Kendall Vanderslice (Goodreads Author), Peter Reinhart (Foreword) 4.48 avg rating 25 ratings 2 editions. Its hard work to pick the few things that really matter. Peter Reinhardt: Yes, investors are in the business of making good investments, not just investing. Can you also send data to my advertising tools? May 2011 - Jan 202210 years 9 months. How to Find Product Market Fit - Peter Reinhardt. 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. Join Facebook to connect with Peter Reinhardt and others you may know. 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. 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. 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 . By digitizing financial services, focusing on underserved segments of the population, building trust and relationships with customers and leveraging blockchain technology, fintech companies can help to make financial services more accessible and affordable for those who need them most. 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. 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. 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? Peter Reinhardt was born on July 30, 1950 in Leipzig, East Germany. On an organic basis, sales were up 2.1% as higher pricing more than offset the negative impact of foreign exchange. As a result, the co-founders were able to retain all but two investors. We believe in you guys. : In our junior year, my roommate and I started to recognize that we wanted to start a company together. They decided to focus on "building something for uses that we could test quickly," 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. It rains a lot in Seattle, so I grew up with the idea that the rain outside was normal. So it was a really fast growth year. 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. I lean on the board. The clarity and simplicity of the message needs to get shorter and shorter and shorter as a company grows. "We created Segment to help businesses set themselves apart in the digital age and deliver rich, connected customer experiences built on high-quality data. 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. In high school, the first entrepreneurial thing that I got myself into was starting a high school underground newspaper called The Watchdog. : 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. Travel enthusiast. In our conversation, we cover Segment's fascinating journey from an education feedback tool to the business it is today, Peter's sales philosophy on meeting the customer where they are and not where you think they should be, and why revenue . Twilio, a CX platform vendor with a customer service bent, acquired Segment, a marketing-oriented customer data platform, for . At Segment, #SFBT40Under40 honoree Peter Reinhardt is bringing democracy to data. It ended up not being useful at all. So, we shut it down and called back all the investors," Reinhardt says. We started doing research on that. Dateability aims to be the first dating app for the long-term disabled and chronically ill to offer a modern and compassionate user experience to a diversity segment that has traditionally been invisible and underserved in the world of online dating. : 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. Segment revenue is $144 million Segment is worth $3.2 billion valuation Segment team size is 584 employees. Date Of Birth. 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. 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. What happened there? 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 loved the book Enders Game. We were never challenged to go and figure out deeply, who is the customer? At first, Reinhardt completely disagreed with Taylor and felt it was "the worst idea of all time," he says. 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. Segment remains Twilio's largest acquisition to date. 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. I wrote all this code. Remember to unlock for free the pitch deck template that is being used by founders around the world to raise millions below. All Rights Reserved. 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. Our purpose is to help entrepreneurs bring their ideas to life by sharing their stories via interviews. Facebook gives people the power. You don't get that by trying to be intuitive," he said. 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. 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. Peter Reinhardt is the cofounder and CEO of Segment which provides a customer data infrastructure that helps businesses put their customers first. I lean on my co-founders. Peter Reinhardt - https://twitter.com/reinpk - is cofounder and CEO of Segment - https://segment.com/ Segment helps companies capture data from every custome. Reinhardt: Well, we spent a little over a year trying to build an analytics tool to compete with Google Analytics. My co-founder is like, You know what? 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? Segment CEO Peter Reinhardt says they've grown to a team size of 584 since launch in 2011 and have raised $283.7M in funding. I said, That is literally the worst idea Ive ever heard. Peter Reinhardt, Segment's CEO, has spoken publicly about being the data infrastructure for the next generation of marketing tech. Erich R Reinhardt Net Worth 2023 and insider trades. Find Peter's email address, mobile number, work history, and more. The conference call can also be accessed by dialing (844) 453-4207 (United States) or (647 . 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. 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. We started doing research on that. 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. 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. If you solve those, they will reward you for it. Cloud 100 . Forsberg is known for being one of the best players of all time. It ended up competing with the official high school newspaper, so that was a lot of fun. For you, personally, what does that reflection process look like? In fact, before MIT, the friends didn't know much about start-up culture. How did that go? Sales people who were reaching out to the customers and emailing them directly, tracking them within Salesforce. By segment, U.S. sales rose 1.3% to $2.43 billion as . Theyve raised quite a bit of money too. As of 2023, Peter Frampton's net worth is roughly $20 million. Peter Reinhardt's income source is mostly from being a successful Actor. 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. Alejandro: So, basically, getting a connector, and then with that connector, you leverage. What happened was that we had a pricing and packaging problem. 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. 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. Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. Bradford: Is that when you guys started Segment, then? I recall booking the largest, most impressive conference room we had and a 10AM meeting. 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. 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. Other Posts. 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. So, yeah, we don't have the credential, but the MIT alumni Twitter handle still tweets out occasionally as if we were. Peter Reinhardt: Yeah. Peter Reinhardt on Github: Peter and another colleague saw what I was doing and came to my company to meet in person. Net sales for the final quarter of 2022 grew 2.2% from the prior year to $4.13 billion. We spent all our time iterating on the product, trying to build something that we thought people might find exciting. Peter Reinhardt: I think the world that we see ourselves and all our customers moving towards is one where all of the data across all of their customer touchpoints is collected and synthesized into a modern customer data system of record, and thats what were trying to build. Can you also send data to my data warehouse? Its 500 lines of code. French-Owen: Yeah, we actually met at this summer math class that was being held in Seattle at the University of Washington. : We reflect on our company goals every quarter. Opinions expressed by Forbes Contributors are their own. We were like, We should put analytics on our classroom lecture tool. What does that look like? Aug 4, 2018 . 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. 2020 ideamensch. 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. We reflect on the annual plan once a year. Your father was a carpenter, and also, your mom was an art teacher. 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. We were clearly failing to find product/market fit. Over our growth trajectory, weve been graced with lots of inbound business, lots of word-of-mouth in our customer growth. We have the 100k left in the bank. Today, we have more than 300 team members working out of offices in San Francisco, New York, Vancouver and most recently, Dublin. Open by Andre Agassi (the famous tennis player) shows how tennis is an incredibly lonely game. Moreover, I also provided a commentary on a pitch deck from an Uber competitor that has raised over $400 million (see it here). We work in different parts of the company now, but that dinner is a helpful time to reflect on whats working, whats not working, and what each of us can improve and do better. Peter Reinhardt: Yeah, getting the right introduction is critical. Banking-as-a-Service companies are in for a tough ride this year. Alejandro: Wow. Especially in customer-facing execs, but across the board, do they have a deep empathy and understanding for customers? Especially in venture, they get very few chips to place, and they want to make those chips well-placed. 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? So, the concept of a CRM being the customer data system of record doesnt make sense anymore. Analytics.js had become increasingly popular among developers after the team shared it on GitHub, an opensource developer platform. He and his wife Erika live in San Francisco. It turned out the analytics space is incredibly crowded. : Very cool. There are dozen and dozens and hundreds of analytics companies. SaaS Founders Who Make The Most Revenue Per Employee. We realized that we had one more shot at product/market fit for something. Perhaps they will also appreciate it. Can you load data not just from my website, but from my mobile apps, and so on? : Makes sense. Alejandro: Thats very powerful, Peter. 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. That said, I do think the founder CEOs attention shifts dramatically post-product/market fit. I think there might be a big business in this open source library. I think what that means is, they want to figure out which investments are going to be good. We started building a ton of infrastructure. If you want me to do your fundraising for you, click here. Otherwise, the company simply cant ingest it fast enough. Now, youve been at it for quite a while with the business, and everything started back in 2011. 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