The $3.2 billion price tag on cloud communications platform Twilio's acquisition of CDP Segment in October was sexy. I also set personal goals once a year and reflect on them quarterly. 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. Alejandro: Wow. And it wasn't the last time the team considered feedback. 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. Tell us about how you guys went about the fundraising process as well. Then, how did you develop this love for aerospace? 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 the six months leading up to the Series A, we had gone from zero to a million in revenue, and we were on track to end that year at 2.5. Heres what were going to do. We thought, Okay. 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? Thats when we raised the 15 million from Excel for our series A. His father introduced him to the recordings of Belgian gypsy jazz guitarist Django Reinhardt. Forbes Lists #26. It's been an amazing ride with all the really smart people we're able to work with now. Sales people who were reaching out to the customers and emailing them directly, tracking them within Salesforce. Bradford: Give me the nutshell version: what does Segment do? 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. Segment is the world's leading customer data platform. Segment revenue is $144 million Segment is worth $3.2 billion valuation Segment team size is 584 employees. What happened was that we had a pricing and packaging problem. We raised a bit of money coming out of demo day for Y Combinator, about 600k. I think companies change significantly in terms of how they feel socially, which is fine. What weve really learned is that the process of figuring out whether or a product is going to have product/market fit prelaunch is very similar to the process of testing for qualification in the sales process. We had a bunch of professors at MIT who were excited about it, and we built all this over the summer at Y Combinator. : Yeah. : Yes, investors are in the business of making good investments, not just investing. I think if you just run straight at the problem and dig as deep as you possibly can into the problem, gather all the data that you possibly can, talk to as many people as you possibly can, the solution is probably not actually that hard. 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. 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. 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. Marketing people who were using tools like HubSpot to generate and post content, and maybe manage other type of things. Charm Industrial CEO & Co-founder Jul 2017. 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. How do you go about embracing culture, and what are some of the key lessons there that you could share with the people listening? We found 32 entries for Peter Reinhardt in the United States. Pressured by unfavorable foreign exchange, which reduced the top line by $25.5 million, and a 7.9% drop in comparable sales, net sales in the final quarter of 2022 fell 12.4% to $499.4 million. Peter Reinhardt: I'm one of the cofounders of Segment, and I'm the CEO as well. Alejandro: Then eventually, you had to put this out there. Especially in venture, they get very few chips to place, and they want to make those chips well-placed. Segment. : You had a very good problem and, obviously, explosive product/market fit, but also, its tricky because now youre getting all these different people, different feedback, and requests. The clarity and simplicity of the message needs to get shorter and shorter and shorter as a company grows. I'm currently acting as Segment's CTO, so I work a lot with AWS setup, the data pipelines, the architectural, building out new pieces of the system. Especially in venture, they get very few chips to place, and they want to make those chips well-placed. Net sales for the final quarter of 2022 grew 2.2% from the prior year to $4.13 billion. At the age of 14, he started to play in a band called the Trubeats, followed by a band called the Preachers. Where? In high school, the first entrepreneurial thing that I got myself into was starting a high school underground newspaper called The Watchdog. 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. Segment raised a Acquired of $175M at a $1.5B valuation in April 2019, Segment raised a Acquired of $2M at a $10.5M valuation in October 2013, Segment has 584 total employees and 133 sales reps that carry a quota. Feb 8, 2021. If you can leave a review as well, that would be fantastic. Our purpose is to help entrepreneurs bring their ideas to life by sharing their stories via interviews. The hardest thing is breaking into the network for the first time. Peter Reinhardt: We reflect on our company goals every quarter. But the world has its problems, and it doesnt care what you think in terms of how it should operate. We had six or eight months of runway. Alejandro: Wow. We were pretty close to a death spiral at that point," Reinhardt says. Segment has an annual churn rate of 12.00%. 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. It ended up not being useful at all. Ideating and pursuing side projects, no matter how simple they are, is incredibly important. Peter Reinhardt: I have four things, and theyre mapped exactly to our values. Peter Reinhardt's income source is mostly from being a successful Actor. 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. Otherwise, the company simply cant ingest it fast enough. "We created Segment to help businesses set themselves apart in the digital age and deliver rich, connected customer experiences built on high-quality data. Then, we deployed it into the classroom, and it was a total disaster. What was the lesson that you got from that? People have said that around Series B is when it stops being about the vision, and it starts being about just the numbers. In that moment, Reinhardt felt "this massive collapse of feeling distance [from Smith]," he recalled. Can you load data not just from my website, but from my mobile apps, and so on? Peter and another colleague saw what I was doing and came to my company to meet in person. Then I went off to MIT and started studying aerospace engineering there. We were like, We should put analytics on our classroom lecture tool. 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. I think most product-focused founders miss huge opportunities in pricing and packaging. That pays back in spades as people then operate on the same operating system of what everyone values inside the company. I would love to get to know you and understand this business prior to being under pressure to make a decision.. Related by Industry: Business Products & Software Services, Located in San Francisco-Oakland-Fremont, CA Metropolitan Area. Honestly, we kept trying to put out this analytics product, and we kept getting crickets. 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 . A live webcast of the conference call, as well as a replay of the call, will be available at https://investors.twilio.com. I look for evidence of those four things. So it was a really fast growth year. They have a large number of employees. Tell us about what happened, and how did you guys overcome that challenge? : 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. Peter Reinhardt: It was great. Filmography. He and his wife Erika live in San Francisco. Lets say, youd walk into a Nordstroms, and youd talk to someone. 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. Segment captures and controls the movement of customer data through APIs, which can be leveraged for an organization's marketing activities. Get a custom action plan and all the help that you need to start raising more capital. I would love to get to know you and understand this business prior to being under pressure to make a decision.. 3 min read. Segment's new CFO Sandra Smith and CEO Peter Reinhardt. You probably see the problem. 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. One of them, in particular, was when you experienced the growth rate that slowed a little bit, and that happened in 2015. For the folks that are listening, what is the best way for them to reach out and say hi? By 2019, the company had raised $284 million in venture capital funding and was bringing in "tens of millions of dollars in annual revenue," Reinhardt told the San Francisco Business Times in January 2019. They started saying, This is great. Calvin French-Owen: I'm Calvin, I'm another one of the cofounders at 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. 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. 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? 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? I grew up in Seattle . Peter has over 25 years of experience in professional . Last is, about once every two weeks, my co-founders and I get dinner. In your case, how much capital have you guys raised for Segment? An 85-year Harvard study found the No. Information about your device and internet connection, like your IP address, Browsing and search activity while using Yahoo websites and apps. 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. Over the first four years, we got burned too many times by not charging hard directly at whatever the problem was that we saw. I do not understand how this is a big idea. We had a huge fight as all four co-founders, and I went home and was wracking my brains trying to figure out how to kill this idea, and eventually figured it out. They are Peter Reinhardt and Calvin French-Owen, the CEO and CTO of Segment, respectively. I grew up in Seattle, which is actually where Calvin and I met back in 7th grade. In their prior roles, have they shown that they want to understand the customer and that they will go over and beyond for the customer and the broader communities around their companies previously? Then, I think when you get those right execs, then they can build out whole teams. 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. 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. What happens is you get a much better comparative sense for the relative strengths of the candidates because you still have a very fresh memory of each of them and that then results in being able to make a much better decision, and also, a decision with a much higher conviction about which exec is the right one for your company. : Is there any specific strategy, for example, that you use in order to get in front of those investors. That has been a challenging pace to keep up with, so I lean on investors. 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. Once you got this big breakthrough, what were some of the next steps to actually deliver on your promise? 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. If you want me to do your fundraising for you, click here. Proud father. It ended up not being useful at all. Segment did not raise any money in its starting years. Peter Reinhardt on Github: Facebook gives people the power. Managing your psyche through years of failure and ever-increasing pressure is the perfect test of willpower. 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 might be a big business in this open source library. By segment, sales of Advanced Technical Materials climbed 60.1% to []. 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. Its hard work to pick the few things that really matter. Last is, about once every two weeks, my co-founders and I get dinner. Its hard, so you have to delay the early ones and pull forward the late ones. 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. Then, we started beta testing it at the end of the summer. Disclamer: the number about Peter Reinhart's Instagram salary income and Peter Reinhart's Instagram net worth are just estimation based on publicly available information about Instagram's monetization programs, it is by no means . Segment is now a division of Twilio and will continue to be led by Segment CEO Reinhardt, according to Twilio. 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. Right? How many people work at Segment today? When we were in college, we would just talk about different small computer programs that we can build. 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. He and his wife Erika, who he met at MIT, live together in San Francisco. Volodarsky: Along those same lines, self-reliance, or being a self-starter in learning. We started doing research on that. Alejandro: Very cool. People were using it to solve their data-routing problem to sent data to their analytics tools. Shorter as a replay of the summer your device and internet connection, your. 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