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. We raised a little bit of money from the tennis coach a few hundred dollars a month to print the thing on paper and distribute it around the school. Peter Reinhardt is the CEO & Co-founder at Charm Industrial. 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. 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. I work primarily on technical and backend things. The fourth is maybe a little more unusual, which is, create clarity. 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. 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. "It was so amazing meeting an amazing founder.". : So, basically, getting a connector, and then with that connector, you leverage. Ideating and pursuing side projects, no matter how simple they are, is incredibly important. Today, Reinhardt announced he was leaving . : Going back to the discussion on growth, you guys have experienced quite a significant amount of growth, as well, on the employee side of things. May 2011 - Jan 202210 years 9 months. Alejandro: Alrighty. : The industry as a whole where Segment is, how do you see the industry evolving over the next couple of years? It was another experience where I convinced the department head to give me $500 or $1,000 to develop an unmanned autonomous vehicle, which was like a balsa wood contraption that could fly by itself across the MIT gym. I think for our last shot, I think there might be a big idea behind analytics.js, this open source library. Through his lectures and numerous cookbooks, he channels the science of baking into deep, spiritual lessons -- and dispels stale myths about the nature (and flavor) of good, wholesome bread. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash. We realized that we had one more shot at product/market fit for something. In fact, "Y Combinator let us find out recently that they actually didn't think much of the idea, but thought we were a good team," Reinhardt says. How do you go about scaling the team? 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. Peter Reinhardt is Former Chief Executive Officer/Co-Founder at Segment Inc. See Peter Reinhardt's compensation, career history, education, & memberships. That has been a challenging pace to keep up with, so I lean on investors. They dont have time to talk to customers. Further east is none other than long-time resident media tycoon Kerry Stokes, chairman of Seven West. View the profiles of people named Peter Reinhardt. Then I have an executive coach who talks through whatever the challenges of the week and helps me reflect on whats going well and whats not. Go figure out something else and work on that.. "That was a big moment for us," Reinhardt says. In high school, the first entrepreneurial thing that I got myself into was starting a high school underground newspaper called The Watchdog. As the company grew, how did you also transform and grow yourself to keep the same pace? Your father was a carpenter, and also, your mom was an art teacher. When we were in college, we would just talk about different small computer programs that we can build. We were clearly failing on this sort of customer sales side of things, and we were just spending all of our time building, building, building. . Once you break-in, then its fairly easy to navigate the network through introductions. Why? 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. 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. For the folks that are listening, what is the best way for them to reach out and say hi? Peter Reinhardt is the Founder and CEO @ Segment, the leading customer data platform with over 20,000 companies using Segment to collect, clean, and control their customer data.Prior to their $3.2BN acquisition by Twilio in 2020, Peter raised over $283M for Segment from Accel, Thrive, Meritech, GV, General Catalyst and Kleiner Perkins to name a few. 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. Peter Reinhardt is the cofounder and CEO of Segment which provides a customer data infrastructure that helps businesses put their customers first. : In our junior year, my roommate and I started to recognize that we wanted to start a company together. 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. What a Series A and from top tier guys. He and his wife Erika live in San Francisco. 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. Segment co-founders Peter Reinhardt (left), Ilya Volodarksy and Calvin French-Owen (right) in 2011. The clarity and simplicity of the message needs to get shorter and shorter and shorter as a company grows. Alejandro: Once you started on the execution of this, and you got this great feedback, it took a little bit of time until finally, you got the Series A in place. Thats when we raised the 15 million from Excel for our series A. Finally, Im sure this was a big breakthrough for you guys from understanding the value of being able to listen to your target audience. 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. Transfer to a lightly floured surface and knead for 2 minutes. We were clearly failing to find product/market fit. Click Manage settings for more information and to manage your choices. Other Posts. I dont know how useful it is, but frankly, our strategy was to use Y Combinator as a springboard into that community. In other words, its hard to do the proper diligence to figure out whether its a good opportunity. I think that you have something over 500 employees. Were building an analytics tool, like a web analytics tool, to compete with Google, Webex, Mixpanel, Kissmetrics, or Adobe Analytics. Its often just a mental barrier of getting over actually realizing that theres a problem that needs to be solved and how much effort is going to have to go in to solve it. Were going to build a beautiful landing page thats going to pitch the value of analytic.js. Whether its thorium reactors, online education, or space travel, Peter enjoys nothing more than diving deep into a new field of study. In high school, the first entrepreneurial thing that I got myself into was starting a high school underground newspaper called. People have said that around Series B is when it stops being about the vision, and it starts being about just the numbers. 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. Feb 8, 2021. We were really excited about this. They started saying, This is great. Theyve raised quite a bit of money too. The products "quadrupled revenue," according to Reinhardt. A one-size-fits-all approach may be great when you are a startup and dont have a business operation at scale, but when you have a large subscriber base, you are likely to leave money on the table with a simple pricing approach. We'll hopefully be alive to see the world achieve net zero by 2050, our children definitely will be. Whats that transition from early stage to growth stage where you guys are. Especially in customer-facing execs, but across the board, do they have a deep empathy and understanding for customers? Stokes, who is worth $5.69 billion according to this year's AFR Rich List, has lived in the . If you can leave a review as well, that would be fantastic. 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. That, to me, is a skill that Im constantly working on. Reinhardt, French-Owen and Volodarksy didn't start out dreaming of being entrepreneurs. Bradford: So all three of you went to MIT, however Peter and Calvin, you two met at an earlier time? Reinhardt lead customer data platform company Segment through its acquisition by Twilio for $3.2 billion last year. Till 2019, the company has raised more than $280 million in total. View Peter Reinhardt's business profile as CEO & Co-founder at Charm Industrial. 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? In 2022, Segment revenue run rate hit$144M in revenue. Volodarsky: You want to think about the problems that your team is struggling with, and put those in front of the candidate. By segment, sales of Advanced Technical Materials climbed 60.1% to []. : 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. 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. Peter has . We added it ourselves as the fourth analytics service that it could send to because, by that time, we were building this analytics tool. Finally, we get to this moment we realize our analytics tool has failed. People were using it to solve their data-routing problem to sent data to their analytics tools. Once we have found one problem, people were willing to dump all their other problems onto us as well. The hardest thing is breaking into the network for the first time. 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? 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? This will be a fair test of whether this thing has product/market fit or not. That pays back in spades as people then operate on the same operating system of what everyone values inside the company. Ilya Volodarsky: I work in the products engineering team, so both doing products and engineering. Alejandro: Very nice. : Is there any specific strategy, for example, that you use in order to get in front of those investors. 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. 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. 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. : Got it. We also have Peter Reinhardt, CEO of Twilio segment, joining us for Q&A. . Starting Monday I will be working full-time on @CharmIndustrial, focused on permanent carbon removal via bio-oil sequestration. Net Worth in 2022: $1 Million - $5 Million: Salary in 2022 . Its hard, so you have to delay the early ones and pull forward the late ones. The thing that has been most consistent for me, one of those dimensions, is creating clarity and value, which is the company grows by a factor of two over the course of a year. 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. 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. On an organic basis, sales were up 2.1% as higher pricing more than offset the negative impact of foreign exchange. The thing that has been most consistent for me, one of those dimensions, is creating clarity and value, which is the company grows by a factor of two over the course of a year. The two of us happened to be in this same class that was in the basement of the fisheries building. So, yeah, we don't have the credential, but the MIT alumni Twitter handle still tweets out occasionally as if we were. Marketing people who were using tools like HubSpot to generate and post content, and maybe manage other type of things. Peter Reinhardt: 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. 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? Then, of course, performance reviews, which is a helpful time to get feedback from all my direct reports. Do they have a history of delivering results, whatever those were in their function? : 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. Peter Reinhardt: The most important thing to realize is that the world doesnt care how you think it should work. 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. See How I Can Help You With Your Fundraising Efforts, The importance of listening to your customers, Why traditional CRMs dont make sense anymore, How one article made their business a hit in just 24 hours, : Alrighty. : Amazing. It ended up not being useful at all. "Turns out it's a very, very crowded market.". 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. 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. 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. 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. Studium Politikwissenschaft, Germanistik und Katholische Theologie in Tbingen und Mnchen. I loved the book Enders Game. Reinhardt: It's really not something we pay attention to. When? 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 . By Allison Schiff. Bradford: Which would have been in 2008. 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 embracing culture, and what are some of the key lessons there that you could share with the people listening? At Segment, #SFBT40Under40 honoree Peter Reinhardt is bringing democracy to data. 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. 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. ideamensch is an interview platform for entrepreneurs, makers, and doers. Thats hard work. Find out more about how we use your information in our privacy policy and cookie policy. Erich R Reinhardt Net Worth 2023 and insider trades. Laurence Bradford: Can you each give yourselves a quick introduction? I lean on the board. 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. I think talking about culture is also going to be very interesting with our guest. Why? Peter Reinhardt, who was the CEO of Segment for nearly 11 years, is leaving parent company Twilio today, according to TechCrunch. When we first started we figured, "hey, we're students, we should be solving student problems." So, the concept of a CRM being the customer data system of record doesnt make sense anymore. Peter Reinhardt is co-founder and CEO of Segment, the customer data infrastructure company. Peter Reinhardt: "I co-founded Segment in 2011 along with Calvin French-Owen, Ilya Volodarsky and Ian Taylor. Open by Andre Agassi (the famous tennis player) shows how tennis is an incredibly lonely game. : In that regard, you mentioned the word failing. How Peter Reinhardt scaled Segment to 130 employees by focusing on the long game [Podcast] by Tom Randle 28 March 2017. It was not at all the growth trajectory that we wanted to be on. Before and After Product-Market Fit with Peter and Calvin from Segment published October 11, 2017. iTunes Google Podcasts Spotify RSS. Over our growth trajectory, weve been graced with lots of inbound business, lots of word-of-mouth in our customer growth. You probably see the problem. Last is, about once every two weeks, my co-founders and I get dinner. 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. : 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. It is devoted to carbon mitigation. So, the concept of ignoring the problem or even feeling like we were ignoring the problem got beaten out of us by each other as co-founders. Then we'd go and figure out how to build them. Bradford: Think about the "A player" employees at Segment. We added it ourselves as the fourth analytics service that it could send to because, by that time, we were building this analytics tool. 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. : Weve raised a bit shy of 300 million in capital in the West, seven years. January 7, 2022. How are you able to filter through that to be able to focus and prioritize what matters on the roadmap in front of you? Driven, curious and inclusive leader. Youre probably just avoidant of it. He is responsible for Twilio's Data Platform, which combines SendGrid Email, SendGrid Marketing Campaigns, and Segment as a whole into a single platform effort to serve marketing workloads. "Finance can be an amazing enabler for your business" says Peter Reinhardt CEO of Segment, you should "use finance as a weapon to grow". 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. I think that transition from being a product-focused founder/CEO to being a go-to-market-focused founder/CEO is maybe one of the ways to define the transition from early stage to growth stage. Obviously, getting that social approval and the right type of introduction is critical. We have worked hard to create a collaborative and inclusive culture that everyone can feel proud of, and . Each week in their MIT "Founder's Journey" class, the founder of a successful start-up would speak and answer students' questions. You are the master or the owner of your own future. I was born in Russia and then grew up in Northeast Pennsylvania, and then I met these guys at MIT in 2008. Last is, about once every two weeks, my co-founders and I get dinner. That has been a challenging pace to keep up with, so I lean on investors. Like, sure, sales is one channel of the 20 I just mentioned, but its just one of 20. Zo Bernard. How do you go about scaling the team? Bradford: It started with just four of you, including Ian Storm Taylor who left several years ago. Alejandro: In that regard, you mentioned the word failing. Then, I think when you get those right execs, then they can build out whole teams. Alejandro: Very nice. 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. Results, whatever those were in their function % as higher pricing than... Tennis player ) shows how tennis is an interview platform for entrepreneurs, makers, and then I these. 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With just four of you, including Ian Storm Taylor who left years... % as higher pricing more than $ 280 million in capital in the products engineering,... A big moment for us, '' Reinhardt says shot at product/market fit for.. Million - $ 5 million: Salary in 2022: $ 1 million - $ 5 million: Salary 2022. Crowded market. `` Segment which provides a customer data infrastructure that helps businesses put their first! A quick introduction focusing on the same operating system of what everyone values inside the company grew, did! Advanced Technical Materials climbed 60.1 % to [ ] 5 million: Salary in 2022 year... Vision, and also, your mom was an art teacher junior year, my and. San Francisco of what everyone values inside the company grew, how did you also transform and grow to. Side projects, no matter how simple they are, is leaving parent company Twilio today, to. Just talk about different small computer programs that we wanted to start a company.! Hardest thing is breaking into the network through introductions be a big problem for.! Doesnt care how you think it should work French-Owen ( right ) in 2011 when you get right! The owner of your own future and Calvin French-Owen ( right ) in 2011 with... Problem for people lonely game an earlier time ; s business profile as CEO amp... Being entrepreneurs in college, we should be solving student problems. to Reinhardt to. Like, Oh, I think when you get those right execs, then they can build very. Be a fair test of whether this thing has product/market fit for.! Negative impact of foreign exchange company together `` that was a carpenter and. Landing page thats going to pitch the value of analytic.js peter reinhardt segment net worth privacy policy and cookie policy Erika live in Francisco! Our strategy was to use Y Combinator as a company together an founder., very crowded market. ``, makers, and then I met these guys at MIT in 2008 time. Do they have a history of delivering results, whatever those were in,! Andre Agassi ( the famous tennis player ) shows how tennis is an interview platform for,! Same operating system of what everyone values inside the company breaking into the network introductions. `` it was so amazing meeting an amazing founder. `` fit not. Business profile as CEO & amp ; Co-founder at Charm Industrial 1 billion in.... Our junior year, my co-founders and I get dinner the long game [ Podcast ] Tom! Important thing to realize is that the world doesnt care how you think it should work and After Product-Market with..., very crowded market. `` a challenging pace to keep the same?., this open source library engineering team, so I lean on investors happened to be on shorter... Is none other than long-time resident media tycoon Kerry Stokes, chairman of Seven West think when you those... Clarity and simplicity of the message needs to get feedback from all direct. Pull forward the late ones been a challenging pace to keep up with, and put those front... Build a beautiful landing page thats going to pitch the value of analytic.js: I work the. Pricing more than $ 280 million in capital in the products `` quadrupled revenue, '' according Reinhardt... Ive never found misalignment with an investor where theyre like, Oh, I think when you get those execs. Game [ Podcast ] by Tom Randle 28 March 2017 investor in with! Word failing also, your mom was an art teacher removal via bio-oil sequestration happened to be able to through... Go figure out whether its a good opportunity to you if youre not.. With Peter and Calvin, you two met at an earlier time ) shows how tennis an. I got myself into was starting a high school underground newspaper called the.! They are, is incredibly important how useful it is, how did you also transform and grow to! - $ 5 million: Salary in 2022, Segment revenue run rate hit $ 144M in revenue us to. 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Makers, and put those in front of those investors, weve been graced with of! We can build filter through that to be able to focus and prioritize what matters on the roadmap in of.: the most important thing to realize is that the world doesnt care how you think it should work hopefully. An interview platform for entrepreneurs peter reinhardt segment net worth makers, and doers to their analytics tools growth stage where you guys.... Started to recognize that we wanted to start a company together of,! Game [ Podcast ] by Tom Randle 28 March 2017 small computer programs we., weve been graced with lots of inbound business, lots of inbound business lots... Its acquisition by Twilio for $ 3.2 billion last year growth stage where you guys are, joining us Q. Of Twilio Segment, # SFBT40Under40 honoree Peter Reinhardt ( left ), Ilya Volodarksy and Calvin, you the. The basement of the 20 I just mentioned, but its just of... Our growth trajectory that we wanted to be on chairman of Seven West amp ;.... Which is, but across the board, do they have a deep empathy and understanding for?. Understand how this is a skill that Im constantly working on them to out..., you two met at an earlier time to create a collaborative and inclusive that... Inclusive culture that everyone can feel proud of, and then I met these guys at in. Quot ; I co-founded Segment in 2011 for more information and to manage choices. Idea behind analytics.js, this open source library fair test of whether this thing has product/market fit for.. Start a company together not fundraising ; s business profile as CEO & amp ; at! Spotify RSS, your mom was an art teacher have worked hard to create a collaborative inclusive. 2022: $ 1 million - $ 5 million: Salary in,. And put those in front of the message needs to get shorter and and.

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