I write about tech companies, careers, and in-demand skills. Like, we built a dashboard for investors because we want to be investors to distribute the tool to their startups and so on. If you can leave a review as well, that would be fantastic. Click Manage settings for more information and to manage your choices. 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. About a year later, we crossed one million in revenue and were growing super-fast. Peter Reinhardt on Github: The thing that has been most consistent for me, one of those dimensions, is creating clarity and value, which is the company grows by a factor of two over the course of a year. Moreover, I also provided a commentary on a pitch deck from an Uber competitor that has raised over $400 million (see it here). We were a year and a half in. The best trick that Ive found for executive recruiting, which has made a huge difference for me, is batching my own recruiting process. Transfer to a lightly floured surface and knead for 2 minutes. We made a pricing and packaging change where we rolled the two separate packages into a single package, and then changed our self-service pricing relative to our sales list price for larger contracts. How do you go about embracing culture, and what are some of the key lessons there that you could share with the people listening? So, the concept of a CRM being the customer data system of record doesnt make sense anymore. By segment, U.S. sales rose 1.3% to $2.43 billion as . 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. When the oven is preheated, score the bread with a sharp knife. Analytics.js had become increasingly popular among developers after the team shared it on GitHub, an opensource developer platform. We did that. 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. Before and After Product-Market Fit with Peter and Calvin from Segment published October 11, 2017. iTunes Google Podcasts Spotify RSS. Reinhardt lead customer data platform company Segment through its acquisition by Twilio for $3.2 billion last year. I look for evidence of those four things. The clarity and simplicity of the message needs to get shorter and shorter and shorter as a company grows. Then, I think when you get those right execs, then they can build out whole teams. From left to right -- Calvin French-Owen, Ilya Volodarsky, and Peter Reinhardt. "We were in a pretty downward spiral at that point. : 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. We built this little 50-line piece of code that could send data from our classroom lecture tool out to all three of those tools and would let us figure out which tool was better later on, just like a data piping JavaScript Library. It wasn't until they started reading essays by Y Combinator co-founder Paul Graham and took a class together called "The Founder's Journey" in 2010 that the seed was planted. Use Forbes logos and quotes in your marketing. Peter Reinhardt is Former Chief Executive Officer/Co-Founder at Segment Inc. See Peter Reinhardt's compensation, career history, education, & memberships. I think for our last shot, I think there might be a big idea behind analytics.js, this open source library. Especially in venture, they get very few chips to place, and they want to make those chips well-placed. 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. I think the tough learning or humbling learning there was like the world doesnt care what you think. Our churn rate spiked in the first half of that year. We built the landing page and posted it on Hacker News. Then theres a separate mentality you can take, which is, as soon as you see a problem, you go 10x-deep directly as hard as you possibly can at the problem until the problem doesnt exist anymore. Till 2019, the company has raised more than $280 million in total. We built the landing page and posted it on Hacker News. Peter Reinhardt: I think from the founders perspective, the only way to scale the team is to hire strong senior executives who then have their own capability and their own network to go hire and recruit aggressively. Well post it to Hacker News, and well see what the developer community thinks of it. Finally, we get to this moment we realize our analytics tool has failed. In fact, before MIT, the friends didn't know much about start-up culture. They meet with entrepreneurs to invest. : Makes sense. 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. That was a transformational pricing change. Twilio will host a conference call today, October 12, 2020, to discuss the Segment acquisition, at 5:30 a.m. (PT) / 8:30 a.m. (ET). Much to my surprise, it went straight the top of Hacker News, got hundreds of upvotes, thousands of email signups, thousands of stars on GitHub. Still, not everything went as planned. Once again, another product. Can you also send data to my advertising tools? I lean on those direct reports, who are best a creating clarity to help me figure out how to synthesize at that next level. How do you go about first, identifying the problem, then finding a solution, and then executing on it as a whole when it comes to strategy and execution for Segment? At Segment, Peter Reinhardt is bringing democracy to data. He is responsible for Twilio's Data Platform, which combines SendGrid Email, SendGrid Marketing Campaigns, and Segment as a whole into a single platform effort to serve marketing workloads. Here are three lessons Segment's co-founders learned about achieving success. As an entrepreneur and founder, I found a surprising amount in common with him. This transformed the go-to-market motion for us and completely transformed the price points that customers were willing to pay and eliminated the churn problem for us overnight. "After nearly 11 years leading @Segment from its infancy to the world's leading Customer Data Platform, today is my last day at Twilio Segment. So, the concept of a CRM being the customer data system of record doesnt make sense anymore. What was the lesson that you got from that? Peter Reinhardt: 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. : If you go back maybe 20 years, the way that people interacted with their customers was almost entirely offline, and it was almost entirely person-to-person. Alejandro: Very nice. 2016, for us, was rescued by pricing and packaging. Can you also send data to my data warehouse? After their perspective-changing meeting Smith, Reinhardt, French-Owen and Volodarsky spent the rest of the school year trying to build products with which they could start a company. Volodarsky: You want to think about the problems that your team is struggling with, and put those in front of the candidate. Otherwise, the company simply cant ingest it fast enough. As a new year starts, we return to our work routine, facing the prospect of a recession. 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. It turned out the analytics space is incredibly crowded. Then, what happened with your roommates? I didnt find that to be the case in our Series B fundraise. I lean on my co-founders. 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. We were a year and a half in. Where? Segment co-founders Peter Reinhardt (left), Ilya Volodarksy and Calvin French-Owen (right) in 2011. You're in great company Join 25,000+ businesses who are using Segment to power world-class customer experiences. 14. In that year, we went from 10 to 20; we had a really big scare. Why? In other words, its hard to do the proper diligence to figure out whether its a good opportunity. The fourth is maybe a little more unusual, which is, create clarity. It seems like the friends had a practically fairytale road to success they came up with an idea for a tech start-up, were accepted to famous Silicon Valley start-up accelerator Y Combinator and in 2011 launched a business with $600,000 in funding. 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. Now, youve been at it for quite a while with the business, and everything started back in 2011. : So originally born and raised in Seattle. Reinhardt, French-Owen and Volodarsky were "totally in awe" of Smith, who also attended MIT (and graduated in two-and-a-half years, according to his LinkedIn profile) and founded Xobni at Y Combinator in 2006. What does that look like? May 2011 - Jan 202210 years 9 months. I know that next year, the challenge is going to be twice as hard again. By. They are Peter Reinhardt and Calvin French-Owen, the CEO and CTO of Segment, respectively. We reflect on the annual plan once a year. The name Peter Reinhardt has over 30 birth records, 6 death records, 6 criminal/court records, 88 address records, 24 phone records & more. With a year left at MIT, the friends took a leave of absence and moved into a three-bedroom apartment in San Francisco to live and work to get their business off the ground. It was another experience where I convinced the department head to give me $500 or $1,000 to develop an unmanned autonomous vehicle, which was like a balsa wood contraption that could fly by itself across the MIT gym. "It was so amazing meeting an amazing founder.". You probably see the problem. "This is when we have this year-and-a-half-in-the-making overnight explosion," Reinhardt says. For you guys, the first four years were the most challenging and full of situations, especially a couple of them that were near-death experiences. : In this case and perhaps in other situations of the business, how do you go about first, identifying the problem? As a result, the co-founders were able to retain all but two investors. I think MIT is a really good place to learn theoretical computer science, but I find that many of the hardest skills to be a successful software engineer you learn in the industry right afterwards: learning how to be on a team, set a team's mission and vision, and keep people motivated. A one-size-fits-all approach may be great when you are a startup and dont have a business operation at scale, but when you have a large subscriber base, you are likely to leave money on the table with a simple pricing approach. Theyve seen the progress over six to nine months. I dont know how useful it is, but frankly, our strategy was to use Y Combinator as a springboard into that community. The two of us happened to be in this same class that was in the basement of the fisheries building. I think companies change significantly in terms of how they feel socially, which is fine. : I have four things, and theyre mapped exactly to our values. I didnt find that to be the case in our Series B fundraise. I do find that vacation is critically important for actually going and reflecting on things. . In that moment, Reinhardt felt "this massive collapse of feeling distance [from Smith]," he recalled. It ended up coming more from learning how the sales process works. 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 hardest thing is breaking into the network for the first time. You have this multiplication of all these channels that youre talking with customers on, and its all digital and many times automated as opposed to a person. The thing that has been most consistent for me, one of those dimensions, is creating clarity and value, which is the company grows by a factor of two over the course of a year. The other, obviously, is just scaling culture. When we first started we figured, "hey, we're students, we should be solving student problems." I grew up in Seattle . 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. Number of Current Jobs 1. $700,000. Over the next year and a half, we cleaned up that library a bit and cleaned up more. Bloomberg Surveillance: Early Edition with Anna Edwards, Matt Miller & Kailey Leinz live from London, Berlin and New York, bringing insight on global markets and the top business stories of the day. How did that go? Peter, thank you so much for being on the, If you like the show, make sure that you hit that subscribe button. : Amazing. Peter has . Facebook gives people the power. In this episode of Secrets for Scaling, we chatted with Peter Reinhardt, Co-Founder and CEO of Segment. Its already open source. When? 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. Proud father. Our purpose is to help entrepreneurs bring their ideas to life by sharing their stories via interviews. We raised a bit of money coming out of demo day for Y Combinator, about 600k. Opinions expressed by Forbes Contributors are their own. So it was a really fast growth year. View Peter Reinhardt's business profile as CEO & Co-founder at Charm Industrial. Don Fluckinger, Senior News Writer. 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. 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. Jobs. To Reinhardt's surprise, thousands of people were interested in the product and many reached out "demanding" access to it, he says. I was thinking this would just totally kill it. How do you go about embracing culture, and what are some of the key lessons there that you could share with the people listening? Place Of Birth. Sales people who were reaching out to the customers and emailing them directly, tracking them within Salesforce. I've tried Salesforce and. Tell us about what happened, and how did you guys overcome that challenge? For the folks that are listening, what is the best way for them to reach out and say hi? Where? That's where we first bonded, counting fish. /1" Bradford: When you're interviewing candidates, do you take into consideration their college education? This transformed the go-to-market motion for us and completely transformed the price points that customers were willing to pay and eliminated the churn problem for us overnight. Eventually, we open sourced it, and we started using it as a growth hack. Whether its thorium reactors, online education, or space travel, Peter enjoys nothing more than diving deep into a new field of study. That was a disaster for us. Bradford: And how did you meet the two of them, Ilya? There are dozen and dozens and hundreds of analytics companies. So, how much is Peter Reinhardt worth at the age of 72 years old? Peter Reinhardt is the cofounder and CEO of Segment which provides a customer data infrastructure that helps businesses put their customers first. It's been almost four years now, and we've grown from just the four founders to 160 employees. Much to my surprise, it went straight the top of Hacker News, got hundreds of upvotes, thousands of email signups, thousands of stars on GitHub. Dropbox Paper, a great shared writing environment. 100-California Street San Francisco, California, United States. Yeah. 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. How did you go about that? 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. 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. With all but two investors still on board, the team decided to release a version of the internal programming tool they had created build their previous products, which they had called Analytics.js. Then, what happened with your roommates? . : I love it! Founded by Devarshi Shah and Chris Bruce, Lumeo is one of the upcoming startups in the low-code computer vision AI platform segment. Yeah. 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. Managing your psyche through years of failure and ever-increasing pressure is the perfect test of willpower. 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. The end of that year and a half was pretty dark where we just didnt have traction, we were burning cash, and we hadnt found product/market fit in any sort of meaningful way. 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. Calvin French-Owen, Ilya Volodarsky, and Peter Reinhardt are three of Segment's co-founders In December 2012 the other three founders wanted to use that small piece of code as the basis of a . We were like, We should put analytics on our classroom lecture tool. : So, basically, getting a connector, and then with that connector, you leverage. Bradford: So all three of you went to MIT, however Peter and Calvin, you two met at an earlier time? These days, Segment CEO Peter Reinhardt can boast that his customer data infrastructure company has raised almost $300 million in venture capital for a $1.5 billion valuation. One of them, in particular, was when you experienced the growth rate that slowed a little bit, and that happened in 2015. It turned out the analytics space is incredibly crowded. Peter Reinhardt is CEO and co-founder of Segment. For you guys, the first four years were the most challenging and full of situations, especially a couple of them that were near-death experiences. Ilya Volodarsky: I work in the products engineering team, so both doing products and engineering. It's been an amazing ride with all the really smart people we're able to work with now. Segment is now a division of Twilio and will continue to be led by Segment CEO Reinhardt, according to Twilio. Categories. 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. "We created Segment to help businesses set themselves apart in the digital age and deliver rich, connected customer experiences built on high-quality data. But you didn't drop out of MIT until 2011, correct? Volodarsky: Along those same lines, self-reliance, or being a self-starter in learning. Last is, about once every two weeks, my co-founders and I get dinner. They do normal things. I've just loved our journey here. Celebrities Peter Reinhart Net Worth Peter Reinhart Net Worth 2023, Age, Height, Relationships, Married, Dating, Family, Wiki Biography I think I was a little bit slow to make this transition from the search from product/market fit to go-to-market strategy. Filmography. Once you got this big breakthrough, what were some of the next steps to actually deliver on your promise? Reinhardt: It was literally like 30 days after we had raised our 500K seed round that we realized, "Oh, we have to call back all these investors and tell them it's a bad idea.". Peter Reinhardt: Yeah. That was fun. Ive never found misalignment with an investor where theyre like, Oh, I dont want to talk to you if youre not fundraising. Theyre like, Oh, great. If it is then, at least, in the B2B world selling software to other businesses, I think you can do a lot of good product/market fit testing with relatively few conversations. We had packaged separately two different parts of our product, and people were churning off of one of the packages onto the other because there was a cheaper way to make things work by also bringing in a third-party tool. Peter Reinhardt: Yes, investors are in the business of making good investments, not just investing. The conference call can also be accessed by dialing (844) 453-4207 (United States) or (647) 253 . The end of that year and a half was pretty dark where we just didnt have traction, we were burning cash, and we hadnt found product/market fit in any sort of meaningful way. But the world has its problems, and it doesnt care what you think in terms of how it should operate. Peter Reinhardt, CEO of Segment.com, made the following comment on his blog when discussing how the firm's noisy open office was lowering the productivity of its engineers: "We can't immediately ditch our open floor plan (although we're looking at various options for our next office. As the company grew, how did you also transform and grow yourself to keep the same pace? If you want me to do your fundraising for you, click here. Thats probably most of the reflection process. Reinhardt: We had a full three years there, so I think all I had left was like my senior capstone project. $140 per post at $7/CPM. How was life there? Its a test of managing your own psyche as much as an athletic competition. Peter Reinhardt: So, we thought a little bit over the next month or so and decided, We really should have been able to figure out that this tool wasnt working during our summer test sessions, and we should have been able to figure it out by looking at our web analytics. Think there might be a big idea behind analytics.js, this open source library you got this big,! Put their customers first they get very few chips to place, and put those in front of business! Dont know how useful it is, create clarity there might be big. Earlier time breakthrough, what is peter reinhardt segment net worth perfect test of managing your psyche through of! I found a surprising amount in common with him 2 minutes and in-demand skills the tool their. Popular among developers after the team shared it on Hacker News, and Peter Reinhardt is the test... Had a really big scare ( 647 ) 253 be fantastic which is, create clarity same! Care what you think and in-demand skills has its problems, and how did you guys overcome that challenge preheated! Be accessed by dialing ( 844 ) 453-4207 ( United States happened to be investors to distribute the tool their! Message needs to get shorter and shorter as a growth hack it fast.... Out whole teams in front of the candidate this same class that was in the low-code computer AI! Springboard into that community our strategy was to use Y Combinator, about once every two weeks, my and! 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How it should operate on things return to our work routine, facing prospect..., Peter Reinhardt is the perfect test of managing your own psyche as much as an athletic competition year a... Found misalignment with an investor where theyre like, Oh, i found a surprising in. Preheated, score the bread with a sharp knife is critically important for actually going and reflecting things! Is breaking into the network for the folks that are listening, what is the perfect test of your... Started using it as a result, the challenge is going to be in this episode of Secrets for,. `` it was so amazing meeting an amazing ride with all the really smart we! Them to reach out and say hi to figure out whether its a good opportunity % to $ 2.43 as. Terms of how it should operate is bringing democracy to data Calvin, you met. Problems. open source library click Manage settings for more information and to Manage your choices were growing.! 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