Investments

Tercera and Twilio invest in API specialist Terazo

Today I’m excited to officially announce Tercera’s newest portfolio company – Terazo! You can check out the official press release here.

Terazo is a software development and managed services provider that specializes in APIs and platform integration. It’s one of Twilio’s most promising partners. This investment, led by Tercera with participation from Twilio, will help accelerate Terazo’s expansion and hiring efforts, and grow its growing portfolio of integration and automation services — all at a time when nearly every company is ramping up its efforts to modernize and automate their systems.

Why Terazo?

Founded in 2016, Terazo quickly became a force to be reckoned with in the API economy, and in fewer than five years, has become a critical part of their clients’ digital supply chain. With one of its values being “Level the Playing Field,” Terazo is helping both first movers and technology laggards to build, automate and connect systems using cloud platforms.

When we were first introduced to CEO Mark Wensell and his co-founders Chris Busse and George Boatright, it felt like a natural match. As Mark states in his Q&A with us, “it’s the right meeting of somebody who believes in the same ecosystem and capabilities we believe in, and sees the immediate need for us to scale up to meet that need.”

At Tercera, our goal is to find, support and empower the people and services firms that will lead the cloud’s next wave of innovation. Terazo fit our thesis perfectly, exemplifying so many of characteristics that we believe will define the third wave cloud consultancies.

The cloud has matured significantly over the last 20 years, and the attributes that led to success in the first two waves won’t necessarily cut it in the next decade. The pandemic made that clear. The firms whose business values, delivery, go-to-market models, and talent are optimized for the third wave — who can help businesses build the differentiating digital experiences they need to connect and engage customers in a new way — are those that will win.

Why this ecosystem?

The API economy is huge, and as companies continue their migration to the cloud, it’s going to become even bigger. Entire business models are now being built on the consumption of data and services over APIs, and businesses are seeing first-hand the power (and necessity) of a programmatic approach. As Mark says, “things move fast in a digital world and that pace is only going to increase.”

Twilio is leading the charge in this space, providing an API-first customer engagement platform for digital transformation. CEO Jeff Lawson calls this moment in Twilio’s journey a “generational opportunity.” We believe the same can be said for the partners who support and extend these platforms. As Twilio expands its enterprise relationships, and broadens that platform, it will need partners like Terazo who, as Twilio Chief Customer Officer Glenn Weinstein puts it, “embody that builder mindset.”

Why Mark?

Our mantra as a firm is “people over products.” We look for services firms that want to do something big. In our quest to find founders who are mission-driven, values-oriented and growth-minded, Mark fits the bill perfectly.

As Mark so eloquently put it, “you must care about people and see people as the solution, not technology. And then you must find people that feel the same way.” Before founding Terazo, Mark was a CIO. He started Terazo to be the vendor that he was looking for and couldn’t find. After 15+ years in technology services, I can attest that the best leaders are those who understand their customers and know what it takes to build high-performing teams. That’s Mark.

If you want to find out a little more about Mark and his vision, check out his profile here.

Tercera adds two new partners

Former Guggenheim Partners Investment Banker Bill Petty, and Former Appirio CX and Marketing Leader Michelle Swan Join the Tercera Team

EVERYWHERE – April 8, 2021 – Tercera, a growth-focused investment and advisory firm specializing in technology professional services, today announced that Bill Petty and Michelle Swan have joined the firm as partners. Together, they bring decades of IT services experience to help Tercera drive forward the Third Wave of cloud computing. Bill and Michelle join Tercera CEO and founder Chris Barbin, partner Dan Lascell and partner Lisa Burton to support the firm’s investments in third wave cloud consultancies.

“Our goal at Tercera is to identify and empower the integrators, consultancies, and managed service providers who will lead the next wave of innovation,” said Chris Barbin, founder and CEO of Tercera. “Bill and Michelle have built, ran, advised and supported dozens of services companies over the last 20 years, and they bring pattern recognition for the opportunities and challenges our founders will experience as they scale their own business. They embody our mission and values, and will be invaluable partners to the entrepreneurs we back.”

About Bill

Bill brings more than 15 years of M&A experience to Tercera and will focus on the sourcing, execution and monitoring of Tercera’s investments. He joins Tercera from Guggenheim Partners where he was a Managing Director in the Technology Investment Banking Group. Prior to Guggenheim, Bill held investment banking roles with William Blair and City Capital Advisors and worked in KPMG’s Transaction Services Group. He has advised dozens of technology companies across the IT Services and Software markets on topics ranging from M&A, growth equity investments and IPOs. More on Bill here.

“Tercera is creating a new kind of investment firm, focused on the people that enable the third wave of cloud computing,” said Bill. “We are excited to partner with the founders and teams driving the next-gen IT services firms, and are confident that our counsel, connections and capital can help them become category defining leaders.”

About Michelle

Michelle brings to Tercera more than 20 years of branding, marketing and customer experience expertise. She will be responsible for guiding Tercera’s marketing, content and diversity & inclusion initiatives, the Tercera advisor and portfolio community experience, and helping founders amplify their own brand presence. Prior to joining Tercera, she founded and led Swancomm, a marketing communications consultancy supporting early stage product and services companies. Michelle was one of the earliest employees at Appirio, where she led corporate marketing, customer experience and initiated the company’s Customer Advisory Board. More on Michelle here.

“People-based businesses are the heart and soul of the economy, and the secret to success for some of the most well known technology companies out there. Yet they rarely get the attention and support they deserve. We aim to change that,” said Michelle.

About Tercera
Tercera is an investment and advisory firm founded to accelerate the growth of people-centric businesses. Specializing in the $460 billion cloud professional services market, the Tercera team is composed of invested operators who know first-hand what it takes to build and scale a successful cloud services business. Tercera (Spanish for ‘third’) is on a mission to identify the people and partners who will lead the next wave of cloud computing – the Third Wave – and provide them with the capital, counsel and connections they need to scale faster and take an outsized share of the market.