Key insights

• ⚙️ Starting with a real problem led to the creation of Lob's API business
• 🚀 Their MVP was a basic API that mirrored the input as the output
• 📄 The importance of thoughtful documentation for API companies
• 🌐 Getting their first big client through Hacker News
• 📧 Landed a top tier client through a personalized cold email
• 💼 Approximately 15% of business from self-service customers
• 📈 Six-year journey to enterprise, first big client signed two years ago
• 💰 Competing on value by offering additional features like HIPAA compliance at an extra cost
• 🔍 Adapting to enterprise customer needs by emphasizing API accessibility
• 👥 Recruitment based on culture fit, mission, and unique equity compensation
• 🤔 Lessons learned from failed 'mugs API' deal
• 🌱 The evolution of founder roles and responsibilities as the company grows

Q&A

• What were the insights shared about the evolution of Lob as a company and the challenges faced by the founders?

  The discussion highlighted the evolution of founder roles and responsibilities, the consideration of print infrastructure ownership, and the importance of having the right partners. It emphasized the need to adapt and change as a founder and manager over the years.

• What did Lob learn from a failed deal and how did they approach negotiations with a major customer?

  Lob learned valuable lessons from a failed 'mugs API' deal and used this insight to negotiate with a major customer. Prior to developing new mail formats, they evaluate customer interest to align with market needs.

• What are the key aspects of Lob's approach to understanding customer value, API accessibility, and recruitment?

  Lob focuses on quantifying customer value, prioritizing the product roadmap, and adapting to enterprise customer needs by emphasizing API accessibility. Their recruitment is based on culture fit, mission, and unique equity compensation to keep employees invested in the long term.

• How did Lob's pricing model evolve and what influenced the shift in pricing strategy?

  Lob's pricing model evolved from traditional to a platform fee model that reflects the value of their technology. The shift in pricing strategy was influenced by customer feedback to emphasize competitiveness and offer additional features like HIPAA compliance at an extra cost.

• What is the focus of Lob's business in terms of customer segmentation and API capabilities?

  Lob primarily focuses on enterprise customers due to the extensive mail volume in the market, but also caters to self-service customers. Their API provides capabilities to smaller customers at a lesser scale.

• How did Lob land their first big client and what was the significance of this achievement?

  Lob secured their first big client through Hacker News and highlighted the importance of aligning with the client's vision. This achievement validated their goal of solving a real problem and providing proof of delivery for online transactions.

• What were the early challenges faced by Lob in building their API company?

  Lob faced challenges related to creating a minimal viable product (MVP), solving a real problem, and securing their first big client. They also emphasized the importance of thoughtful documentation for their API.

• 00:00 Harry Zhang, co-founder of Lob, shares the early challenges of building their API company, their minimal viable product (MVP), and the importance of thoughtful documentation. They started from a real problem, and their first big client came from Hacker News. Their goal was to solve a problem and provide proof of delivery for online transactions.
• 06:53 The speaker discussed how they landed a top tier client through a personalized cold email and the importance of aligning with the client's vision. They emphasized the significance of understanding customer motivations and conducting thorough research. The focus on enterprise customers is driven by the extensive mail volume in the market. Approximately 15% of their business is from self-service customers. The API can provide capabilities to smaller customers at a lesser scale.
• 13:23 The journey to enterprise took six years with the first big client signed two years ago. Pricing model evolved from traditional to platform fee to reflect the value of technology. Customer feedback influenced the shift in pricing strategy. The company competes on value, offering additional features like HIPAA compliance at an extra cost.
• 20:31 The company focuses on understanding customer value and prioritizing product roadmap. They've adapted to enterprise customer needs by emphasizing API accessibility. Recruitment is centered around culture fit, the mission, and unique equity compensation. They use a special RSU instrument to keep employees invested in the long term.
• 26:50 The company focuses on employee ownership and vesting, learnt from a failed deal with a customer for a 'mugs API', used lessons learned to negotiate with a major customer, and evaluates customer interest before developing new mail formats.
• 33:33 A discussion about the evolution of a company, the challenges of founder roles changing over time, the consideration of owning print infrastructure, and the importance of having the right partners.