Key insights

• Funding and Future Challenges

  • 💰 Raised Series A funding led by Bessemer and co-led by Goldman Sachs and Citi
  • 📊 Specialize in alternative data analysis, particularly credit card data
  • 🎯 Focus on solving specific problems for a limited number of companies
  • ⚔️ Challenged to stay ahead of the game with increasing competition

• Data Processing and Sales Approach

  • ⚙️ Using machine-based approaches for entity resolution and location determination in data processing
  • 📊 Building a pipeline for raw data ingestion and an analytics platform for clean data sets
  • 📈 Growing corporate customer base for competitive analysis using the platform
  • 👨‍💼 Rethinking focus based on the 'jobs to be done' theory
  • 📈 Inbound-driven sales process with emphasis on virality

• Challenges in Data Analysis

  • ❗ Assumptions about data being perfect can lead to distorted findings
  • 🔀 Challenges in normalizing credit card data due to multiple representations and processing perturbations
  • 🔍 Diligence in identifying and addressing data problems to avoid distorted conclusions

• Data Science and Employee Focus

  • 📊 Feeding product backlog through internal assessment, proactive customer engagement, custom research, and editorial team involvement
  • 🔍 Seeking data scientists with strong quantitative backgrounds and a focus on first principles
  • 👩‍🔬 Hiring employees who can approach open-ended problems and tackle them systematically
  • 🔬 Interview process includes a significant technical evaluation, such as analyzing and presenting a messy data set

• Consumer Behavior Analytics

  • 📝 Dedicated editorial team tracks data and spending behavior of customers
  • 👗 Stitch Fix customers spend more on clothes after using the service
  • 🚴 Peloton surpasses SoulCycle in monthly active members
  • 📦 Amazon Prime subscribers are increasingly important for Amazon's revenue

• Company Focus and Offerings

  • 📊 Second Measure provides insights into consumer spending behaviors and company performance
  • 📉 Focus on metrics like company performance, competitive intelligence, and consumer behavior
  • 📰 Collaboration with the press and offering customized research projects

• Empowering Data Analysis

  • 🔨 Empowering designers with tools for data analysis
  • 💸 Recognizing the value of transactional data for investors
  • 👥 Utilizing direct consumer observations for insights
  • 🤝 Acquiring initial customers through YC connections and pitching product capabilities to VCs

• Evolution of Business Idea

  • 💳 Initial idea of using credit card data for investment decisions
  • 🔄 Evolution to working with companies
  • 💡 Realization of opportunity based on friend's struggle with data analysis at a hedge fund
  • 📈 Information edge for investors

Q&A

• What is the company's main challenge in the market?

  The company's challenge is to stay ahead of the game with increasing competition in the market.

• What was the outcome of the company's Series A funding round?

  The company raised Series A funding led by Bessemer and co-led by Goldman Sachs and Citi, specializing in alternative data analysis, particularly credit card data.

• What strategy is the company rethinking based on the 'jobs to be done' theory?

  The company's sales process has been largely inbound-driven, and they are rethinking their focus based on the “jobs to be done” theory.

• How is the company using a machine-based approach for data processing?

  The company is using machine-based approaches for entity resolution and location determination in data processing. They are building a pipeline for raw data ingestion and an analytics platform for clean data sets.

• What are the challenges associated with working with data, as mentioned by the company?

  The challenges include assumptions about data perfection leading to distorted findings, normalization challenges in credit card data, and the need for diligence in identifying and addressing data problems to avoid distorted conclusions.

• What characteristics does the company seek in data scientists during the hiring process?

  The company seeks individuals with strong quantitative backgrounds, a focus on first principles, and a solid foundation in statistics. They also focus on hiring employees who can approach open-ended problems, structure and decompose them, and tackle them systematically.

• How does the company feed its product backlog?

  The company feeds its product backlog through internal assessment, proactive customer engagement, conducting custom research based on recurring requests, and leveraging the editorial team for dogfooding.

• What companies have been tracked by the dedicated editorial team for spending behavior?

  The dedicated editorial team tracks data and analyzes spending behavior of customers like Stitch Fix, Peloton, SoulCycle, and Amazon Prime.

• What services does Second Measure provide?

  Second Measure provides insights into consumer spending behaviors and company performance, with a focus on metrics like company performance, competitive intelligence, consumer behavior, and cohort analysis. They also collaborate with the press and offer customized research projects.

• How did the company acquire its initial customers?

  The company acquired initial customers through Y Combinator connections and pitched the product's capabilities to venture capitalists (VCs).

• What led to the realization of a huge opportunity for the company?

  The idea stemmed from a friend's struggle with data analysis at a hedge fund, leading to the realization of a huge opportunity in providing an information edge for investors.

• How did the company evolve from using credit card data for investment decisions?

  The company transitioned to working with companies and recognized the value of transactional data for investors.

• What was the initial idea behind the company's use of credit card data?

  The founders initially used credit card data to assist investors in making better investment decisions.

• 00:00 The founders initially used credit card data to help investors make better investment decisions. They transitioned to working with companies as well. The idea stemmed from a friend's struggle with data analysis at a hedge fund, leading to the realization of a huge opportunity in providing information edge for investors.
• 06:44 Developed tools for designers to analyze data themselves rather than depending on an intermediary, recognized the value of transactional data for investors, leveraged direct consumer observations and tools to provide insights instead of traditional survey methods, acquired initial customers through YC connections and pitched the product's capabilities to VCs.
• 13:20 Second Measure, a data analytics company, provides insights into consumer spending behaviors and company performance, particularly in the consumer market segment, with a focus on metrics like company performance, competitive intelligence, consumer behavior, and cohort analysis. They collaborate with the press and also offer customized research projects.
• 19:55 A dedicated editorial team tracks data and analyzes spending behavior of customers like Stitch Fix, Peloton, SoulCycle, and Amazon Prime. Stitch Fix customers spend more on clothes after using the service. Peloton surpasses SoulCycle in monthly active members. Amazon Prime subscribers are increasingly important for Amazon's revenue.
• 27:07 The company feeds its product backlog by internally assessing their application, proactively engaging with customers, conducting custom research based on recurring requests, and leveraging the editorial team for dogfooding. When hiring data scientists, they seek individuals with strong quantitative backgrounds, a focus on first principles, and a solid foundation in statistics. The company focuses on hiring employees who can approach open-ended problems, structure and decompose them, and tackle them step by step. Their interview process includes a significant technical evaluation, such as providing a messy data set for analysis and presentation.
• 33:53 Understanding the complexities of working with data, including assumptions and variations in data representation; challenges in normalizing credit card data due to human input and processing perturbations; the need for diligence and awareness of data problems to avoid distorted findings.
• 40:50 The team is using a machine-based approach to handle multiple aspects of data processing, including entity resolution and location determination. They are building a pipeline for ingesting raw data and an analytics platform for clean data sets. The platform is being used by a growing number of corporate customers for competitive analysis. The company's sales process has been largely inbound-driven, and they are rethinking their focus based on the “jobs to be done” theory.
• 48:00 A company raises its Series A funding led by Bessemer and co-led by Goldman Sachs and Citi. They specialize in alternative data analysis, particularly credit card data. Their approach differs from traditional data companies and they focus on solving specific problems for a limited number of companies. The company's challenge is to stay ahead of the game with increasing competition in the market.