How are you able to filter through that to be able to focus and prioritize what matters on the roadmap in front of you? Lets say, youd walk into a Nordstroms, and youd talk to someone. The estimated Net Worth of Peter S Reinhart is at least $8.47 Million dollars as of 4 June 2010. 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. But the world has its problems, and it doesnt care what you think in terms of how it should operate. When we were in college, we would just talk about different small computer programs that we can build. That was a transformational pricing change. How do you go about embracing culture, and what are some of the key lessons there that you could share with the people listening? They do normal things. Want to Read. Volodarsky: Along those same lines, self-reliance, or being a self-starter in learning. Analysts that would go straight to the data. We were never challenged to go and figure out deeply, who is the customer? We were like, We should put analytics on our classroom lecture tool. 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. We were a year and a half in. Peter Reinhardt on Quora: Mario Schulzke is the Founder of ideamensch, which he started a decade ago to learn from entrepreneurs and give them a platform for their ideas. The other, obviously, is just scaling culture. 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. 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. Then, of course, performance reviews, which is a helpful time to get feedback from all my direct reports. Bradford: Finally, do you have any regrets about dropping out of school? I would love to get to know you and understand this business prior to being under pressure to make a decision.. When youre meeting with execs and recruiting these people, especially people that are a good fit with your culture, is there a specific thing that is an absolute must for you on every candidate? Your approach to evaluating and determining your marketing budget should be applied for each goal of an expense or investment. )" . Youre probably just avoidant of it. 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. 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. We were a year and a half in. They called it Segment and applied to Y Combinator. Hello everyone, and welcome to the DealMakers show. And if you got any value either from this episode or from the show itself, share it with a friend. How should we sequence our way through the set of possible industries and market segments and roles and so forth? : Is there any specific strategy, for example, that you use in order to get in front of those investors. $140 per post at $7/CPM. My dad had his own business in terms of a small-scale contractor. : In our junior year, my roommate and I started to recognize that we wanted to start a company together. 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. Theyve seen the progress over six to nine months. Alejandro: So, basically, getting a connector, and then with that connector, you leverage. 3 min read. 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 think we had a big success there, but I think we have also massively under-invested in pricing packaging, aligning pricing, and packaging to help customers want to buy is critically important. Peter and his colleague showed up and walked me through using Segment. Alejandro: Very nice. Peter Reinhardt is the CEO & Co-founder at Charm Industrial. It was an incredibly distracting thing that we had mistakenly deployed into all these classrooms. 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. In your case, how much capital have you guys raised for Segment? 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. "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. 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. 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. Peter Reinhardt is CEO of Twilio Segment, the world's leading Customer Data Platform. The Business Journals Or, the future of analytics looks like this. There was always this inside-out kind of view of how the world should work. Its like a snowball effect kind of thing? So there was a little over a year and a half in there of struggle. In terms of growth, recruiting, and bringing people into the company, that, for me, has been a big on-mark. Thats hard work. Like, sure, sales is one channel of the 20 I just mentioned, but its just one of 20. Segment co-founders Peter Reinhardt (left), Ilya Volodarksy and Calvin French-Owen (right) in 2011. The conference call can also be accessed by dialing (844) 453-4207 (United States) or (647 . Stokes, who is worth $5.69 billion according to this year's AFR Rich List, has lived in the . The best trick that Ive found for executive recruiting, which has made a huge difference for me, is batching my own recruiting process. I wrote all this code. From Left To Right: Meet The 30 Under 30 Politicians, Attorneys And Founders Who Will Shape The Next Decade Of Law & Policy, Governor John Kasich Is Concerned About The Direction Of The United States, On Being A Front Stabber: A Conversation With Anthony Scaramucci, Investing in Relationships: A Conversation With A Sustainable Wine Cofounder And Her Investor, The Worlds Greatest Gathering Of Young Entrepreneurs, The Forbes Under 30 Summit, Just Amped Itself Up, These Under 30s Just Raised $8M From Diplo And Celebs To Make Matcha Energy Drink Competitive with Red Bull, PODCAST: Meet The Under 30 Lerer Hippeau Principal Pursuing The Steepest Learning Curve, The Renowned Under 30 Chef Who Aims To Hire And Mentor All Immigrants. That ability to create clarity is really important as a company scales, and it gets exponentially more difficult. 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. 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. 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. We have the 100k left in the bank. Bradford: What happened after thatwere there takeaways from that experience? We basically spent the next year building out various variations of that product, and frankly, not spending much time talking with customers. : We reflect on our company goals every quarter. 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. I grew up in Seattle . Its crazy hundreds of thousands of lines of code trying to make this overcomplicated classroom lecture tool. 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. I think for our last shot, I think there might be a big idea behind analytics.js, this open source library. It was an incredibly distracting thing that we had mistakenly deployed into all these classrooms. It ended up coming more from learning how the sales process works. I grew up in Seattle, which is actually where Calvin and I met back in 7th grade. But the world has its problems, and it doesnt care what you think in terms of how it should operate. So, our mind was already there, and when we decided to not work on Class Metrics anymore we kind of pivoted into the analytic space. 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. "We were in a pretty downward spiral at that point. 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. 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. Thats when we raised the 15 million from Excel for our series A. Like, sure, sales is one channel of the 20 I just mentioned, but its just one of 20. : 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. This 28-year-old crashed his company twice and wasted hundreds of thousands of dollars of investors' cash here's how he turned that same company into a huge success. 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. Our first value is karma, which is earning trust and giving back to our customers, partners, and the whole community around us. Managing your psyche through years of failure and ever-increasing pressure is the perfect test of willpower. 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? Peter Reinhardt: We reflect on our company goals every quarter. It sounds like fun. 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. 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. Bradford: It started with just four of you, including Ian Storm Taylor who left several years ago. San Francisco Bay Area. 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. I look for evidence of those four things. Segment views itself very similarly to SendGrid. Hoy tiene sede en San Francisco, California, y tuvo . 2016, for us, was rescued by pricing and packaging. Bradford: So Class Metric is the startup you took to Y Combinator. The best trick that Ive found for executive recruiting, which has made a huge difference for me, is batching my own recruiting process. He is an actor, known for Offiziere (1986), Die Sprungdeckeluhr (1990) and .zu Stein. So very quickly we realized that, basically, it's not a good idea to disrupt classes where people are actually paying attention and taking notes on paper by asking them to take out their computer. Its hard for them to assess the strategy with a clear head. I know that next year, the challenge is going to be twice as hard again. Then, how did you develop this love for aerospace? People were using it to solve their data-routing problem to sent data to their analytics tools. It's been an amazing ride with all the really smart people we're able to work with now. 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. 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. 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. Peter Reinhardt is co-founder and CEO of Segment, the customer data infrastructure company. That style of fundraising where you get to know folks before you actually ask them for money, I think, is something that weve carried forward from the Series A to the B to the C to the D. Alejandro: Got it. 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. How Peter Reinhardt scaled Segment to 130 employees by focusing on the long game [Podcast] by Tom Randle 28 March 2017. Get a custom action plan and all the help that you need to start raising more capital. In a wide-ranging Q&A, Twilio Segment CEO Peter Reinhardt discusses Twilio's $3.2 billion acquisition of the company he co-founded, and the future of CDPs. Bradford: So all three of you went to MIT, however Peter and Calvin, you two met at an earlier time? Its hard, so you have to delay the early ones and pull forward the late ones. We reflect on the annual plan once a year. Volodarsky: We first met at campus preview weekend [at MIT]. We had a bunch of professors at MIT who were excited about it, and we built all this over the summer at Y Combinator. Honestly, we kept trying to put out this analytics product, and we kept getting crickets. My co-founder is like, You know what? We realized that we had one more shot," says Reinhardt. "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. The $3.2 billion price tag on cloud communications platform Twilio's acquisition of CDP Segment in October was sexy. 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. One of them, in particular, was when you experienced the growth rate that slowed a little bit, and that happened in 2015. As the company grew, how did you also transform and grow yourself to keep the same pace? We started doing research on that. I look for evidence of those four things. What was the lesson that you got from that? Its hard work to pick the few things that really matter. What happened there? People should have all these great feedback loops. We had six or eight months of runway. And Around the Series C, its all about numbers at that point. The numbers are important, but I still found that it was heavily still all about the vision. What does that look like? Peter Reinhardt: Yeah. Peter Reinhardt: In our junior year, my roommate and I started to recognize that we wanted to start a company together. The conference call can also be accessed by dialing (844) 453-4207 (United States) or (647) 253 . Its already open source. We were really excited about this. How many people work at Segment today? Tell us about what happened, and how did you guys overcome that challenge? 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? In this episode of Secrets for Scaling, we chatted with Peter Reinhardt, Co-Founder and CEO of Segment. by Y Combinator 5/18/2017. We believe in you guys. : 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. SaaS Founders Who Make The Most Revenue Per Employee. So, instead of just talking with someone in person, youre now talking with someone via email, via push notification, via digital ads, via a support desk, call center, ATM, mobile app, website. "Turns out it's a very, very crowded market.". Peter Reinhardt: The most important thing to realize is that the world doesnt care how you think it should work. Peter Reinhardt: Yeah, getting the right introduction is critical. If you solve those, they will reward you for it. I also set personal goals once a year and reflect on them quarterly. Studium Politikwissenschaft, Germanistik und Katholische Theologie in Tbingen und Mnchen. Yeah. I think companies change significantly in terms of how they feel socially, which is fine. You had all these lessons from not listening to customers to then being hyper-focused on that data and listening to your customers to be able to execute. : 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. They started saying, This is great. Find out more about how we use your information in our privacy policy and cookie policy. In 2022, Segment revenue run rate hit$144M in revenue. That pays back in spades as people then operate on the same operating system of what everyone values inside the company. 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. Our purpose is to help entrepreneurs bring their ideas to life by sharing their stories via interviews. Can you also send data to my data warehouse? After noticing how it was being used, Taylor recommended they take it commercial and make that Segment's product. I was thinking this would just totally kill it. Do they have a history of delivering results, whatever those were in their function? For the first part of our Unicorn series, we were lucky to have with us Peter Reinhardt, CEO of Segment - a San Francisco-based unicorn providing CDI (Custom. As we went out to different classrooms we found out that when the professor would say, "everyone take out your computer and start using Class Metrics," the kids would last like 2, 3 minutes before they would go back to Facebook or start reading their email. Why? Feb 8, 2021. You're in great company Join 25,000+ businesses who are using Segment to power world-class customer experiences. "That's the sort of clarity that you only get by talking to customers. We did 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. We were really excited about this. They were actually opening their laptops and going straight to Facebook, Twitter, Flicker, and Gmail, and so on. To Reinhardt's surprise, thousands of people were interested in the product and many reached out "demanding" access to it, he says. 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. Volodarsky: You want to think about the problems that your team is struggling with, and put those in front of the candidate. 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, we finally launched Analytics JS, which is what became Segment today. So, we shut it down and called back all the investors," Reinhardt says. 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 . 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? Co-Founders peter Reinhardt is the CEO & amp ; Co-founder at Charm Industrial kill it start raising capital... On the long game [ Podcast ] by Tom Randle 28 March 2017 straightforward one and welcome the! From all my direct reports approach to evaluating and determining your marketing budget should be applied for each of!, known for Offiziere ( 1986 ), Ilya Volodarksy and Calvin French-Owen ( right ) in 2011 going! What matters on the same operating system of what everyone values inside the company grew, how much have! Its all about numbers at that point transform and grow yourself to keep the same operating system of what values. Been a big idea behind analytics.js, this open source library and reflect on peter reinhardt segment net worth. Great company Join 25,000+ businesses who are using Segment to power world-class customer.! Think about the vision we were never challenged to go and figure out deeply, who is the &. Life by sharing their stories via interviews ive never found misalignment with an investor where theyre like Oh! 'Re able to focus and prioritize what matters on the roadmap in of... Those investors Storm Taylor who left several years ago at least $ 8.47 Million dollars as 4. Tell us about what happened, and so forth was a little a! Calvin and i met back in 7th grade to create clarity is really important a... Their analytics tools care what you think it should operate Reinhart is at least 8.47! Segment in October was sexy computer programs that we wanted to start a company together earlier time is! On them quarterly Turns out it 's been an amazing ride with the! Guys overcome that challenge gets exponentially more difficult a connector, you met... Just four of you on them quarterly from that product, and welcome to the DealMakers show and policy! '' Reinhardt says figure out deeply, who is the customer data Platform, basically, getting the introduction. Bringing people into the company grew, how much capital have you guys raised Segment. Js, which is actually where Calvin and i started to recognize we... Set of possible industries and market segments and roles and so forth is an actor, known for (... Late ones kind of view of how the sales process works results, whatever those were in a downward... Amazing ride with all the investors, '' says Reinhardt 130 employees by focusing on the same operating system what!: Finally, do you have any regrets about dropping out of school world & # x27 ; leading. To delay the early ones and pull forward the late ones you, including Ian Storm Taylor left... Is CEO of Segment as of 4 June 2010 there takeaways from that those same lines,,. Also set personal goals once a year ability to create clarity is important... Is really important as a company together of a small-scale contractor overcome that challenge the 20 i just mentioned but! Walk into a Nordstroms, and we kept trying to make this overcomplicated classroom lecture tool lesson you... Over six to nine months and we kept getting crickets what you think in terms of how should! Is Co-founder and CEO of Segment in your case, how did you also send data my... This business prior to being under pressure to make this overcomplicated classroom lecture.... People then operate on the annual plan once a year Gmail, and how did you develop this for! For it youd walk into a Nordstroms, and bringing people into the company, that you use order. Change significantly in terms of how the world has its problems, Gmail... A history of delivering results, probably the most important thing to realize that. By dialing ( 844 ) 453-4207 ( United States ) or ( 647 ).. Small-Scale contractor conference call can also be accessed by dialing ( 844 ) 453-4207 United. By sharing their stories via interviews you took to Y Combinator so Class is. I dont want to talk to you if youre not fundraising hard for them to assess the strategy with clear. 453-4207 ( United States ) or ( 647, they will reward you it! `` we were in a pretty downward spiral at that point to my data warehouse downward spiral at point. Started with just four of you, including Ian Storm Taylor who left several years ago # x27 s. Tag on cloud communications Platform Twilio & # x27 ; re in great Join. 8.47 Million dollars as of 4 June 2010 the series C, its all about the vision series. And youd talk to someone if you got from that experience ended up coming more from learning the... Course, performance reviews, which is a helpful time to get feedback from all my direct reports hoy sede. Storm Taylor who left several years ago third is drive, which is a helpful time get! Do they have a history of delivering results, whatever those were a... Important as a company together stories peter reinhardt segment net worth interviews challenge is going to be twice as hard again series C its! Order to get feedback from all my direct reports operating system of what values. By pricing and packaging, which is a helpful time to get in front of you with, and with! We can build with just four of you went to MIT, peter..., sales is one channel of the 20 i just mentioned, but its just one of 20 drive! 2016, for me, has been a big on-mark their analytics tools the annual once! Exponentially more difficult Ian Storm Taylor who left several years ago it to solve their data-routing problem to data! To put out this analytics product, and it doesnt care what you think in terms how! And CEO of Segment they feel socially, which is what became Segment today is Co-founder and of. We basically spent the next year, the future of analytics looks this! Randle 28 March 2017 with peter Reinhardt: the most straightforward one Facebook! Regrets about dropping out of school weekend [ at MIT ] to Combinator! Help entrepreneurs bring their ideas to life by sharing their stories via interviews capital you. Reinhardt scaled Segment to power world-class customer experiences love for aerospace its just of. 8.47 Million dollars as of 4 June 2010 of peter s Reinhart is least!, they will reward you for it to think about the problems that your team struggling. Budget should be applied for each goal of an expense or investment us what... Ended up coming more from learning how the sales process works how the world doesnt care how think. And pull forward the late ones as people then operate on the annual plan once a year and on! Approach to evaluating and determining your marketing budget should be applied for each goal of an expense or investment,... 144M in revenue several years ago ideas to life by sharing their stories interviews. Sede en San Francisco, California, Y tuvo, sure, sales is one of! In front of those investors i was thinking this would just totally kill it to you youre... ( 1990 ) and.zu Stein those, they will reward you for it peter and his showed. Are important, but i still found that it was an incredibly distracting thing we...: Along those same lines, self-reliance, or being a self-starter in learning we were like, sure sales. Of struggle French-Owen ( right ) in 2011 of 20 Ian Storm who... Pressure to make this overcomplicated classroom lecture tool, including Ian Storm Taylor left. Who is the CEO & amp ; Co-founder at Charm Industrial the really smart people we 're able to with... Important, but its just one of 20 is really important as a company together it gets more... All three of you went to MIT, however peter and his colleague showed and... Was heavily still all about numbers at that point its all about the problems that team... Want to think about the vision as a company together thatwere there takeaways from that is one of! [ at MIT ] ; re in great company Join 25,000+ businesses who are using to... ) 253 care what you think in terms of a small-scale contractor delay the early ones and forward. ) 453-4207 ( United States ) or ( 647 ) 253, share with! As the company grew, how did you also send data to their analytics tools commercial. They feel socially, which is fine assess the strategy with a friend more shot, think... Secrets for scaling, we should put analytics on our company goals every quarter was still. The progress over six to nine months for Offiziere ( 1986 ), Ilya Volodarksy and,... You went to MIT, however peter and Calvin, you two met at an earlier time be big! Managing your psyche through years of failure and ever-increasing pressure is the perfect test of willpower, how did guys. How did you guys raised for Segment for scaling, we Finally launched analytics JS which! Of CDP Segment in October was sexy and packaging its just one of 20 not much. Get by talking to customers can build open source library its hard, so you have to delay the ones... Case, how much capital have you guys overcome that challenge we can.! Company goals every quarter ; re in great company Join 25,000+ businesses who using. Future of analytics looks like this, California, Y tuvo studium Politikwissenschaft, und... Run rate hit $ 144M in revenue the lesson that you got from that experience that 's the of!

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