In an enlightening conversation on the 20 minutes VC, host Harry Stebbings interviews Jeff Seibert, Senior Director of Product at Twitter and co-founder of Crashlytics. Seibert shares his journey from a self-taught programmer to a successful entrepreneur, reflecting on the acquisitions of his startups In Crayo by Box and Crashlytics by Twitter. He emphasizes the importance of aligning with an acquirer's culture and strategic vision, ensuring continued investment in the product post-acquisition, and maintaining a balance between transparency and focus within a team during the acquisition process. Seibert also discusses his current role at Twitter, where he's excited about upcoming improvements to the platform, advocating for a mission-driven approach to entrepreneurship and the value of authentic connections in business.
"Well, joining us today is an absolutely phenomenal entrepreneur and currently senior director of product at Twitter, Jeff Seibert." "Prior to his role at Twitter, Jeff was the co-founder, alongside Wayne Chang, of the crash analysis tool Crashlytics, which I believe is used on over a billion devices today." "As before, Crashlytics, Jeff was the founder of Increo, which was Box's first ever acquisition in 2009."
These quotes introduce Jeff Seibert as a successful entrepreneur with a significant impact on the tech industry through his ventures Crashlytics and Increo, both of which were acquired by major companies.
"I grew up in Baltimore, Maryland, which is not a bastion of computer technology." "In 6th grade, my parents sort of out of the blue, gave me the book Mac programming for dummies." "The moment that text turned orange, a light bulb went off of my head. And I thought to myself, oh, wow, I can make any piece of software that ever exists."
Jeff's early fascination with technology was ignited by a programming book his parents gave him, leading to a lifelong passion for coding and software development.
"Finished up high school in Maryland, went out to Stanford for college." "We decided, okay, let's just be a little more practical. Why don't we build something to help people share and iterate and improve on their ideas?" "And so we started a company called Increo. The name came from sort of the combination of innovation and creativity."
These quotes detail the origin of Increo, from the initial brainstorming sessions at Stanford to the practical decision to create a platform for idea sharing and collaboration.
"So, leading up to the acquisition by Box, what was it like going to Sandhill Road to raise in 2009 with the obvious financial turmoil only the year before?" "It was really a fascinating time in the valley and incredibly difficult to close any round, I think, unless you had just tremendous revenue growth and numbers."
These quotes capture the challenging fundraising environment during the financial crisis of 2009, which ultimately led to Increo's acquisition by Box.
"You said there you had six months left to raise that funding. Do you think you possibly waited too long and left too little time, and so you were put in a rather desperate position? Or was it more the fact that the macroeconomic conditions were extremely tough and there was no investment around at the time?"
This quote prompts a reflection on the timing of fundraising efforts and the impact of external economic factors on the ability to secure investment.
"I'd say we had the right amount of time to raise money, which was six months. And if you look on the data, the average round takes four to six months to close."
This quote emphasizes the importance of having realistic expectations when it comes to the timeframe for securing funding.
"So we decided, hey, okay, what if we accelerate charging? What if we strike a bunch of big partnership deals? We can power document preview. We could license our technology."
This quote highlights the strategic thinking behind trying to find alternative revenue streams or partnerships to extend the company's financial runway.
"Completely? Yes, because they were well aware that we had a very weak negotiating position because of our Runway."
This quote confirms that time constraints can weaken a company's position in acquisition negotiations.
"And so, as we were going through this, we were very, very transparent with the team, not only about the Runway, which I think you should be transparent about, but exactly what the different options were and how they were going."
This quote illustrates the potential downside of being too transparent with the team about every aspect of the company's situation.
"My belief on acquisitions and ipos, for that matter, exits of any kind, is that they are not about exiting. The entire point is to become more successful at your mission."
This quote explains that the goal of an acquisition should be to further the company's mission, not just to exit, and this should be communicated to the team.
"And we had had a bunch of conversations with Twitter. They were already using crashlytics. And so that's exactly right. When they approached us as an acquisition, we didn't understand the point."
This quote reflects the initial hesitation and eventual realization of strategic alignment that led to the decision to sell Crashlytics to Twitter.
"And so they had a really, really deep understanding of how mobile development was scaling, how they believed it would continue to scale over the next few years." "It was a combination of sort of the confidence gained by their deep understanding and their plan to succeed in that environment." "And so they were willing to make crashlytics free."
These quotes highlight the team's comprehensive grasp of the industry's trajectory and their strategic approach to align with market trends, which was integral to their growth and acquisition strategy.
"And the biggest lessons I've learned from Twitter, and to be clear, they are incredibly professional at doing acquisitions." "It's really key for the long term success of the deal for the acquiring company to be completely open about why they are doing it." "Our biggest lesson from was, was not being able to guarantee future investment in the technology."
Jeff Seibert stresses the importance of transparency and strategic alignment in acquisition deals, and how these factors contribute to the long-term success of the acquisition.
"Boston was actually deeply supportive and deeply excited." "We went with a Boston firm, Flybridge, which led our investments."
The quotes reflect the supportive nature of Boston's startup ecosystem and the strategic decision to secure funding from both local and West Coast investors to bolster Crashlytics' growth.
"Wayne had a really deep understanding of technology, despite being more on the business side." "This guy executes like crazy."
These quotes illustrate the importance of a co-founder's technical understanding and execution ability, which were critical factors in Jeff's decision to partner with Wayne.
"What we didn't anticipate as a startup was that large companies also go through periodic reorgs." "What I would have done, in retrospect, is sought some commitment to continue to report to that person for x"
The quote emphasizes the need for foresight in acquisition negotiations, particularly regarding the stability of the reporting structure to ensure the acquired company's continued success and alignment with corporate priorities.
"I would have sought some sort of maybe six or nine month commitment to stay at that level so that we could really integrate into the company, understand what was going on, and then identify the best place to report into."
The quote highlights Jeff's perspective on the need for a defined period post-acquisition to effectively integrate and stabilize within the new company structure.
"What Twitter offered the opportunity to do is to leverage their name, which we thought was critically important and would make us sort of the de facto standard in the space, and the ability to offer the product for free."
The quote explains the strategic decision behind selling Crashlytics to Twitter, focusing on the advantages of brand association and the goal of universal, free distribution to solve mobile bugs.
"As you start looking at companies to potentially join forces with, I would put culture above anything else."
The quote underscores the significance Jeff places on company culture when merging with another organization, suggesting it's a critical factor in the success of an acquisition.
"Honestly, it was actually returning to Stanford this fall and speaking."
This quote reflects on Jeff's personal sense of achievement and the meaningful experience of contributing to an academic community that played a role in his past.
"I'm not a fan because I deeply believe in staying true to your mission and an aqua hire, sort of. By definition, you're joining for the talent you've built up, but not the product."
The quote highlights Jeff's stance on aqua hires, emphasizing the importance of mission alignment and the potential downsides of being acquired primarily for talent rather than the product.
"We're entering a period of some really fun changes and improvements to Twitter's product."
This quote teases upcoming developments at Twitter, indicating a period of innovation and growth, while maintaining a sense of anticipation and confidentiality.