Peter has over 25 years of experience in professional . We raised a round from LocalGlobe and some of the best angel investors in the world, including Taavet Hinrikus / Transferwise, Alice Bentinck / Entrepreneur First, Peter Reinhardt / Segment and Charm Industrial, Yancey Strickler / Kickstarter . We built the landing page and posted it on Hacker News. 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. That was a transformational pricing change. I also set personal goals once a year and reflect on them quarterly. Organization Name. Then, how did you develop this love for aerospace? Each week in their MIT "Founder's Journey" class, the founder of a successful start-up would speak and answer students' questions. It wasnt a lot of money, but we felt like it was a big ask at the time for a couple of hundred bucks a month to go to Kinkos and get copy. But the data problem Segment aims to solve, although vitally important, is often considered less so, says Peter Reinhardt, co-founder of Segment and CEO of a new entity . Bradford: It started with just four of you, including Ian Storm Taylor who left several years ago. I said, That is literally the worst idea Ive ever heard. Eventually, we open sourced it, and we started using it as a growth hack. I dont know how useful it is, but frankly, our strategy was to use Y Combinator as a springboard into that community. $149,999 Estimated Mr. Peter S Reinhardt net worth: $250,000 - $499,999 Lines of credit (trade counter): 1 Lines Range of new credit: Greater than $9,999 Ethnic group: Western European. Finally, Im sure this was a big breakthrough for you guys from understanding the value of being able to listen to your target audience. They are Peter Reinhardt and Calvin French-Owen, the CEO and CTO of Segment, respectively. 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. Peter Reinhardt - https://twitter.com/reinpk - is cofounder and CEO of Segment - https://segment.com/ Segment helps companies capture data from every custome. Peter Reinhardt: Thanks so much for having me. : 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. Youd talk to a sales rep, and they would help you, and they would have memory in their own head or in their CRM of what your preferences were for clothing or what you last bought, etc. : Very cool. 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. The world has some set of problems, and if youre not solving those problems, and it really doesnt care how you think it should work. My dad had his own business in terms of a small-scale contractor. : 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. How was life there? 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. How should we sequence our way through the set of possible industries and market segments and roles and so forth? 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. : One interesting thing that people always said that I have not found to be true. 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. Then, we finally launched Analytics JS, which is what became Segment today. 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. Over the next year and a half, we cleaned up that library a bit and cleaned up more. 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. We were like, We should put analytics on our classroom lecture tool. 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. Infrastructure company Segment known for managing the customer data of huge brands from IBM to Glossier was acquired by cloud communications provider Twilio for $3.2 billion in stock in November. Thats probably most of the reflection process. : 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. : Very nice. Once again, another product. "That's the sort of clarity that you only get by talking to customers. Bloomberg Daybreak, anchored from New York, Boston, Washington DC and San Francisco provides listeners with everything they need to know. Today were going to be having an entrepreneur that is going to be teaching us a lot about product/market fit, what worked, what didnt work, scaling companies. : So originally born and raised in Seattle. 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. Bradford: So all three of you went to MIT, however Peter and Calvin, you two met at an earlier time? Starting Monday I will be working full-time on @CharmIndustrial, focused on permanent carbon removal via bio-oil sequestration. Last is, about once every two weeks, my co-founders and I get dinner. 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. I work primarily on technical and backend things. I think most product-focused founders miss huge opportunities in pricing and packaging. Then we'd go and figure out how to build them. How many people work at Segment today? Its hard work to pick the few things that really matter. At the end of the class, Volodarsky had an unconventional idea: "'What if we just invite Adam back to the dorm for a beer?'" Peter Reinhardt CEO and Cofounder at Segment Internet San Francisco, California. Net Worth: $54 Million. Our churn rate spiked in the first half of that year. Volodarsky: You want to think about the problems that your team is struggling with, and put those in front of the candidate. 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. How do we get in touch with them? By segment, sales of Advanced Technical Materials climbed 60.1% to []. Segment. How do you go about embracing culture, and what are some of the key lessons there that you could share with the people listening? I think there are probably a number of people on the team who don't have a college education or certainly didn't go to an Ivy League school. Then, over time, as the stakes have gotten higher, weve gotten better at figuring out how to determine whether something is really going to move the needle, which surprisingly, that didnt come from learning more about product management. I wrote all this code. We still had no paying customers. Alejandro: I love it! How are you able to filter through that to be able to focus and prioritize what matters on the roadmap in front of you? January 7, 2022. "It was pretty obvious that it was not going to work. 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. I said, That is literally the worst idea Ive ever heard. 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. : Then eventually, you had to put this out there. Sales people who were reaching out to the customers and emailing them directly, tracking them within Salesforce. For the last few generations, Intel hasnt updated its HEDT line-up, instead favoring its reinvigorated mainstream segment, which offer massive performance uplifts, thanks to their updated, high-performance hybrid architectures. 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. Reinhardt, French-Owen and Volodarksy didn't start out dreaming of being entrepreneurs. : You were talking about company growth. In that offline world where you were actually talking to someone, the CRM made sense as the customer data system of record. They dont have time to talk to customers. As the company grew, how did you also transform and grow yourself to keep the same pace? 100-California Street San Francisco, California, United States. Related by Industry: Business Products & Software Services, Located in San Francisco-Oakland-Fremont, CA Metropolitan Area. 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. Hearing from Smith left Reinhardt, French-Owen and Volodarsky "totally floored," Reinhardt says. By Bread Alone: A Baker's Reflections on Hunger, Longing, and the Goodness of God. Students didn't use the product as intended once they got onto their computers, they started surfing the internet and were distracted from the lecture. The January reading for new-home sales is due next week, but the figure rose 2.3% in December. What happened was that we had a pricing and packaging problem. So Segment really sits in the middle of all that, powering those tools, and making sure the right data gets to the right place and the right format. 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. How did you go about that? Peter Reinhardt is the CEO & Co-founder at Charm Industrial. I think for our last shot, I think there might be a big idea behind analytics.js, this open source library. The co-founders got accepted. Reinhardt: We had a full three years there, so I think all I had left was like my senior capstone project. Whats that transition from early stage to growth stage where you guys are. 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. That third idea where we said, We dont know if this is a big grand vision, but it seems like its solving a problem for people. He's the author of five bread-baking books, including "The Bread Baker's Apprentice," which won both the James Beard and IACP Cookbook of the Year awards, as well as the International Gourmand Award for Best Baking Book in the World. Zo Bernard. Once you break-in, then its fairly easy to navigate the network through introductions. Banking-As-A-Service Is Under Fire Whats Next For Fintechs Hottest Segment, Qualcomm Brings Home Broadband To The Car, Supplementary Review: ACCO Brands (ACCO), February 24, 2023, Supplementary Review: Mativ Inc. 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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. Then, I think when you get those right execs, then they can build out whole teams. As an entrepreneur and founder, I found a surprising amount in common with him. 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. In other words, its hard to do the proper diligence to figure out whether its a good opportunity. I think most product-focused founders miss huge opportunities in pricing and packaging. People have said that around Series B is when it stops being about the vision, and it starts being about just the numbers. 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. Information about your device and internet connection, like your IP address, Browsing and search activity while using Yahoo websites and apps. Thats probably most of the reflection process. Peter and another colleague saw what I was doing and came to my company to meet in person. We were a year and a half in. Still, not everything went as planned. It turned out the analytics space is incredibly crowded. Why are they so compelled and interested in the product that we offer, and how do we communicate that to them? My co-founder is like, You know what? . Between fall 2011 and winter 2012, the co-founders worked 80 to 100 hours a week creating a new product for Segment a web analytics tool for companies to better understand their customers' behavior. We had a bunch of professors at MIT who were excited about it, and we built all this over the summer at Y Combinator. In your case, how much capital have you guys raised for Segment? Analysts that would go straight to the data. 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. They were like, Oh, its great that you send data to my analytics tools, but can you also send data to my email marketing tools? What do you want us to do with the money? Almost all of them a couple took their money back, but the rest said, We really invested for the team. A Division of NBC Universal. Its actually a little too sunny here in San Francisco for me now. Filter by State in . 2016, for us, was rescued by pricing and packaging. Came in the next day and was like, All right, guys. There are people who, when they see a problem, tend to shy away from it and be like, Oh, I dont want to deal with the problem. It may be totally subconscious. Peter Reinhardt: I'm one of the cofounders of Segment, and I'm the CEO as well. Laurence Bradford: Can you each give yourselves a quick introduction? We raised a bit of money coming out of demo day for Y Combinator, about 600k. Once we have found one problem, people were willing to dump all their other problems onto us as well. We were really excited about this. Its actually a little too sunny here in San Francisco for me now. By Geoffrey Keating. "Together, Twilio and Segment have an incredible opportunity to build the customer engagement platform of the future," said Peter Reinhardt, Segment's co-founder and CEO. Were building an analytics tool, like a web analytics tool, to compete with Google, Webex, Mixpanel, Kissmetrics, or Adobe Analytics. People should have all these great feedback loops. The other, obviously, is just scaling culture. 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. About a year later, we crossed one million in revenue and were growing super-fast. Forbes Lists #26. That people they previously managed may be in even bigger roles, and those people say, The time under that exec was formative for me. The third is drive, which is delivering results, probably the most straightforward one. I didnt find that to be the case in our Series B fundraise. Finally, we get to this moment we realize our analytics tool has failed. 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. Its hard, so you have to delay the early ones and pull forward the late ones. For the first class, the guest speaker was Adam Smith, founder of email software company Xobni (Inbox spelled backwards) and machine learning company Kite. Login Get Started. That was fun. Your approach to evaluating and determining your marketing budget should be applied for each goal of an expense or investment. Net sales for the final quarter of 2022 grew 2.2% from the prior year to $4.13 billion. We have the 100k left in the bank. Segment is the single platform that collects, translates, and routes your user data to hundreds of analytics & marketing tools with the flip of a switch. 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