Segment Acquisition, Valuation, Funding & Investors

Segment was acquired by Twilio for $3.2B in October 2020, a 15.9x multiple on $201M of revenue.

Segment acquisition price

$3.2B

Acquired by Twilio · Oct 2020

Segment revenue at acquisition

$201M

Last twelve months · Oct 2020

Segment revenue multiple at acquisition

15.9x

EV/Revenue · Oct 2020

Cumulative funding Segment raised

$284M

across 6 funding rounds

Segment Overview

About Segment

Segment is a customer data platform headquartered in San Francisco, California. Founded in 2011 and acquired by Twilio in 2020, it collects first-party data from websites and apps, unifying it for routing to over 300 analytics, marketing, and warehouse destinations. Enterprises like Levi's, Pandora, and Delivery Hero use Segment to streamline data pipelines, reduce engineering costs, and enable personalized customer experiences across channels.


Founded

2011

HQ

United StatesSan Francisco, CA

Status

Acquired

Customer focus

B2B

Revenue model

Subscription

Revenue

$201M (Oct 2020)

Valuation

$1.5B (Apr 2019)

Segment Acquisition

Segment was acquired by Twilio for $3.2B on 12 October 2020.

The acquisition price implies a 15.9x revenue multiple on $201M of revenue.

Before the acquisition Segment had raised $284M across 6 funding rounds.

Segment is a customer data platform (CDP) that helps organizations consolidate customer data from multiple sources and activate those insights across various business systems for marketing, sales, customer service, and analytics applications. Twilio acquired Segment for $3.2 billion in an all-stock transaction to expand beyond its core communications API business into customer data management, creating a combined platform that unifies data capabilities with Twilio's communications infrastructure. The deal, announced in October 2020 and completed in Q4 2020, was Twilio's largest acquisition at that time and represented a strategic move to own the full customer engagement lifecycle from data ingestion through activation across all channels. At the time of acquisition, Segment was valued at $1.5 billion in its previous funding round, making the $3.2 billion price tag a significant premium that reflected strong market demand for customer data platforms in the SaaS ecosystem.

Segment acquisition details
AcquirerDateTypePriceEV/Revenue
12 Oct 2020Strategic M&A$3.2B15.9x

Segment Valuation

Segment is currently valued at $1.5B, based on its Series D in April 2019.

The $175M round was led by Accel, GV and Meritech Capital Partners, with participation from Y Combinator, Greycroft, Sapphire Ventures, Thrive Capital and Headline.

Segment valuation by funding round

Segment valuation by funding round
DateStageValuation
Apr 2019Series D$1.5B

Segment Funding History

Segment has raised a total of $284M across 6 funding rounds.

Segment's first fundraising round was a $600K seed round in January 2013. The most recent completed round was a $175M Series D in April 2019.

Segment funding rounds

Segment funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Apr 2019Series DAccel (lead); GV (lead); Meritech Capital Partners (lead); Y Combinator; Greycroft; Sapphire Ventures; Thrive Capital; Headline$175M$1.5B-
Jul 2017Series CGV (lead); Y Combinator (lead); SV Angel; New Enterprise Associates; Thrive Capital; Accel; Headline$64M-Segment is a customer data platform (CDP) that integrates and manages customer data to provide real-time insights and personalized experiences for businesses. The company raised $64 million in its Series C funding round on July 13, 2017, led by Google Ventures (GV) and Y Combinator, with participation from Accel, Headline, New Enterprise Associates, SV Angel, and Thrive Capital. This followed earlier rounds including a $27M Series B in October 2015 led by Thrive Capital to strengthen infrastructure and support growth. The Series C funding was aimed at expanding Segment's global footprint, enhancing product offerings, and building advanced CDP features to accelerate enterprise adoption. Prior to this, Segment had secured seed and Series A funding to develop its platform, test market fit, and onboard customers. Total funding across rounds reached approximately $283.9M by 2017, culminating in a $175M Series D in April 2019 at a $1.5 billion valuation led by Accel, GV, and Meritech Capital Partners to open offices, grow headcount, and evolve its customer data infrastructure. Segment was later acquired by Twilio in October 2020 for between $3 billion and $4 billion.
Oct 2015Series BThrive Capital (lead); Kleiner Perkins; Jon Winkelried; Accel; Headline$27M-Segment, a customer data platform founded in 2011, announced a $27 million Series B funding round on October 9, 2015, led by Thrive Capital, with participation from Accel Partners, Kleiner Perkins Caufield & Byers, and Jon Winkelried. The company, a Y Combinator-backed startup, provides a centralized API for collecting user interaction data and routing it to over 160 third-party tools and databases, reducing engineering overhead and enabling flexible data stacks for businesses. At the time, Segment served 4,000 active customers—defined as those with at least three connections—such as Conde Nast, Bonobos, and HotelTonight, with enterprise customers averaging 11 integrations. Segment reported strong growth metrics around the round: processing 50 billion API calls per month, up dramatically as it handled in one day what it did in a month the prior year; its user base had doubled in the past year, and revenue tripled over the preceding eight months. Customers on average sent data to five services, amid rising adoption of analytics tools across the top 100,000 websites. The company planned to use the funds to double its team from 50 to 100 employees, primarily in engineering, product, and design, expand integrations to data warehouses like Postgres and MySQL beyond Amazon Redshift, and capture new data types from brand interactions outside products. Will Gaybrick, CFO of Stripe and General Partner at Thrive Capital, joined Segment's board as part of the investment. This followed a prior $15 million round led by Accel. Segment had recently attracted over 30 partners to build their own integrations, reflecting accelerating demand in the customer data infrastructure space.
Oct 2014Series AAccel (lead); Kleiner Perkins; Headline$15M--
Oct 2014SeedHeadline (lead)$2M--
Jan 2013SeedGeneral Catalyst; New Enterprise Associates; Headline$600K--

Who has invested in Segment?

13 investors have backed Segment across its funding rounds, including Headline, Accel, Thrive Capital, Y Combinator, New Enterprise Associates and GV.

Lead investors include Accel, GV, Meritech Capital Partners, Y Combinator, Thrive Capital and 1 other investor.


Segment Investors

Investors in Segment by funding rounds participated
InvestorHQRoundsRoleFirst check
HeadlineUnited StatesSan Francisco, CA6LeadJan 2013
AccelUnited StatesPalo Alto, CA4LeadOct 2014
Thrive CapitalUnited StatesNew York City, NY3LeadOct 2015
Kleiner PerkinsUnited StatesSan Francisco, CA2ParticipantOct 2014
Y CombinatorUnited StatesSan Francisco, CA2LeadJul 2017
GVUnited StatesSan Francisco, CA2LeadJul 2017
New Enterprise AssociatesUnited StatesSan Francisco, CA2ParticipantJan 2013
General CatalystUnited StatesSan Francisco, CA1ParticipantJan 2013
SV AngelUnited StatesSan Francisco, CA1ParticipantJul 2017
GreycroftUnited StatesNew York City, NY1ParticipantApr 2019
Sapphire VenturesUnited StatesAustin, TX1ParticipantApr 2019

This data is available for Pro users. Sign up to see all 13 Segment investors.

Start Free Trial

Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples

Sign up to see data on 350K+ funding rounds and disclosed revenue and EBITDA valuation multiples, from seed, through growth stage, to pre-IPO.

Start Free Trial

Investments by Segment

Segment has invested in 6 companies to date.

Latest investment by Segment was on June 30th 2022. Segment invested in EMARKETING SOLUTIONS, LLC in their $200K Seed round.


Latest Investments by Segment

EMARKETING SOLUTIONS, LLC
Dream Business System
U22
WEBZELLA LTD
Description
EMARKETING SOLUTIONS, LLC is a digital marketing resource hub offering tools, software reviews, and educational content for online businesses seeking growth strategies.
-
U22 is a live streaming platform for K-pop concerts, esports tournaments, and virtual events using multi-angle HD feeds and interactive chat. Headquartered in Seoul, South Korea, it streams events like BTS fan meetings and League of Legends matches to global audiences. Launched in 2020, U22 partners with HYBE Labels and Kakao for pay-per-view access on web and mobile.
WEBZELLA LTD is a provider of digital marketing and e-learning solutions through https://webzella.com. The company delivers tools for online course creation, marketing automation, SEO, and performance analytics to educators and businesses.
HQ CountryUnited StatesUnited StatesUkraineEgypt
HQ City
Los Angeles, CA
-
Kharkiv
Cairo
Deal Date30 Jun 20223 Jun 202224 May 202230 Apr 2022
RoundSeedSeedSeedPre-seed
Raised$200K$600K$100K$100K
InvestorsZendesk; Stripe; Mixpanel; Twilio; Amazon Web ServicesAuth0; Zendesk; Stripe; Mixpanel; Twilio; Amazon Web Services; Notion CapitalMixpanel; Amazon Web ServicesStripe; Mixpanel; Twilio; Amazon Web Services; Notion Capital
Valuationundisclosedundisclosedundisclosedundisclosed
EV/Revenue
EV/EBITDA

This data is available for Pro users. Sign up to see all Segment investments and their VC round multiples.

Start Free Trial

Segment Competitors

Segment competitors include listed companies like Freshworks and Braze, and private ones like Hightouch, ActiveCampaign, Seismic and Nextiva.

Public and private companies comparable to Segment
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
HightouchUnited StatesSan Francisco, CAPrivate$70M-$2.8B-
FreshworksUnited StatesUnited StatesPublicly listed$839M$41M$3.3B2.9x
ActiveCampaignUnited StatesChicago, ILPrivate$165M-$3B18.2x
SeismicUnited StatesSan Diego, CAPrivate$250M-$3B12.0x
BrazeUnited StatesUnited StatesPublicly listed$738M($109M)$2.8B3.0x
NextivaUnited StatesPhoenix, AZPrivate$250M-$2.7B10.8x

Segment Public Comps

Segment is no longer listed, but its public comps include Freshworks, Dameng Database, Braze, Teradata, SoundHound, Lumine Group, Xunce Technology, Business-intelligence, Klaviyo and Transwarp.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Freshworks$839M$41M3.2x2.9x65.7x11.3x
Dameng Database$195M$84M15.3x12.5x35.5x27.6x
Braze$738M($109M)3.4x3.0x(23.2x)33.6x
Teradata$1.7B$285M1.4x1.5x8.4x5.3x
SoundHound$169M$19M14.6x11.3x132.5x(35.5x)
Lumine Group$766M$278M5.3x4.2x14.4x12.6x
Xunce Technology$192M($15M)21.3x13.4x(264.0x)415.8x
Business-intelligence$389M$54M6.6x5.9x47.7x-

This data is available for Pro users. Sign up to see all Segment competitors and their valuation data.

Start Free Trial

Common questions about Segment

When was Segment founded?Segment was founded in 2011.
Where is Segment headquartered?Segment is headquartered in San Francisco, CA, United States.
Is Segment publicly listed?No, Segment was acquired by Twilio in October 2020.
Who acquired Segment?Segment was acquired by Twilio in October 2020.
How much was Segment acquired for?Segment was acquired for $3.2B in October 2020, a 15.9x revenue multiple.
What is Segment's valuation?Segment was last valued at $1.5B in its Series D in April 2019.
How much funding has Segment raised?Segment has raised $284M across 6 funding rounds.
What was Segment's last funding round?Segment's last funding round was a $175M Series D in April 2019, led by Accel, GV and Meritech Capital Partners.
Who are Segment's investors?Segment's investors include Headline, Accel, Thrive Capital, Kleiner Perkins, Y Combinator, GV, New Enterprise Associates, General Catalyst, SV Angel, Greycroft and 3 others.
Which companies are comparable to Segment?Companies comparable to Segment include Hightouch, Freshworks, ActiveCampaign, Seismic, Braze and Nextiva.
How many companies has Segment invested in?Segment has invested in 6 companies, including EMARKETING SOLUTIONS, LLC, Dream Business System, U22, WEBZELLA LTD, Connect Plus10 LTD and Seven Magnum.
What was Segment's last investment?In June 2022, Segment invested in EMARKETING SOLUTIONS, LLC's $200K seed round alongside Zendesk, Stripe, Mixpanel and 2 other investors.

See companies similar to Segment

Start Your
Free Trial Today

Try Multiples for free for 3 days. Got questions or need a demo? Schedule a call with us below.

Start Trial