In January 2020, Zach Perret experienced a life-changing moment when he agreed to sell his successful Silicon Valley start-up, Plaid, to Visa for a staggering sum of over $5 billion. This deal promised immense wealth for Perret, his dedicated team, and a group of prestigious investors. However, unforeseen circumstances such as the global pandemic and government regulations disrupted their ambitious aspirations.
Unfortunately, after 12 months of agreeing to the deal, Plaid and Visa were compelled to terminate the agreement due to the interference of antitrust regulators. However, amidst this setback, the COVID-19 crisis unexpectedly propelled the growth of Plaid’s business. As people around the world found themselves confined to their homes, they turned to digital banking services, a sector in which Plaid played a significant role.
Plaid offers customers the ability to link their bank accounts with external applications, granting them access to necessary data. This data sharing is crucial for various financial services, including online mortgage lenders, money transfer apps, and digital trading platforms. In exchange for their services, these financial apps compensate Plaid through a fee structure.
Remarkably, by April 2021, Plaid successfully secured a funding round, elevating its valuation to an astounding $13.4 billion. This valuation significantly surpasses the amount Visa had initially offered. Reflecting on the tumultuous 18-month period leading up to this achievement, Perret candidly notes that deciding to sell the company he painstakingly built over nearly a decade, only to reconsider amidst the pandemic, constituted the most challenging phase of his life.
Perret, now 35 years old and Plaid’s long-standing chief executive since its inception in 2013, reflects on the valuable lessons he has learned throughout this journey alongside his colleague, William Hockey.
One notable obstacle Plaid encountered involved managing the accelerated growth of the company while simultaneously navigating the uncertainty surrounding the Visa deal. This uncertainty weighed heavily on the employees, who were already grappling with the challenges posed by a global health crisis.
Amidst this tumultuous period, Perret discerned the vital importance of effective communication, going so far as to practice “over-communication” to guide the team through this time of upheaval. To foster transparency and clarity, he initiated bi-weekly company-wide town hall meetings where employees were encouraged to voice their concerns and seek answers to their questions.
Perret firmly believes that there are instances when a leader must be present and accessible to their team on a daily basis. During times of rapid change and uncertainty, direction and decisive decision-making are paramount to keeping the team focused on their goals.
Some might argue that this leadership style lacks efficiency; however, for Perret and his team, it proved to be the optimal approach. By diligently communicating and providing clear instructions, the team remained steadfast and focused amidst the chaos, ultimately emerging stronger.
Equally critical during this trying period was maintaining a clear vision for the company. Plaid’s ultimate goal of “democratizing financial services through technology” remained steadfast, ensuring a sense of purpose and direction throughout the storm.
Perret emphasizes that the core mission of Plaid has consistently endured, while acknowledging that the goals and strategies employed may necessitate adjustments in response to external circumstances such as the COVID-19 pandemic or failed deals.
A Glimpse into Zach Perret’s Daily Routine
7:00 AM: Perret begins his day with physical activity, often going for a morning run. He prefers a light breakfast consisting of decaf coffee and water.
8:30 AM: Perret conducts a 15-minute stand-up meeting with his team, specifically his direct reports and members of the C-suite. During this call, they discuss priorities, ongoing developments, and essential information.
9:00 AM – 12:00 PM: Perret finds that his optimal productivity lies in scheduling meetings during the morning. This approach allows him the flexibility to concentrate on high-priority tasks during the afternoons.
12:00 PM – 1:00 PM: Unless he is traveling between Plaid’s offices, Perret dedicates his lunch hour to spend time with his team, gaining insights into their work and fostering camaraderie. His typical lunch consists of a salad or protein-rich meal.
1:00 PM – 6:00 PM: This period of the day remains consistently busy for Perret, though he intentionally avoids scheduling an excessive number of pre-planned commitments. This time is dedicated to diverse tasks such as client calls and significant project work.
6:00 PM – 7:30 PM: Perret engages in discussions with his leadership team during this dedicated time slot.
7:30 PM: Perret usually arrives home at this time, making a conscious effort to share dinner with his wife.
9:00 PM – 10:00 PM: Before retiring for the night, Perret dedicates an hour to address emails and stay updated on work matters.
11:00 PM: Perret values the importance of restful sleep and aims to achieve seven to eight hours of rejuvenating rest.
Perret’s upbringing in Clemmons, North Carolina, exposed him to the inefficiencies prevalent in the US banking industry. Witnessing neighbors being turned away by the limited resources of local lenders made him acutely aware of the system’s shortcomings.
Following his graduation from Duke University in 2010, where he obtained degrees in chemistry and biology, Perret began working as a consultant at Bain & Co. It was during his time there that he crossed paths with William Hockey, his future colleague and co-founder of Plaid.
Collaborating closely with financial institutions, Perret and Hockey recognized an unfulfilled need to empower consumers in effectively managing their financial lives. They discovered that while iPhones and technology were revolutionizing various aspects of daily existence, banking and financial services stubbornly clung to outdated analog practices.
In 2012, Perret and Hockey established Plaid, initially headquartered in New York before later relocating to San Francisco. Interestingly, this venture coincided with the aftermath of the Occupy Wall Street movement, which epitomized the growing disillusionment of consumers with the limited accessibility and subpar quality of financial products.
In their early endeavors, Perret and Hockey attempted to create consumer finance applications that unfortunately did
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