How to Find Product Market Fit - Peter Reinhardt. The hardest thing is breaking into the network for the first time. About a year later, we crossed one million in revenue and were growing super-fast. How do you go about scaling the team? Before and After Product-Market Fit with Peter and Calvin from Segment published October 11, 2017. iTunes Google Podcasts Spotify RSS. Bradford: Think about the "A player" employees at Segment. 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. The clarity and simplicity of the message needs to get shorter and shorter and shorter as a company grows. Peter, the people that are listening are probably wondering How do I get the attention from an investor because obviously investors are in the game of investing. Bradford: Is that when you guys started Segment, then? 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. Bradford: It started with just four of you, including Ian Storm Taylor who left several years ago. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash. : Very cool. We basically hired this one guy, sight unseen, after seeing him on Github sharing code and responding to issues, day after day, learning new things and solving problems. Its already open source. Theyve seen the progress over six to nine months. 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. Facebook gives people the power. This will be a fair test of whether this thing has product/market fit or not. Prior to starting Segment, Peter was a Research Assistant at the Naval Postgraduate School, where he wrote and designed flight software for the NPS-SCAT Cubesat, a platform which tests solar cells while theyre in orbit. 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. {Utilities} & \text{810}\\ \text{Other} & \text{980 . We were like, We should put analytics on our classroom lecture tool. The January reading for new-home sales is due next week, but the figure rose 2.3% in December. By the spring of 2011, the friends had landed on the idea for a "classroom lecture tool" that would let students flag any points of confusion to professors. 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. Its difficult to differentiate and build a compelling product. Bradford: When you're interviewing candidates, do you take into consideration their college education? Alejandro: I love it! Information about your device and internet connection, like your IP address, Browsing and search activity while using Yahoo websites and apps. I wrote all this code. 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. : Once you started on the execution of this, and you got this great feedback, it took a little bit of time until finally, you got the Series A in place. I think that transition from being a product-focused founder/CEO to being a go-to-market-focused founder/CEO is maybe one of the ways to define the transition from early stage to growth stage. Thursday, April 1st, 2021 - 12:35 am. It was an incredibly distracting thing that we had mistakenly deployed into all these classrooms. Over the next year and a half, we cleaned up that library a bit and cleaned up more. Right? Its hard work to pick the few things that really matter. : Very cool. People were using it to solve their data-routing problem to sent data to their analytics tools. Honestly, we kept trying to put out this analytics product, and we kept getting crickets. 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. $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. Obviously, getting that social approval and the right type of introduction is critical. : I have four things, and theyre mapped exactly to our values. : We reflect on our company goals every quarter. 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. 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. By. : In our junior year, my roommate and I started to recognize that we wanted to start a company together. Segment's new CFO Sandra Smith and CEO Peter Reinhardt. We actually built a lot of stuff that ended up not being useful. French-Owen: Actually, Peter, I think you said this once. What does that look like? Moreover, I also provided a commentary on a pitch deck from an Uber competitor that has raised over $400 million (see it here). And it wasn't the last time the team considered feedback. Finally, Im sure this was a big breakthrough for you guys from understanding the value of being able to listen to your target audience. It turned out the analytics space is incredibly crowded. Taking what could be their last chance with the money they had left, the co-founders paused and started to reflect on what they were taught at Y Combinator. Bloomberg Daybreak, anchored from New York, Boston, Washington DC and San Francisco provides listeners with everything they need to know. I think the tough learning or humbling learning there was like the world doesnt care what you think. Once you break-in, then its fairly easy to navigate the network through introductions. It wasn't Segment yet, right? In terms of growth, recruiting, and bringing people into the company, that, for me, has been a big on-mark. Once again, ACCOs International segment fared best with sales up 5.7% (on a 7.5% rise in [], Driven by the July 2022 merger with Neenah, Inc., Q4 net sales jumped 69.1% year-over-year to $660.1 million. Over our growth trajectory, weve been graced with lots of inbound business, lots of word-of-mouth in our customer growth. The Good and the Bad From the Factory Floor, Critics of Bidens Antitrust Push Target FTCs Lina Khan, FBI Documents Show Leonardo DiCaprio, Kim Kardashian Grilled for 1MDB Secrets, Subaru, Nintendo Step Up for LGBTQ Workers in Conservative Japan, Record Number of Singapores New Director Roles Filled by Women, UK Mothers Say It No Longer Makes Financial Sense to Work, Transcript Zero Episode 29: Turning Climate Risks Into Golden Opportunities, Pain in the Butt: Study Finds Forever Chemicals in Toilet Paper, The 15-Minute City Freakout Is a Case Study in Conspiracy Paranoia, Another Blow to City Centers: Retail Stores Move Outward, Singapore Crypto Lender Hodlnaut's Founders Propose Selling Business Rather Than Liquidating Firm, Former Chief Executive Officer/Co-Founder, Segment Inc. Peter, thank you so much for being on the DealMakers show today. How do you go about embracing culture, and what are some of the key lessons there that you could share with the people listening? Peter Reinhardt: 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. 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. Like, Classrooms should be digitized. Kendall Vanderslice (Goodreads Author), Peter Reinhart (Foreword) 4.48 avg rating 25 ratings 2 editions. We built the landing page and posted it on Hacker News. 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 clearly failing on this sort of customer sales side of things, and we were just spending all of our time building, building, building. Net Worth in 2022: $1 Million - $5 Million: Salary in 2022 . Dollar-based net expansion rate was 139 . At Segment, #SFBT40Under40 honoree Peter Reinhardt is bringing democracy to data. Then, how did you develop this love for aerospace? How can they position scheduling that meeting and keeping the fundraising conversation in the background so that they can target the discussion more towards seeking advice and then later on getting the money price, but making sure that its not going into that direction yet? Why are so many SaaS founders taking money from Founderpath.com instead of VC`s? Its like a snowball effect kind of thing? In fact, "Y Combinator let us find out recently that they actually didn't think much of the idea, but thought we were a good team," Reinhardt says. We had six or eight months of runway. Master breadmaker Peter Reinhart is also a teacher, author and theologian. 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. Peter Reinhardt - https://twitter.com/reinpk - is cofounder and CEO of Segment - https://segment.com/ Segment helps companies capture data from every custome. Analysts that would go straight to the data. Theyre already sold on you. Then, I think when you get those right execs, then they can build out whole teams. It turned out the analytics space is incredibly crowded. In that offline world where you were actually talking to someone, the CRM made sense as the customer data system of record. "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. Filter by State in . Thats probably most of the reflection process. Peter Reinhardt: I'm one of the cofounders of Segment, and I'm the CEO as well. 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. Alejandro Cremades leads the vision and execution for Panthera Advisors as its Co-Founder and. 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. Why? Alejandro: Amazing. Its hard for them to assess the strategy with a clear head. 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. Whats that transition from early stage to growth stage where you guys are. People should have all these great feedback loops. They meet with entrepreneurs to invest. Segment revenue is $144 million Segment is worth $3.2 billion valuation Segment team size is 584 employees. How did you go about that? Peter, the people that are listening are probably wondering How do I get the attention from an investor because obviously investors are in the game of investing. by. : 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. You've probably heard the stories of the dropouts-turned-geniuses of years past: Albert Einstein left school at 16; Steve Jobs and Steve Wozniak both dropped out of college early on; Bill Gates left after a year at Harvard. It sounds like fun. 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. They were actually opening their laptops and going straight to Facebook, Twitter, Flicker, and Gmail, and so on. : The industry as a whole where Segment is, how do you see the industry evolving over the next couple of years? Peter Reinhardt is still very much interested in things related to space. An internationally renowned expert on bread and baking, Peter Reinhart is an instructor at Johnson & Wales University and a TED Talks speaker. We were really excited about this. Like, sure, sales is one channel of the 20 I just mentioned, but its just one of 20. What Now for a Fed That Has Fallen Behind theCurve Again? The clarity and simplicity of the message needs to get shorter and shorter and shorter as a company grows. : 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. 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? What does that look like? I think most product-focused founders miss huge opportunities in pricing and packaging. 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. 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. Peter Reinhardt, co-founder and CEO of Segment, shares his story on building different products and eventually finding product market fit. I think that in the last couple of years, over 100% growth in terms of the number of employees. Alejandro: In this case and perhaps in other situations of the business, how do you go about first, identifying the problem? "Ian was like, 'You know what, I think there's a big business behind Analytics.js and I think we should do that instead,'" Reinhardt says. : You were talking about company growth. And if you got any value either from this episode or from the show itself, share it with a friend. : Thats very powerful, Peter. They have 21000 customers an engineering team of 144 and a marketing team of 43. Perhaps they will also appreciate it. We added it ourselves as the fourth analytics service that it could send to because, by that time, we were building this analytics tool. What was the lesson that you got from that? Its hard, so you have to delay the early ones and pull forward the late ones. "It was so amazing meeting an amazing founder.". Stokes, who is worth $5.69 billion according to this year's AFR Rich List, has lived in the . Net Worth. I do find that vacation is critically important for actually going and reflecting on things. Then, we started beta testing it at the end of the summer. We realized that we had one more shot at product/market fit for something. What a Series A and from top tier guys. What happened was that we had a pricing and packaging problem. )" . 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. 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