It turned out the analytics space is incredibly crowded. Peter Reinhardt: Thats right. He is an actor, known for Offiziere (1986), Die Sprungdeckeluhr (1990) and .zu Stein. : I think it was learning how to raise money for something that my friends and I were passionate about. Find Peter's email address, mobile number, work history, and more. We still had no paying customers. Public Records for Peter Reinhardt Found. I think it was this reversal from an inside-out vision-driven view of the world to an outside-in, What problems does the world have, and can we start solving those problems? Once we took on that mentality and hosted this open source library product/market fit, it was obvious because there were so many people who were excited about this thing and the problem that it solved that they were giving us all kinds of feedback about their other problems. We started doing research on that. Bradford: So Class Metric is the startup you took to Y Combinator. 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. Proud father. That style of fundraising where you get to know folks before you actually ask them for money, I think, is something that weve carried forward from the Series A to the B to the C to the D. Alejandro: Got it. Peter Reinhardt: The growth trajectory over the first few years was basically zero to 2.5 million, and then 2.5 to 10, and then 10 to 20. : In this case and perhaps in other situations of the business, how do you go about first, identifying the problem? I think there might be a big business in this open source library. 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. You had all these lessons from not listening to customers to then being hyper-focused on that data and listening to your customers to be able to execute. We were clearly failing on this sort of customer sales side of things, and we were just spending all of our time building, building, building. Peter Reinhardt, who was the CEO of Segment for nearly 11 years, is leaving parent company Twilio today, according to TechCrunch. So, we had a huge fight, all four of us founders.". I would love to get to know you and understand this business prior to being under pressure to make a decision.. How did that go? Alejandro: The industry as a whole where Segment is, how do you see the industry evolving over the next couple of years? Once you break-in, then its fairly easy to navigate the network through introductions. I loved the book. It was pretty straight forward from there, or at least relatively speaking, to build more and more of a product that solved the deep problem around how they managed their customer data. I didnt find that to be the case in our Series B fundraise. I also set personal goals once a year and reflect on them quarterly. The other, obviously, is just scaling culture. The company has raised $300 million from top tier investors such as Accel, Google Ventures, Meritech Capital Partners, Thrive Capital, NEA, Kleiner Perkins, and General Catalyst to name a few. What happened was that we had a pricing and packaging problem. At Segment, #SFBT40Under40 honoree Peter Reinhardt is bringing democracy to data. I think companies change significantly in terms of how they feel socially, which is fine. How do we get in touch with them? I lean on those direct reports, who are best a creating clarity to help me figure out how to synthesize at that next level. Published: 26 Mar 2021. What happened was that we had a pricing and packaging problem. My dad had his own business in terms of a small-scale contractor. : Thats right. In this video Peter illustrates why Finance is a very important skill for you to learn - for building your pricing strategy, forming master service agreements, arranging credit with your bank, and . Alejandro: Very cool. Im looking for people and execs who have demonstrated that they know how to grow people. We shouldnt have had to we actually stood in the back of classrooms and counted screens to figure out what people were doing. . Dollar-based net expansion rate was 139 . We had a bunch of professors at MIT who were excited about it, and we built all this over the summer at Y Combinator. It's been an amazing ride with all the really smart people we're able to work with now. Peter Reinhardt: Yeah. They started saying, This is great. Career . In other words, its hard to do the proper diligence to figure out whether its a good opportunity. I lean on my co-founders. Segment is now a division of Twilio and will continue to be led by Segment CEO Reinhardt, according to Twilio. Peter Reinhardt is CEO of Twilio Segment, the world's leading Customer Data Platform. We had started reading a lot of Paul Grahams essays on, in and around, Y Combinator and Hacker News, which started getting me excited about that. 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. SaaS Founders Who Make The Most Revenue Per Employee. We were like, We should put analytics on our classroom lecture tool. That said, I do think the founder CEOs attention shifts dramatically post-product/market fit. That, to me, is a skill that Im constantly working on. Organization Name. . People have said that around Series B is when it stops being about the vision, and it starts being about just the numbers. We still had no revenue, so we went out and raised a 2-million-dollar seed-extension round from Kleiner Perkins and E.ventures based on the traction that we were having in customer reviews, but not based on revenue. As a new year starts, we return to our work routine, facing the prospect of a recession. Over the next year and a half, we cleaned up that library a bit and cleaned up more. : Yes, investors are in the business of making good investments, not just investing. Then I have an executive coach who talks through whatever the challenges of the week and helps me reflect on whats going well and whats not. Today, Reinhardt announced he was leaving . A live webcast of the conference call, as well as a replay of the call, will be available at investors.twilio.com. It ended up not being useful at all. Though we found there were actually thousands of these different tools out there that do these different jobs particularly well, they all kind of require the same data under the hood. I think for our last shot, I think there might be a big idea behind analytics.js, this open source library. So many lessons learned, so many things that you guys have done, so many experiences now, if you had the chance to go back in time, Peter, and have a conversation with your younger self and give that younger self one piece of advice before launching a business, what would that be, and why, knowing what you know now? The hardest thing is breaking into the network for the first time. I think companies change significantly in terms of how they feel socially, which is fine. When? "It was pretty obvious that it was not going to work. : 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. So, as the fall semester started, all these students opened their laptops using our new tool, except that they werent actually using the new tool. : I find that the most motivating times for me are when it becomes clear that over the previous quarter of two, that I have failed at something because that, to me, means that over the next quarter, I now understand the thing that I need to get better at. by. Some initiatives work; some initiatives dont work. After noticing how it was being used, Taylor recommended they take it commercial and make that Segment's product. Also, remember, if you need any help, whether it is with your fundraising efforts or with selling your business, you can reach me at, Pierre-Francois Thaler On Raising $200 Million To Make Supply Chains More Accountable, This Entrepreneur Raised $60 Million To Keep Your Mind Sharp And Memory Intact, Elli Kaplan On Raising $60 Million To Keep Your Mind Sharp And Memory Intact, This Entrepreneur Raised $165 Million To Simplify Payments In A $10 Trillion Industry, Bharath Krishnamoorthy On Raising $165 Million To Simplify Payments In A $10 Trillion Industry. $700,000. Where? It turned out the analytics space is incredibly crowded. We were a year and a half in. So it's up to you to go and learn something if you don't know how to do it, or drive something over the finish linenot just wait and sit back and let things happen to you. Its like a snowball effect kind of thing? It rains a lot in Seattle, so I grew up with the idea that the rain outside was normal. I think oftentimes, people maybe go a little bit too down the rabbit hole of thinking that its just numbers, numbers, numbers after Series A. I actually think for the really big companies that are unlocking their ways into bigger and bigger sequential markets like the vision and how youre building into that from a product roadmap perspective is still super important. Preheat oven to 475-500F, and place an empty pan on the bottom rack of the oven (so it can preheat to turn water into make steam). Do they have a history of delivering results, whatever those were in their function? All Rights Reserved. : In our junior year, my roommate and I started to recognize that we wanted to start a company together. So, the concept of a CRM being the customer data system of record doesnt make sense anymore. We, TechCrunch, are part of the Yahoo family of brands. That ability to create clarity is really important as a company scales, and it gets exponentially more difficult. What I mean by that is, rather than meeting one exec candidate one week or two candidates the next week, and then one candidate the next week, and three candidates the next week, what we try to do is bunch the candidates up so that I meet three candidates in a day for three days in a row. So we started with this college lecture tool that we called Class Metric. Thousands of companies from more than 70 countries use Segment to achieve a common understanding of their users and make customer-centric decisions. Were building an analytics tool, like a web analytics tool, to compete with Google, Webex, Mixpanel, Kissmetrics, or Adobe Analytics. Founded in 2011, Segment has raised over $284 million from top investors including GV, Accel and Meritech Capital, and is valued at more than a billion. The conference call can also be accessed by dialing (844) 453-4207 (United States) or (647) 253 . Prior to Charm, Reinhardt was CEO and co-founder of Segment, a SaaS customer data platform that was acquired by Twilio in 2020 for $3.2B. After a year of working on that, we had burned down to maybe 100k left in the bank, and we didnt have that much cash left. : Thats very powerful, Peter. Where? Alejandro: Wow. Or, the future of analytics looks like this. There was always this inside-out kind of view of how the world should work. So, the concept of a CRM being the customer data system of record doesnt make sense anymore. : Yeah. Its crazy hundreds of thousands of lines of code trying to make this overcomplicated classroom lecture tool. So, we paused there and rewound back to the very first week of Y Combinator a year and a half earlier. Segment. I wrote all this code. The fourth is maybe a little more unusual, which is, create clarity. People were using it to solve their data-routing problem to sent data to their analytics tools. : Going back to the discussion on growth, you guys have experienced quite a significant amount of growth, as well, on the employee side of things. If you give investors a preview of that, say six, nine months before you go fundraise, then when you go fundraise, its more a discussion of numbers and strategy. He and his wife Erika, who he met at MIT, live together in San Francisco. We should have been able to figure out analytically from the data that this wasnt working during our summer test. French-Owen: Actually, Peter, I think you said this once. So, our initial product was built to give students a way to say, "hey, I'm confused," or, "I get it," and the professor would have a real-time indicator telling them how confused or how well the class understood things. That, to me, is a skill that Im constantly working on. We always find ourselves having to put way more effort into that than we think is necessary, and it always pays back in spades to reinforce our core company values again and again in as many different places as we can in the interview process, in the welcome package for onboarding, in the performance review at all hands every two weeks, etc. I think I was a little bit slow to make this transition from the search from product/market fit to go-to-market strategy. And if you got any value either from this episode or from the show itself, share it with a friend. Moreover, I also provided a commentary on a pitch deck from an Uber competitor that has raised over $400 million (see it here). When we first started we figured, "hey, we're students, we should be solving student problems." Once again, another product. Its hard for them to assess the strategy with a clear head. Peter has over 25 years of experience in professional . We were never challenged to go and figure out deeply, who is the customer? Bradford: Give me the nutshell version: what does Segment do? If youre familiar with Medpick, or youre searching for an economic buyer who has a pain point, a champion, youre searching for the economic impact of what the problem is for them and what the solution, therefore, might deliver in terms of economic impact. After a year of working on that, we had burned down to maybe 100k left in the bank, and we didnt have that much cash left. He and his wife Erika live in San Francisco. In that year, we went from 10 to 20; we had a really big scare. Peter Reinhardt: I think it was learning how to raise money for something that my friends and I were passionate about. Over the first four years, we got burned too many times by not charging hard directly at whatever the problem was that we saw. That pays back in spades as people then operate on the same operating system of what everyone values inside the company. May 2011 - Jan 202210 years 9 months. It ended up not being useful at all. For example, in 2016, Segment launched two products called Warehouses (which helps customers collect and store first-party customer data) and Sources (which helps analyze that data) "as a result of customer feedback," Reinhardt says. 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. Volodarsky: Yes, we basically built that product through YC in the summer of 2011 after we got into YC. If you like the show, make sure that you hit that subscribe button. Then, we started beta testing it at the end of the summer. There are dozen and dozens and hundreds of analytics companies. I didnt find that to be the case in our Series B fundraise. I guess that worked initially was, it was okay to build a lot of stuff and kill a lot of stuff as long as you actually kill a lot of stuff. Then I went off to MIT and started studying aerospace engineering there. What Im looking for here is, does the exec have the ability to take the ambiguous complexity that is the world that a startup exists in, are they able to synthesize it down into the absolutely essential things that must get done right now? . 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. I think I was a little bit slow to make this transition from the search from product/market fit to go-to-market strategy. Sales is not something that had a ton of appreciation for when we started the company, but I think over time, its something that Ive developed more and more appreciation for. Erich R Reinhardt Net Worth 2023 and insider trades. Oct 25, 2018, 6:00 AM. But that changes with the new Xeon W series. 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. Get a custom action plan and all the help that you need to start raising more capital. Peter Reinhardt CEO and Cofounder at Segment Internet San Francisco, California. Volodarsky: Basically, long story short, we just hacked around on different side projects for a few years, until we settled on one and then we dropped out to do Y Combinator in the summer of 2011. Filmed at key heritage sites all across Hong Kong, including Tai Kwun, Tang Tsing Lok Ancestral Hall and Kowloon Walled City Park, this documentary showcases Hong Kong's multicultural history. 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