Zach Perret

Fintech went from a full-blown surge to a near standstill in just two years. At its peak, about 25 percent of all venture dollars were pouring into the category. By late 2022, that number had collapsed to almost zero. In this conversation, a16z General Partner David Haber and Plaid cofounder and CEO Zach Perret unpack what actually happened during that cycle and why the market is heating up again. We explore how the industry moved from the explosive growth of 2020 and 2021 into a deep freeze, and why we are now seeing real momentum return. We also dig into the forces reshaping fintech today: AI’s outsized impact on fraud and underwriting, incumbents finally embracing external software, the renewed importance of deposits, and the rise of embedded finance across entirely new categories. Zach shares how Plaid has navigated these shifts, what the company is building now, and how he sees the next phase of fintech taking shape.   Resources: Find Zach on X: https://x.com/zachperret Find David on X: https://x.com/dhaber   Stay Updated: If you enjoyed this episode, be sure to like, subscribe, and share with your friends! Find a16z on X: https://twitter.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711 Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see http://a16z.com/disclosures . Stay Updated: Find a16z on YouTube: YouTube Find a16z on X Find a16z on LinkedIn Listen to the a16z Show on Spotify Listen to the a16z Show on Apple Podcasts Follow our host: https://twitter.com/eriktorenberg Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Zach Perret

Co-Founder and CEO

Plaid

Zach Perret saw a fintech explosion coming—and built the rails before it arrived. On this week’s Grit, the Plaid co-founder and CEO retraces his path from building tools for developers to linking the world’s largest banks, and how a failed $5.3B acquisition by Visa became a launchpad. He unpacks the pressure of operating in a tightly regulated industry, why rebuilding trust after the deal collapse was harder than expected, and how Plaid is navigating the shift from startup to staple—while staying obsessed with the end user. Links: Connect with Zach X LinkedIn Connect with Joubin X LinkedIn Email: grit@kleinerperkins.com Learn more about Kleiner Perkins

Zach Perret

Co-Founder and CEO

Plaid

We sit down with Zach Perret, CEO of Plaid, to discuss the remarkable journey of Plaid and the broader fintech landscape over the past several years. Zach takes us blow-by-blow through journey of almost getting acquired by Visa, the challenges faced during the COVID-19 pandemic… which quickly reversed with ZIRP tailwinds, and how Plaid navigated the volatile market conditions to build a diversified business. We explore the company’s strategic pivots, including their expansion into analytics for fraud detection, alternative credit systems, and bank payments. If you’ve ever wondered “how do you turn from one simple product into a more durable business?” this episode is for you. Links: Come see Acquired LIVE at Radio City Music Hall! Sponsors: Sierra: https://bit.ly/acquiredsierra

Zach Perret

Co-Founder and CEO

Plaid

Zach Perret is the CEO and Co-Founder of Plaid, a technology platform reshaping financial services. To date, Zach has raised over $734M for Plaid from the likes of NEA, Spark, GV, Coatue and a16z, to name a few. Today, thousands of companies including the largest fintechs, several of the Fortune 500, and many of the largest banks use Plaid. In addition, Zach is also a Co-Founder of Mischief, an early-stage venture fund in San Francisco. In Today's Episode with Zach Perret We Discuss: 1. Founder Mode: Why "Founder Mode" will be the most dangerous blog post written in the last decade for founders? What is most misleading about it? What are "grinder problems"? Why does Zach believe that grinder problems are the best problems for startups to try and solve? Why does Zach believe that OKRs are BS and should be removed? What should be used instead? 2. Lessons from Raising $734M for Plaid: What is the worst advice that VCs give that most founders take? Why does Zach believe that angel investing is more distracting than helpful for founders to do? What are the pros of investing alongside running a company? Why does Zach encourage founders to raise money as infrequently as possible? What does this mean for the size and price of rounds Zach thinks we should see occur? 3. The $5BN Exit and the $13.4BN Round: Why did Zach turn down the $5BN exit to Visa? Was it the right choice? Does Zach regret raising at such a high price of $13.4BN when the exit did not happen? Would Zach sell the company today for $13.4BN if offered it? What did Zach not do that he wish he had done? What did he do that he wishes he had not done?

Zach Perret

Co-Founder and CEO

Plaid

This Week in Startups is brought to you by… Vanta. Compliance and security shouldn't be a deal-breaker for startups to win new business. Vanta makes it easy for companies to get a SOC 2 report fast. TWiST listeners can get $1,000 off for a limited time at vanta.com/twist. The Embroker Startup Insurance Program helps startups secure the most important types of insurance at a lower cost and with less hassle. Save up to 20% off of traditional insurance today at Embroker.com/twist. While you’re there, get an extra 10% off using offer code TWIST. Fount. Do you want access to the performance protocols that pro athletes and special ops use? With Fount, an elite military operator supercharges your focus, sleep, recovery, and longevity, all powered by your unique data. Want a true edge in work and life? Go to fount.bio/twist for $500 off. * Today’s show: Plaid CEO Zach Perret joins Jason to break down the behind-the-scenes details of Plaid’s canceled merger with Visa (1:21), Plaid’s origin story (16:44), tactics on growing a community within your early customer base (27:36), and more! * FOLLOW Zach: https://twitter.com/zachperret * Time stamps: (0:00) Jason welcomes Plaid CEO Zach Perret! (1:21) Plaid's canceled Visa merger, coming out the other side of a canceled acquisition stronger (11:30) Vanta - Get $1000 off your SOC 2 at https://vanta.com/twist (12:36) Zach breaks down Plaid's product and business (16:44) Plaid's origin story (26:08) Embroker - Use code TWIST to get an extra 10% off insurance at https://embroker.com/twist (27:36) Tactics for growing a community within your customer base (35:24) Competition, specifically from financial giants (38:58) Fount - Get $500 off an executive health coach at https://fount.bio/twist (40:28) FedNow, CBDCs, and the next evolution of payment rails (50:13) Silicon Valley Bank implosion from Plaid's POV (53:17) Surviving 2022, and the future of fintech in 2023 and beyond * Read LAUNCH Fund 4 Deal Memo: https://www.launch.co/four Apply for Funding: https://www.launch.co/apply Buy ANGEL: https://www.angelthebook.com Great recent interviews: Steve Huffman, Brian Chesky, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland, PrayingForExits, Jenny Lefcourt Check out Jason’s suite of newsletters: https://substack.com/@calacanis * Follow Jason: Twitter: https://twitter.com/jason Instagram: https://www.instagram.com/jason LinkedIn: https://www.linkedin.com/in/jasoncalacanis * Follow TWiST: Substack: https://twistartups.substack.com Twitter: https://twitter.com/TWiStartups YouTube: https://www.youtube.com/thisweekin * Subscribe to the Founder University Podcast: https://www.founder.university/podcast

Zach Perret

Co-Founder and CEO

Plaid

To celebrate 10 years of SaaStr, we're revisiting some classic podcast episodes. Up today: Plaid co-founder and CEO, Zach Perret. This interview with CNBC's Ari Levy took place in February 2019, shortly after Plaid raised a Series C round at a $2.7B valuation. In 2021, Plaid raised their Series D at a $13.4B valuation. Companies that have access to more accurate financial data have the ability to develop seamless exchanges of information, providing consumers with improved ways to manage their finances. But how do companies gain secure access to that data in the first place? Enter the platform company. Hear from Plaid co-founder and CEO, Zach Perret, as he walks through his lessons learned building Plaid and how it found itself at the center of the fintech ecosystem. Full video: https://youtu.be/cUIahrKfOq0 Want to join the SaaStr community? We're the 🌎largest community for B2B software. Subscribe for weekly updates: https://www.saastr.com/subscribeform Twitter: https://twitter.com/saastr LinkedIn: https://www.linkedin.com/company/2724976 Quora Group: https://www.quora.com/q/cloud Facebook: https://www.facebook.com/SaaStr/ Instagram: https://www.instagram.com/saastr/ Our North American Event: https://bit.ly/2OXeAYh Our European Event: https://bit.ly/2OZTad8

Zach Perret

Co-Founder and CEO

Plaid

Zach Perret is the founder and CEO of Plaid.  Plaid helps companies build fintech solutions by creating APIs that allow people to connect their financial data to apps and services. In this conversation, we dive into Zach's philosophy on building products, how the financial system works today, how the financial system needs to be updated, and the trends Zach is seeing from the next wave of fintech companies launching on Plaid. I hope you enjoy this conversation with Zach Perret.   For the full show notes, transcript, and links to mentioned content check out https://www.joincolossus.com/episodes/39328476/perret-the-future-of-financial-services   DocSend is a document sharing platform that enables companies to share business-critical documents with ease and get real-time actionable analytics. With DocSend’s security and control, startup founders, investors, business development executives, and financial professionals can drive business outcomes that have a lasting impact. Start for free at www.docsend.com.   Founder's Field Guide is a property of Colossus Inc. For more episodes of Founder's Field Guide go to https://www.joincolossus.com/episodes.    Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week.  Sign up here - https://www.joincolossus.com/newsletter.   Follow Patrick on Twitter at @patrick_oshag Follow Colossus on Twitter at @JoinColossus   Show Notes [2:00] – [First question] – The notion of Great Challenges he got from his parents [3:34] – How it was instilled into him [4:26] – Default Consumptive State and constantly asking questions [5:33] – Origins of Plaid [8:57] – An overview of the Plaid product [11:10] – The early challenges of building Plaid and creating trust with all of the stakeholders [15:57] – First big break for Plaid [18:06] – Convincing Venmo to work with them [20:12] – What helped build relationships with customers [21:30] – How money is moved and their place in the chain [24:34] – How convenience helps to create larger markets and opportunities [26:39] – Usage base vs recurring revenue models [28:03] – Maintaining their systems as the landscapes and customers shift [29:56] – What is he seeing on the financial services frontier [32:34] – Building relationships with developers [35:07] – Lessons from building a business he’s learned along the way [37:44] – Successful techniques in recruiting [39:52] – What’s working well in this current landscape [41:41] – Business models that interest him [43:14] – Advice for other startup founders [44:49] – Things he doesn’t understand today that he wishes he did [45:46] – What he attributes Plaid’s success too [47:55] – Kindest thing anyone has done for him [50:09] – How you know when you’ve found a great challenge

Zach Perret

Co-Founder and CEO

Plaid

Companies that have access to more accurate financial data have the ability to develop seamless exchanges of information, providing consumers with improved ways to manage their finances. But how do companies gain secure access to that data in the first place? Enter the platform company. Hear from Plaid co-founder and CEO, Zach Perret and CNBC's Ari Levy as he walks through his lessons learned building Plaid and how it found itself at the center of the fintech ecosystem. If you would like to find out more about the show and the guests presented, you can follow us on Twitter here: Jason Lemkin SaaStr Zach Perret

Zach Perret

Co-Founder and CEO

Plaid

Zach Perret is the Founder & CEO @ Plaid, the startup providing the easiest way for users to connect their bank accounts to an app whether it be transactions, identity or authentication. To date, Zach has raised over $300m with Plaid from some of the best in the business including Mary Meeker, Index Ventures, Andreessen Horowitz, Felicis, Spark and Homebrew, just to name a few. As for Zach, as CEO he has scaled Plaid to today with over 300 employees, 3 international offices and over 10Bn transactions analysed. Prior to founding Plaid, Zach was a consultant @ Bain. In Today's Episode You Will Learn: 1.) How Zach made his way into the world of startups from consulting at Bain and what led to the founding of Plaid and the mission to unlock consumer finance? What advice would Zach give to emerging grads today, questioning whether to join or start a startup? 2.) What does great leadership and CEOship look like to Zach? How has Zach seen himself evolve and develop as a leader over the last few years? How does Zach think about prioritisation? How does Zach determine what to say yes vs what to say no to? What has Zach found the most challenging in scaling as a CEO? What has he done to mitigate this? 3.) How does Zach think about constructing the optimal recruitment process? What have been some of Zach's biggest lessons in what it takes to really recruit world-class talent? What does Zach mean when he says, "you have to hire for spikes"? How does Zach manage the tension of keeping the high-quality bar whilst also sustaining the very steep growth curve? 4.) Plaid recently raised $275m, how does Zach think about capital efficiency with Plaid today? How does Zach determine when is the right time to transition from the mindset of lean and iteration to raising a war chest and going for the home run? What is Zach's biggest advice to founders when it comes to investor selection? Is it possible for the investor and the founder to be "friends"? 5.) When assessing the fintech landscape today, what is Zach most excited to see develop over the next 12-18 months? How are we seeing much larger incumbents like Goldman innovate in the proliferated world of fintech startups? How does the US view the fintech innovation that has occurred in the UK? What does this mean for US fintechs? Items Mentioned In Today's Show: Zach's Fave Book: Hard Drive: Bill Gates and the Making of the Microsoft Empire As always you can follow Harry, The Twenty Minute VC and Zach on Twitter here! Likewise, you can follow Harry on Instagram here for mojito madness and all things 20VC.

Zach Perret

Co-Founder and CEO

Plaid