Segment CEO Peter Reinhardt says they've grown to a team size of 584 since launch in 2011 and have raised $283.7M in funding. How Peter Reinhardt scaled Segment to 130 employees by focusing on the long game [Podcast] by Tom Randle 28 March 2017. If you solve those, they will reward you for it. Peter Reinhardt: About six months after we launched the open source library, we had a good bit of free traction some customers using the product for free. Peter Reinhardt on LinkedIn: Then, I think when you get those right execs, then they can build out whole teams. Peter Reinhardt: We had just raised this money about two weeks before we deployed it, so we had to call back all the investors and say, This thing you just invested in, were really sorry, but its a terrible idea. Its like a snowball effect kind of thing? I would love to get to know you and understand this business prior to being under pressure to make a decision.. Once again, another product. : I have four things, and theyre mapped exactly to our values. See How I Can Help You With Your Fundraising Efforts, The importance of listening to your customers, Why traditional CRMs dont make sense anymore, How one article made their business a hit in just 24 hours, : Alrighty. That, to me, is a skill that Im constantly working on. We found 32 entries for Peter Reinhardt in the United States. Alejandro: You were talking about company growth. : I read somewhere recently this concept of two ways of responding to problems. Becky Peterson. Peter Reinhardt. Sales people who were reaching out to the customers and emailing them directly, tracking them within Salesforce. Moreover, I also provided a commentary on a pitch deck from an Uber competitor that has raised over $400 million (see it here). Whats that transition from early stage to growth stage where you guys are. As an entrepreneur and founder, I found a surprising amount in common with him. $140 per post at $7/CPM. Segment. 1 of 5 stars 2 of 5 stars 3 of 5 stars 4 of 5 stars 5 of 5 stars. Our churn rate spiked in the first half of that year. Peter Forsberg is a Swedish retired professional hockey player. Peter, thank you so much for being on the, If you like the show, make sure that you hit that subscribe button. You can actually do a lot of discovery; thats whats called in sales to go learn those things and test whether a product is going to deliver economic value. From left to right -- Calvin French-Owen, Ilya Volodarsky, and Peter Reinhardt. Hello everyone, and welcome to the DealMakers show. : I think the learning that we took away from that year-and-a-half of two failures, and then one accidental success was that for the first two ideas, we always had this big grand vision of how we thought the world should work. Were building an analytics tool, like a web analytics tool, to compete with Google, Webex, Mixpanel, Kissmetrics, or Adobe Analytics. That was fun. Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. We saw a year's worth of digital acceleration during an unprecedented time. The biggest learning that I had was the importance of getting to know investors before you actually go out to fundraise meeting folks, sharing your strategy, helping them understand why customers care about this thing and what the economic value is to them, giving them a moment in time where they understand what the product is and how you think about thing so that youre not trying to cram all of them into a very short fundraising period. Step 2. I think for our last shot, I think there might be a big idea behind analytics.js, this open source library. Net Worth in 2022: $1 Million - $5 Million: Salary in 2022 . What does that look like? Finally, we get to this moment we realize our analytics tool has failed. Why are so many SaaS founders taking money from Founderpath.com instead of VC`s? : So, basically, getting a connector, and then with that connector, you leverage. Subscribe: Google Podcasts | Spotify | Stitcher | TuneIn | RSS | More. This means the level at which that clarity needs to be created and the simplicity of the message needs to be twice as clear, and it needs to be half the length. That has been a challenging pace to keep up with, so I lean on investors. At first, Reinhardt completely disagreed with Taylor and felt it was "the worst idea of all time," he says. So it was a really fast growth year. Join Facebook to connect with Peter Reinhardt and others you may know. For us, Y Combinator was that key foot in the door, into the network of Silicon Valley and the investor scene as you meet some of the investors all at once, YC obviously has connections. So, our mind was already there, and when we decided to not work on Class Metrics anymore we kind of pivoted into the analytic space. We were clearly failing to find product/market fit. by Y Combinator 5/18/2017. Over the next year and a half, we cleaned up that library a bit and cleaned up more. At the end of our junior year, we dropped out, applied to Y Combinator, got in, and we decided to build a classroom lecture tool. Peter Reinhardt: The most important thing to realize is that the world doesnt care how you think it should work. How was life there? Peter Reinhardt: One interesting thing that people always said that I have not found to be true. Then, of course, performance reviews, which is a helpful time to get feedback from all my direct reports. The other, obviously, is just scaling culture. . We believe in you guys. About a year later, we crossed one million in revenue and were growing super-fast. This will be a fair test of whether this thing has product/market fit or not. I recall booking the largest, most impressive conference room we had and a 10AM meeting. I grew up in Seattle, which is actually where Calvin and I met back in 7th grade. . Peter Reinhardt, welcome to the show. My guest today is Peter Reinhardt, co-founder and CEO of Segment, the market-leading data customer data platform that was acquired by Twilio last year. When we first started we figured, "hey, we're students, we should be solving student problems." In fact, the three founders were spending $30K every year on the process of product development. Still, not everything went as planned. You probably see the problem. I grew up in Seattle . They dont have time to talk to customers. It ended up not being useful at all. We thought, Okay. I think if thats a piece of advice that I could go back and give myself, it would be to run straight at the problem. That was a transformational pricing change. I think we had a big success there, but I think we have also massively under-invested in pricing packaging, aligning pricing, and packaging to help customers want to buy is critically important. He studied Aerospace Engineering at MIT and fell into the world of customer data and analysis when he started the company with three college friends. I think investors are actually quite aligned with wanting to get to know folks six to nine months before theyre in the throes of the fundraising process. Once you got this big breakthrough, what were some of the next steps to actually deliver on your promise? Peter Reinhardt: I think it was learning how to raise money for something that my friends and I were passionate about. : Is there any specific strategy, for example, that you use in order to get in front of those investors. Over our growth trajectory, weve been graced with lots of inbound business, lots of word-of-mouth in our customer growth. Segment has thousands of customers across the globe, from fast-growing businesses such as Atlassian, Bonobos and . So, the concept of a CRM being the customer data system of record doesnt make sense anymore. I loved the book Enders Game. He is an actor, known for Offiziere (1986), Die Sprungdeckeluhr (1990) and .zu Stein. It ended up competing with the official high school newspaper, so that was a lot of fun. I was thinking this would just totally kill it. Peter Reinhardt: But whats happened over the last 20 years is that all of the channels by which we interact with customers have become digital, and theyve multiplied. Forsberg is known for being one of the best players of all time. I think there might be a big business in this open source library. Starting Monday I will be working full-time on @CharmIndustrial, focused on permanent carbon removal via bio-oil sequestration. Like, sure, sales is one channel of the 20 I just mentioned, but its just one of 20. That needs to happen, but what shouldnt change is there should be some set of values that are literally the things that you value that shouldnt change if its the things that you value. We Googled analytics tools, and we found Google Analytics, Mixpanel, and Kissmetrics, but we couldnt figure out which of those analytics tools was actually good or was the right fit for us. Obviously, getting that social approval and the right type of introduction is critical. A Peter Reinhardt, director ejecutivo de Segment, inicialmente no le gustaba la idea de crear una empresa de tecnologa de datos de clientes. So, yeah, we don't have the credential, but the MIT alumni Twitter handle still tweets out occasionally as if we were. : Wow. The world has some problems, and you have to listen and learn to listen very carefully to hear other people explain what their problems are hear other businesses explain what their problems are. Dropbox Paper, a great shared writing environment. For us, that is the big transition were going through now, which is how do we figure out the go-to-market strategy and details of who we go after? Im happy with Google Analytics and Mixpanel. So, over the course of the months leading up to December 2012, we started to notice that this little open source library was getting traction. Maybe we should put it out there and see if it solves a problem for even more people. Yeah, it turns out it solves a big problem for people. Heres what were going to do. He studied Aerospace Engineering at MIT and fell into the world of customer data and analysis when he and three of his college friends started Segment in 2011 as part of YC. Its hard for them to understand the broader space. So, getting really clear what the customer about what the exact explicit problem that they have and the economic pain that its creating for them, and then how your product is explosively going to solve that economic pain. . In high school, the first entrepreneurial thing that I got myself into was starting a high school underground newspaper called. Number of Past Jobs 1. Peter Reinhardt: I dont think we did a good job of this at first. : Thats very powerful, Peter. Here to prove that the answer is "yes" are three founders of Segment--who all dropped out of MIT to pursue their entrepreneurial passions--Peter Reinhardt, Calvin French-Owen, and Ilya Volodarsky. Peter Reinhardt: Thats right. Volodarsky: We first met at campus preview weekend [at MIT]. The first half of the year, we went from 10 to 12.5, which scared us. Eventually, we open sourced it, and we started using it as a growth hack. Finally, Im sure this was a big breakthrough for you guys from understanding the value of being able to listen to your target audience. What a difference from building on assumptions to all of a sudden, you put this thing, and you start having good data and good validation. Each week in their MIT "Founder's Journey" class, the founder of a successful start-up would speak and answer students' questions. 3 min read. At the end of the class, Volodarsky had an unconventional idea: "'What if we just invite Adam back to the dorm for a beer?'" It ended up competing with the official high school newspaper, so that was a lot of fun. Alejandro: Is there any specific strategy, for example, that you use in order to get in front of those investors. Then I went off to MIT and started studying aerospace engineering there. Further east is none other than long-time resident media tycoon Kerry Stokes, chairman of Seven West. Then I went off to MIT and started studying aerospace engineering there. You probably see the problem. Don't miss:Chase Sapphire Preferred is offering a massive 80,000-point bonus for a limited time, Check out:How this 16-year-old turned her homemade chicken wing sauce into a business bringing in 6 figures a year. The second value for us is tribe, which is that we want to push everyone around us to get better and be accepting of that when we feel that push from others. Charm Industrial CEO & Co-founder Jul 2017. By digitizing financial services, focusing on underserved segments of the population, building trust and relationships with customers and leveraging blockchain technology, fintech companies can help to make financial services more accessible and affordable for those who need them most. We had people reaching out to us on LinkedIn demanding access to the beta version of this product, the hosted beta version of this product, which didnt exist at the time we launched it. Segment, a $600 million data infrastructure company, just hired its first chief financial . Peter Reinhardt: Yes, investors are in the business of making good investments, not just investing. When someone is running a fast fundraising process with a whole bunch of people, and its the first time theyre meeting them, its hard for them to assess the person. Thats what Id tell myself. My guest today is Peter Reinhardt, co-founder and CEO of Segment, the market-leading data customer data platform that was acquired by Twilio last year. : The most important thing to realize is that the world doesnt care how you think it should work. Peter Reinhardt: I guess I was always excited about aircraft, and I was always studying different rocket designs and reading about the missions to the moon and what was going on on Mars and just always super excited about that. For us, Y Combinator was that key foot in the door, into the network of Silicon Valley and the investor scene as you meet some of the investors all at once, YC obviously has connections. We got to December 2012 and realized that this analytics tool wasnt a good market, and we didnt have a great idea for a product there. Reinhardt lead customer data platform company Segment through its acquisition by Twilio for $3.2 billion last year. Alejandro: Wow. Reinhardt became CEO; French-Owen, CTO; Volodarsky, president; and they brought on another friend, Ian Storm Taylor, a student at the Rhode Island School of Design, to be lead designer. Otherwise, the company simply cant ingest it fast enough. In our conversation, we cover the fascinating journey of Segment from an education feedback tool to the business it is today, Peter's sales philosop When mixture has doubled in bulk, in 1 to 2 days, convert it into a starter: Combine 12 ounces flour and 9 ounces filtered or spring water in bowl. I know that next year, the challenge is going to be twice as hard again. $700,000. Over the next year and a half, we cleaned up that library a bit and cleaned up more. We had 100k left in the bank. Related by Industry: Business Products & Software Services, Located in San Francisco-Oakland-Fremont, CA Metropolitan Area. . We added it ourselves as the fourth analytics service that it could send to because, by that time, we were building this analytics tool. I think I was a little bit slow to make this transition from the search from product/market fit to go-to-market strategy. Peter Reinhardt on Twitter: @reinpk Nach dem Volontariat ab 1982 Politikredakteur. "Turns out it's a very, very crowded market.". In other words, its hard to do the proper diligence to figure out whether its a good opportunity. 14. The first half of the year, we went from 10 to 12.5, which scared us. Like, Classrooms should be digitized. Also, remember, if you need any help, whether it is with your fundraising efforts or with selling your business, you can reach me at [emailprotected]. This abandoned high school was converted into a 31-unit apartment building. In your case, how much capital have you guys raised for Segment? I look for evidence of those four things. Ilya Volodarsky: I work in the products engineering team, so both doing products and engineering. That was a transformational pricing change. You don't get that by trying to be intuitive," he said. Welcome to the Segment's second annual Customer Data Platform Report, an in-depth look into how organizations are using CDPs - exploring the data they're collecting, and the apps they're using to manage that data. Lots of word-of-mouth in our customer growth my direct reports for something that my friends and I met in. Got this big breakthrough, what were some of the next year and half... And emailing them directly, tracking them within Salesforce that the world doesnt care how you think it learning... Doesnt care how you think it was `` the worst idea of all time I went off to and. Be a big business in this open source library chairman of Seven.. You solve those, they will reward you for it search from product/market or... 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