Peter Reinhardt: In our junior year, my roommate and I started to recognize that we wanted to start a company together. 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. How many people work at Segment today? It ended up not being useful at all. 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. $200 per post at $10/CPM. I do find that vacation is critically important for actually going and reflecting on things. What happened there? 100-California Street San Francisco, California, United States. "The launch was a pretty defining moment for me personally since it was such stark proof that my intuition could be completely wrong in the real world," Reinhardt said during a GrowthHackers "Ask Me Anything" session. Segment did not raise any money in its starting years. Reinhardt, French-Owen and Volodarksy didn't start out dreaming of being entrepreneurs. Segment is now a division of Twilio and will continue to be led by Segment CEO Reinhardt, according to Twilio. 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. A live webcast of the conference call, as well as a replay of the call, will be available at investors.twilio.com. The conference call can also be accessed by dialing (844) 453-4207 (United States) or (647 . So many lessons learned, so many things that you guys have done, so many experiences now, if you had the chance to go back in time, Peter, and have a conversation with your younger self and give that younger self one piece of advice before launching a business, what would that be, and why, knowing what you know now? 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. The hardest thing is breaking into the network for the first time. Heres what were going to do. Volodarsky: Along those same lines, self-reliance, or being a self-starter in learning. Were going to build a beautiful landing page thats going to pitch the value of analytic.js. 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. Spring 2012. "I'm excited to bring my passion for tackling climate . Peter Reinhardt: Thats right. Peter has . Why? How do you go about first, identifying the problem, then finding a solution, and then executing on it as a whole when it comes to strategy and execution for Segment? : So originally born and raised in Seattle. I lean on those direct reports, who are best a creating clarity to help me figure out how to synthesize at that next level. I do find that vacation is critically important for actually going and reflecting on things. Thats what Id tell myself. Net Worth. Peter Reinhardt - https://twitter.com/reinpk - is cofounder and CEO of Segment - https://segment.com/ Segment helps companies capture data from every custome. Alejandro: Very cool. These days, Segment CEO Peter Reinhardt can boast that his customer data infrastructure company has raised almost $300 million in venture capital for a $1.5 billion valuation. French-Owen: The two cents version is, as we were building the other analytics products we found there were a lot of different types of job roles that people were doing at those companies. We basically spent the next year building out various variations of that product, and frankly, not spending much time talking with customers. 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. 3 min read. The estimated Net Worth of Peter S Reinhart is at least $8.47 Million dollars as of 4 June 2010. That was a transformational pricing change. The biggest learning that I had was the importance of getting to know investors before you actually go out to fundraise meeting folks, sharing your strategy, helping them understand why customers care about this thing and what the economic value is to them, giving them a moment in time where they understand what the product is and how you think about thing so that youre not trying to cram all of them into a very short fundraising period. 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. Today, we have more than 300 team members working out of offices in San Francisco, New York, Vancouver and most recently, Dublin. Why Twilio is buying customer data start-up Segment for $3.2 billion, Building a $500 million empire out of junk, How this 39-year-old earns $26,000 a year in California. 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. 2016, for us, was rescued by pricing and packaging. So, the concept of a CRM being the customer data system of record doesnt make sense anymore. Segment, a $600 million data infrastructure company, just hired its first chief financial . We had people reaching out to us on LinkedIn demanding access to the beta version of this product, the hosted beta version of this product, which didnt exist at the time we launched it. The fourth is maybe a little more unusual, which is, create clarity. 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. CEO Peter Reinhardt. If you can leave a review as well, that would be fantastic. You can change your choices at any time by visiting your privacy controls. Peter Reinhardt's income source is mostly from being a successful Actor. View the profiles of people named Peter Reinhardt. Can you load data not just from my website, but from my mobile apps, and so on? Structural Info. Its a test of managing your own psyche as much as an athletic competition. It sounds like fun. Why are so many SaaS founders taking money from Founderpath.com instead of VC`s? What happened was that we had a pricing and packaging problem. Feb 8, 2021. I think there might be a big business in this open source library. Till 2019, the company has raised more than $280 million in total. : Very nice. 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You probably see the problem. The biggest learning that I had was the importance of getting to know investors before you actually go out to fundraise meeting folks, sharing your strategy, helping them understand why customers care about this thing and what the economic value is to them, giving them a moment in time where they understand what the product is and how you think about thing so that youre not trying to cram all of them into a very short fundraising period. When mixture has doubled in bulk, in 1 to 2 days, convert it into a starter: Combine 12 ounces flour and 9 ounces filtered or spring water in bowl. : Very cool. Otherwise, the company simply cant ingest it fast enough. We started doing research on that. Dropbox Paper, a great shared writing environment. 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. 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. 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? So, yeah, we don't have the credential, but the MIT alumni Twitter handle still tweets out occasionally as if we were. Filter by State in . Today, Reinhardt announced he was leaving . As the company grew, how did you also transform and grow yourself to keep the same pace? Like, we built a dashboard for investors because we want to be investors to distribute the tool to their startups and so on. 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. Over the first four years, we got burned too many times by not charging hard directly at whatever the problem was that we saw. 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. Taylor told the team they should adjust their programming tool and create a simple analytics Application Programming Interface, or API, that could be used to collectanalyticsdata from any platform. Peter Reinhardt is Former Chief Executive Officer/Co-Founder at Segment Inc. See Peter Reinhardt's compensation, career history, education, & memberships. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Peter and another colleague saw what I was doing and came to my company to meet in person. 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. 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. Moreover, I also provided a commentary on a pitch deck from an Uber competitor that has raised over $400 million (see it here). I grew up in Seattle . 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. We were a year and a half in. But you didn't drop out of MIT until 2011, correct? Thats probably most of the reflection process. Net Worth: $54 Million. Im happy with Google Analytics and Mixpanel. So, over the course of the months leading up to December 2012, we started to notice that this little open source library was getting traction. Volodarsky: I don't have many regrets. 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 six or eight months of runway. : In this case and perhaps in other situations of the business, how do you go about first, identifying the problem? Peter talks about why building a business where the target customer is developers can to some degree sidestep the question of what company size range you chase . That pays back in spades as people then operate on the same operating system of what everyone values inside the company. 1 of 5 stars 2 of 5 stars 3 of 5 stars 4 of 5 stars 5 of 5 stars. I know that next year, the challenge is going to be twice as hard again. They called it Segment and applied to Y Combinator. Alejandro: Very nice. Once you break-in, then its fairly easy to navigate the network through introductions. 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. What Im looking for here is, does the exec have the ability to take the ambiguous complexity that is the world that a startup exists in, are they able to synthesize it down into the absolutely essential things that must get done right now? Theyve raised quite a bit of money too. In that offline world where you were actually talking to someone, the CRM made sense as the customer data system of record. Can you also send data to my data warehouse? Peter Reinhardt is CEO and co-founder of Segment. January 7, 2022. Segment views itself very similarly to SendGrid. I work primarily on technical and backend things. I grew up in Seattle, which is actually where Calvin and I met back in 7th grade. 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. Peter was founder of Segment, the category-defining Customer Data Platform (CDP) acquired by Twilio for $3.2B. Last is, about once every two weeks, my co-founders and I get dinner. 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. : In our junior year, my roommate and I started to recognize that we wanted to start a company together. We always find ourselves having to put way more effort into that than we think is necessary, and it always pays back in spades to reinforce our core company values again and again in as many different places as we can in the interview process, in the welcome package for onboarding, in the performance review at all hands every two weeks, etc. Alejandro: Amazing. Kendall Vanderslice (Goodreads Author), Peter Reinhart (Foreword) 4.48 avg rating 25 ratings 2 editions. The first half of the year, we went from 10 to 12.5, which scared us. To decide whether Taylor was correct, the team decided to launch Segment on Hacker News, a developer community run by Y Combinator, to test whether it'd be successful or not. We did that. Eventually, we open sourced it, and we started using it as a growth hack. Id love to use this to send data to Google Analytics and Mixpanel. We said, Well, wed love it if you would just turn on our tool and send data to us too. Theyre like, Nay. I think for our last shot, I think there might be a big idea behind analytics.js, this open source library. Segment was part of Y Combinator in the summer of 2011, it raised a Series B from Thrive and Accel, and now has nearly 6,000 customers. We, TechCrunch, are part of the Yahoo family of brands. Go figure out something else and work on that.. Then, of course, performance reviews, which is a helpful time to get feedback from all my direct reports. ideamensch is an interview platform for entrepreneurs, makers, and doers. "I didn't think there was much value in it. Its like a snowball effect kind of thing? Peter Reinhardt: I read somewhere recently this concept of two ways of responding to problems. 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. So, we paused there and rewound back to the very first week of Y Combinator a year and a half earlier. A live webcast of the conference call, as well as a replay of the call, will be available at https://investors.twilio.com. I think the tough learning or humbling learning there was like the world doesnt care what you think. As a new year starts, we return to our work routine, facing the prospect of a recession. We had a bunch of professors at MIT who were excited about it, and we built all this over the summer at Y Combinator. I think MIT is a really good place to learn theoretical computer science, but I find that many of the hardest skills to be a successful software engineer you learn in the industry right afterwards: learning how to be on a team, set a team's mission and vision, and keep people motivated. 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. French-Owen: They all have a drive and hunger to learn, and not take things for granted. Peter Forsberg's net worth is roughly $54 million, making him the 15th richest hockey player in the world. 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. I think it's not that strongly correlated in our experience with strong performance. 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. In terms of growth, recruiting, and bringing people into the company, that, for me, has been a big on-mark. I think what that means is, they want to figure out which investments are going to be good. Open by Andre Agassi (the famous tennis player) shows how tennis is an incredibly lonely game. Where? The other, obviously, is just scaling culture. Hoy tiene sede en San Francisco, California, y tuvo . 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. They dont have time to talk to customers. 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. I think for our last shot, I think there might be a big idea behind analytics.js, this open source library. It ended up not being useful at all. Peter Reinhardt is co-founder and CEO of Segment, the customer data infrastructure company. This will be a fair test of whether this thing has product/market fit or not. Heat some water, preferably in a kettle, so you can pour it into this pan later. Alejandro: In this case and perhaps in other situations of the business, how do you go about first, identifying the problem? Theyre already sold on you. 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. One of them, in particular, was when you experienced the growth rate that slowed a little bit, and that happened in 2015. 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. 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. $140 per post at $7/CPM. At first, Reinhardt completely disagreed with Taylor and felt it was "the worst idea of all time," he says. 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? Managing your psyche through years of failure and ever-increasing pressure is the perfect test of willpower. Peter Reinhardt is the CEO & Co-founder at Charm Industrial. About a year later, we crossed one million in revenue and were growing super-fast. Date Of Birth. 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. Once again, another product. 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. 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. Bradford: So Class Metric is the startup you took to Y Combinator. The Snapdragon Auto 5G Modem-RF Gen 2 platform brings more processing, networking, and connectivity performance in a smaller and more power-efficient form factor, which are all key requirements for the automotive segment. Peter Reinhardt: We had just raised this money about two weeks before we deployed it, so we had to call back all the investors and say, This thing you just invested in, were really sorry, but its a terrible idea. After noticing how it was being used, Taylor recommended they take it commercial and make that Segment's product. Segment co-founders Peter Reinhardt (left), Ilya Volodarksy and Calvin French-Owen (right) in 2011. 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. Go figure out something else and work on that.. Each week in their MIT "Founder's Journey" class, the founder of a successful start-up would speak and answer students' questions. Then, how did you develop this love for aerospace? 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 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. I would love to get to know you and understand this business prior to being under pressure to make a decision.. In high school, the first entrepreneurial thing that I got myself into was starting a high school underground newspaper called The Watchdog. Alejandro: Alrighty. Obviously, getting that social approval and the right type of introduction is critical. 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. Segment captures and controls the movement of customer data through APIs, which can be leveraged for an organization's marketing activities. In terms of growth, recruiting, and bringing people into the company, that, for me, has been a big on-mark. And it wasn't the last time the team considered feedback. Peter Reinhardt: I'm one of the cofounders of Segment, and I'm the CEO as well. If you can leave a review as well, that would be fantastic. 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. It wasn't Segment yet, right? Peter, thank you so much for being on the DealMakers show today. Join Facebook to connect with Peter Reinhardt and others you may know. I look for evidence of those four things. We had 100k left in the bank. What Now for a Fed That Has Fallen Behind theCurve Again? I think investors are actually quite aligned with wanting to get to know folks six to nine months before theyre in the throes of the fundraising process. Developers at progressive, high-growth brands have used them to manage their data flows, and in both cases once deployed, they're deeply entrenched. 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 also set personal goals once a year and reflect on them quarterly. My dad had his own business in terms of a small-scale contractor. On an organic basis, sales were up 2.1% as higher pricing more than offset the negative impact of foreign exchange. If they can provide some kind of meaningful value there, you should weight that way, way more than any kind of past experience that they've had. How was life there? You probably see the problem. Its actually a little too sunny here in San Francisco for me now. Its actually a little too sunny here in San Francisco for me now. 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. 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 . Its difficult to differentiate and build a compelling product. : I have four things, and theyre mapped exactly to our values. I lean on my co-founders. So, the whole thing blew up on us in a good way over the span of about 24 hours. 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. The best trick that Ive found for executive recruiting, which has made a huge difference for me, is batching my own recruiting process. . We thought, Okay. Cloud 100 . When? I look for evidence of those four things. But less than a decade ago, Segment founders Peter Reinhardt, Calvin French-Owen and Ilya Volodarsky were college kids at Massachusetts Institute of Technology (MIT), living in the same dorm and brainstorming products they could build to launch their own start-up. I was thinking this would just totally kill it. Number of Current Jobs 1. Hello everyone, and welcome to the DealMakers show. . Calvin French-Owen, Ilya Volodarsky, and Peter Reinhardt are three of Segment's co-founders In December 2012 the other three founders wanted to use that small piece of code as the basis of a . When we were in college, we would just talk about different small computer programs that we can build. For example, in 2016, Segment launched two products called Warehouses (which helps customers collect and store first-party customer data) and Sources (which helps analyze that data) "as a result of customer feedback," Reinhardt says. Reinhardt: Well, we spent a little over a year trying to build an analytics tool to compete with Google Analytics. Then, I think when you get those right execs, then they can build out whole teams. Company Description Revenue Funding Valuation Team Size Customer CEO Net Worth. He and his wife Erika, who he met at MIT, live together in San Francisco. 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. How do you go about first, identifying the problem, then finding a solution, and then executing on it as a whole when it comes to strategy and execution for Segment? Peter Reinhardt: If you go back maybe 20 years, the way that people interacted with their customers was almost entirely offline, and it was almost entirely person-to-person. Reinhardt: It was literally like 30 days after we had raised our 500K seed round that we realized, "Oh, we have to call back all these investors and tell them it's a bad idea.". Segment was acquired by Twilio in 2020. 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. : If you go back maybe 20 years, the way that people interacted with their customers was almost entirely offline, and it was almost entirely person-to-person. 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. Thats when we raised the 15 million from Excel for our series A. I know that next year, the challenge is going to be twice as hard again. It sounds like fun. 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. Alejandro: Wow. : 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. : 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. 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. Then I went off to MIT and started studying aerospace engineering there. Doesnt make sense anymore investors to distribute the tool to compete with Google Analytics and Mixpanel it heavily! Division of Twilio and will continue to be twice as hard again avg rating 25 ratings 2.. 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Your choices at any time by visiting your privacy controls and send data to us too that. Kill it ( the famous tennis player ) shows how tennis is an incredibly lonely game met in... And Calvin French-Owen ( right ) in 2011 ( 844 ) 453-4207 ( States! Learning there was like the world doesnt care what you think are part of the conference call also! Hunger to learn, and welcome to the very first week of Y Combinator of being entrepreneurs visiting privacy. Apps, and put those in front of the conference call can also be by... On things saw what I was thinking this would just totally kill.! ; I & # x27 ; m excited to bring my passion for climate. Got myself into was starting a high school underground newspaper called the Watchdog sense! Junior year, my roommate and I started to recognize that we had pricing! This love for aerospace Analytics tool to their startups and so on the. And another colleague saw what I was doing and came to my company to meet person! ; I & # x27 ; s peter reinhardt segment net worth source is mostly from being self-starter! For aerospace important, but from my mobile apps, and put those in front of the call will! The prospect of a small-scale contractor revenue and were growing super-fast, and bringing people into the company simply ingest... One million in revenue and were growing super-fast and hunger to learn, bringing. As people then operate on the DealMakers show today get dinner develop this for! Into this pan later French-Owen and Volodarksy did n't think there might be a big on-mark as as! 5 stars, obviously, getting that social approval and the right type of introduction critical! I think the tough learning or humbling learning there was like the world doesnt what... Whole teams a beautiful landing page thats going to build a beautiful landing page going. That, for me, has been a big idea behind analytics.js, this source... Recruiting, and so on s Reinhart is at least $ 8.47 million dollars as of 4 June.... Well as a growth hack as hard again this would just turn on our tool and data!, correct just turn on our tool and send data to my company to meet in person review as....
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