries with 8 hours of daily, live, cost-free and commercial free programming with almost 100 million hours viewed. tastytrade offers over 50 original segments for new and seasoned veteran traders. tastytrade’s research-based content teaches a logical, mechanical approach to investing and identifying opportunities based on probability and volatility. Investors are continually challenged with financial math, humor and new market perspectives. tastytrade is also the parent company to tastyworks, a brokerage firm creating and leading a financial revolution for the do-it-yourself investor and to Quiet Foundation, a data science-driven, fee-free investment advisory service. tastytrade and its companies focus on empowering the individual investor through content, technology and know-how.

About TCV

Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. Since inception, TCV has invested over $10 billion in leading technology companies and has helped guide CEOs through more than 115 IPOs and strategic acquisitions. TCV’s investments include Airbnb, Avalara, AxiomSL, Dollar Shave Club, Envestnet, EtQ, ExactTarget, Expedia, FinancialForce, GoDaddy, HomeAway, LinkedIn, MarketAxess, Netflix, OSIsoft, Payoneer, RiskMetrics, Sitecore, Spotify, thinkorswim, Webroot, Xero, and Zillow. TCV is headquartered in Menlo Park, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, visit https://www.tcv.com/.

Contacts

Influence Consulting Group
Fran Del Valle
212-717-5499
917-922-5653
fran@influencecentral.com
or
TCV
Katja Gagen
415-690-6689
kgagen@tcv.com


Digital Measures Joins Watermark To Advance Educational Intelligence Solutions For Higher Education

NEW YORKJune 27, 2018 — Today, Watermark announced that Digital Measures, the leading provider of a web-based faculty activity reporting solution, joined the Watermark family. With this addition, Watermark becomes the market leader in outcomes assessment, accreditation management, and faculty activity reporting solutions to help colleges and universities streamline core institutional processes while capturing and using better data to drive improvements at all levels of the institution.

Digital Measures is a pioneer in the field of faculty activity reporting for higher education. Since 1999, Digital Measures has partnered with 3 of the 5 largest U.S. universities to achieve reporting success. Working closely with over 350 partner institutions and more than 400,000 faculty members, the company has gained a deep understanding of faculty needs, as well as the complexities of faculty activity reporting. Digital Measures was driven by a mission to help faculty more easily and efficiently document their teaching, research, and service activities and track progress for review processes, while simplifying inefficient reporting processes for administrators.

With a streamlined, centralized approach for capturing and reporting this information, the company’s flagship product, Activity Insight, and its Workflow Module have helped institutions more effectively leverage faculty activities and accomplishments and helped faculty prepare for annual performance, promotion, and tenure reviews.

“We deeply value the experience Digital Measures has in understanding faculty activity reporting processes at institutions,” said Kevin Michielsen, CEO of Watermark. “That kind of experience is invaluable and aligns well with our mission of helping institutions use better data to improve learning and institutional quality.”

“We understand that teaching and learning take place and are captured in many different areas and systems across campus. Being able to measure only a part of that picture is insufficient for an institution. By combining our experience with that of Digital Measures, we’re bringing together a more comprehensive set of solutions that better support and provide members of the higher ed community with the educational intelligence needed to improve outcomes.”

Matt Bartel, CEO and Founder of Digital Measures, commented, “We are excited to join the Watermark family and look forward to strengthening our commitment to support faculty. With the opportunity to draw feedback from a client base of over 1,400 institutions worldwide, we’re eager to contribute to Watermark’s vision for an integrated educational intelligence system that empowers administrators, faculty, and students with better-connected data to make evidence-based decisions.”

The Watermark team is excited to begin working with the Digital Measures team. “We believe Matt is an innovator in this space and recognize the company’s deep commitment to supporting faculty,” Michielsen said. “Digital Measures will play a key role as we work together toward this vision.”

The Largest Assessment and Faculty Activity Reporting Solutions Provider in the Industry.

In 2017, the three largest providers of ePortfolio and assessment management solutions for higher education –Taskstream, Tk20, and LiveText – joined forces to become what is now Watermark. With the addition of Digital Measures, Watermark now has over 65 years of combined experience developing software for higher education, supporting over 1,400 institutions across the globe. As one company, employees will be dedicated to serving this growing user community with innovative solutions and world-class support services that empower institutions with better data to make improvements at all levels.

“Thanks to Watermark’s rapid growth over the last year and half, we’re seeing a significant increase in the number of colleges and universities who look to Watermark for technology solutions to improve learning outcomes and institutional effectiveness,” said Nari Ansari, Principal at TCV – Watermark’s majority investor. “We believe Digital Measures will further strengthen Watermark’s position and accelerate work toward a vision for an educational intelligence system.”

Terms of the transaction are not disclosed. Tyton Partners acted as exclusive financial adviser to Digital Measures and Kramer Levin Naftalis & Frankel LLP and Godfrey & Kahn, S.C. served as legal counsel.

To learn more, visit www.watermarkinsights.com.

About Watermark™
Watermark’s mission is to put better data into the hands of administrators, faculty, and learners everywhere in order to empower them to connect information and gain insights into learning which will drive meaningful improvements. Through its innovative educational intelligence platform, Watermark supports institutions in developing an intentional approach to learning and development based on data they can trust. For more information, visit www.watermarkinsights.com.

About Digital Measures
Digital Measures seeks to empower universities to succeed at a higher level by helping them leverage faculty teaching, research and service information more effectively. The company’s flagship product, Activity Insight, simplifies faculty activity data collection and reporting, and its Workflow Module brings the same efficiency to faculty reviews and more. Digital Measures had partnered with three of the five largest U.S. universities to achieve reporting success. Since its inception, the company has fostered a culture of innovation focused on best-practice technology use and guidance for simplifying institutional processes. For more information, visit www.digitalmeasures.com.

Contact:
Victoria Guzzo
Director of Corporate Communications
708.250.4622
vguzzo@watermarkinsights.com

SOURCE Watermark

RELATED LINKS

www.watermarkinsights.com


TourRadar, #1 Online Travel Agency for Multi-Day Tours, Announces US$50M Series C Funding Round Led by TCV

VIENNA & TORONTO & BRISBANE, Australia — TourRadar, the largest OTA in the multi-day touring market, announced today a US$50m Series C, marking the largest tech funding in Austria in 2018. The round is led by TCV with existing investors Cherry Ventures, Endeit Capital, Hoxton Ventures and Speedinvest. TCV is one of the largest providers of capital to growth-stage private and public companies in the technology industry backing industry-leading companies including companies including Airbnb, Expedia, HomeAway, Netflix, SiteMinder, Spotify, and Zillow.

In connection with the funding, Erik Blachford, a venture partner at TCV and previously President and CEO of IAC Travel, has joined TourRadar’s supervisory board.

TourRadar intends to use the funding to expand its team globally and will invest in the technology platform to provide a personalized user experience for customers in new and existing source markets.

TourRadar markets multi-day tour and river cruising experiences from over 600 operators globally serving well-known and hundreds of specialty operators that otherwise rely on local agents. TourRadar supports operator partners through instant bookability, tour review functionality and campaigns including World Touring Day.

Founded in 2010, TourRadar has grown rapidly by providing consumers with easy access to the fast-growing multi-day tour category, with a total addressable market value estimated at $55 billion. Travelers of all ages are increasingly seeking authentic, off-the-beaten-path experiences when they travel, and TourRadar offers more than 25,000 tours in 200 countries on its platform.

TourRadar was founded by brothers Travis and Shawn Pittman, both native Australians. Travis, an engineer, is TourRadar’s Vienna-based CEO. Shawn, the company’s CFO, came from a successful career in investing. Both are avid travelers with many countries on their travel résumés, and a vision of connecting people to life-enriching travel experiences through multi-day touring.

“The experience and knowledge in the online travel sector that Erik Blachford and TCV bring to the table is exactly what we were looking for as we embark on this exciting next chapter at TourRadar,” said Travis Pittman, CEO and co-founder at TourRadar. “This stage will well and truly bring our vision to life and we’re excited to do this with their guidance.”

“Multi-day tours are the last frontier in online travel,” said Erik Blachford, a venture partner at TCV and former CEO at Expedia. “TourRadar has staked a claim, and I am looking forward to helping Travis and the team realize their vision.”

“We are thrilled to partner with Travis and the TourRadar team,” said John Doran, general partner at TCV. “We have been continually impressed with their unrivalled passion for travel and their vision to inspire the global travel community with the most convenient way to access the broadest choice of authentic multi-day tours across the world. We are delighted that Erik Blachford will join the board and look forward to supporting the entire team as they continue to build their business.”

For further information head to www.tourradar.com/press or contact:

About TourRadar

Based in Vienna (Austria) with service centers in Brisbane and Toronto, TourRadar is the world’s largest online travel agency for multi-day tours. For more information visit https://www.tourradar.com. In 2017, TourRadar was named one of the top three startups in Austria by Trend Magazine. TourRadar is looking for talent to join their team: https://www.tourradar.com/careers.

About TCV

Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. Since inception, TCV has invested over $10 billion in leading technology companies and has helped guide CEOs through more than 115 IPOs and strategic acquisitions. TCV’s investments include Airbnb, Altiris, AxiomSL, Dollar Shave Club, EmbanetCompass, EtQ, ExactTarget, Expedia, Facebook, Fandango, GoDaddy, HomeAway, LinkedIn, Netflix, OSIsoft, Rent the Runway, Sitecore, Splunk, Spotify, Varsity Tutors, and Zillow. TCV is headquartered in Menlo Park, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, visit https://www.tcv.com/.

Contacts

TourRadar
Katie Stanwyck, +1-416-660-4659
katie@tourradar.com
or
TCV
Katja Gagen, +1 415-690-6689
kgagen@tcv.com