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M&A, competition, pricing, and investing | Julia Schottenstein (dbt Labs)

1h 0m · Lenny's Podcast: Product | Growth | Career · 13 Jul 12:01

Brought to you by Vanta—Automate compliance. Simplify security | Superhuman—The fastest email experience ever made | AssemblyAI—Production-ready AI models to transcribe and understand speech

Julia Schottenstein is a product lead at dbt Labs, a data transformation company, and an active angel investor in data and infrastructure startups. She first got excited about dbt in 2019 when she was a VC at NEA and decided to make the leap from investor to operator by joining dbt Labs. She also co-hosts the dbt Labs Analytics Engineering Podcast, a show about data trends that impact analytics engineers’ work. In today’s episode, we discuss:

• Advice for founders hoping to improve their M&A outcome

• How to strategically think about competition

• How to determine your paid features and have willingness-to-pay conversations

• Why Julia lives by “worse is better” and “tech debt is a champagne problem”

• Lessons from dbt Labs

• What PMs can learn from investors

Find the full transcript at: https://www.lennyspodcast.com/ma-competition-pricing-and-investing-julia-schottenstein-dbt-labs/#transcript

Where to find Julia Schottenstein:

• Twitter: https://twitter.com/j_schottenstein

• LinkedIn: https://www.linkedin.com/in/julia-schottenstein-25424318/

• Podcast: https://open.spotify.com/show/4BKMMeVXk4jJnAQSqGSJvE

Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• Twitter: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

In this episode, we cover:

(00:00) Julia’s background

(04:15) How Julia went from VC to working in product at dbt Labs

(08:24) Four things Julia uses to evaluate a company’s potential 

(11:10) How to identify whether or not you have product-market fit

(12:05) Distribution strategies

(13:11) M&A strategies

(15:54) Lessons from the Transform acquisition

(18:01) Competitive values at dbt

(20:25) Keys to dbt’s success

(26:35) An offsite exercise Julia used to help her team internalize upcoming changes

(29:32) Determining what features are included in open source

(31:56) Pricing and willingness to pay

(33:34) Lessons from dbt Labs’s first pricing change

(36:33) Whether or not to be public about selling your startup

(40:08) How to utilize connections during acquisitions

(44:57) How to communicate selling your company

(46:33) M&A market forecast

(47:28) Values at dbt Labs 

(50:14) Lessons from working with strongly opinionated users

(52:02) The importance of shipping, learning, and iterating 

(54:08) How VC skills translate into product

(57:03) Lightning round

Referenced:

• dbt Labs: https://www.getdbt.com/

• Tristan Handy on LinkedIn: https://www.linkedin.com/in/tristanhandy/

• dbt Labs acquires Transform to enhance Semantic Layer tool: https://www.techtarget.com/searchbusinessanalytics/news/365530993/DBT-Labs-acquires-Transform-to-enhance-Semantic-Layer-tool

• Snowflake: https://www.snowflake.com/en/

Gödel, Escher, Bach: An Eternal Golden Braid: https://www.amazon.com/G%C3%B6del-Escher-Bach-Eternal-Golden/dp/0465026567

• Red strings training clip from Ted Lasso: https://www.youtube.com/watch?v=aVe3Iwy10MA

Monetizing Innovation: https://www.amazon.com/Monetizing-Innovation-Companies-Design-Product/dp/1119240867

• Madhavan Ramanujam on Lenny’s Podcast: https://www.lennysnewsletter.com/p/the-art-and-science-of-pricing-madhavan#details

• Pricing survey: https://www.qualtrics.com/marketplace/vanwesterndorp-pricing-sensitivity-study/

• Hunter Walk’s blog post about publicly selling your startup: https://hunterwalk.com/2023/05/13/the-acquihire-market-for-early-stage-startups-is-ice-cold-one-better-strategy-announce-youre-for-sale/

Range: Why Generalists Triumph in a Specialized World: https://www.amazon.com/Range-Generalists-Triumph-Specialized-World/dp/0735214506/

The Snowball: Warren Buffett and the Business of Life: https://www.amazon.com/Snowball-Warren-Buffett-Business-Life/dp/0553384619/r

Sam Walton: Made in America: https://www.amazon.com/Sam-Walton-Made-America/dp/0553562835

Succession on HBO: https://www.hbo.com/succession

• In Depth podcast: https://review.firstround.com/podcast

• dbt community Slack: https://www.getdbt.com/community/join-the-community/

Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email [email protected].

Lenny may be an investor in the companies discussed.

Get full access to Lenny's Newsletter at www.lennysnewsletter.com/subscribe

The episode M&A, competition, pricing, and investing | Julia Schottenstein (dbt Labs) from the podcast Lenny's Podcast: Product | Growth | Career has a duration of 1:00:50. It was first published 13 Jul 12:01. The cover art and the content belong to their respective owners.

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How to measure and improve developer productivity | Nicole Forsgren (Microsoft Research, GitHub, Google)

This episode is brought to you by DX—a platform for measuring and improving developer productivity.

Dr. Nicole Forsgren is a developer productivity and DevOps expert who works with engineering organizations to make work better. Best known as co-author of the Shingo Publication Award-winning book Accelerate and the DevOps Handbook, 2nd edition and author of the State of DevOps Reports, she has helped some of the biggest companies in the world transform their culture, processes, tech, and architecture. Nicole is currently a Partner at Microsoft Research, leading developer productivity research and strategy, and a technical founder/CEO with a successful exit to Google. In a previous life, she was a software engineer, sysadmin, hardware performance engineer, and professor. She has published several peer-reviewed journal papers, has been awarded public and private research grants (funders include NASA and the NSF), and has been featured in the Wall Street Journal, Forbes, Computerworld, and InformationWeek. In today’s podcast, we discuss:

• Two frameworks for measuring developer productivity: DORA and SPACE

• Benchmarks for what good and great look like

• Common mistakes to avoid when measuring developer productivity

• Resources and tools for improving your metrics

• Signs your developer experience needs attention

• How to improve your developer experience

• Nicole’s Four-Box framework for thinking about data and relationships

Find the full transcript at: https://www.lennyspodcast.com/how-to-measure-and-improve-developer-productivity-nicole-forsgren-microsoft-research-github-goo/#transcript

Where to find Nicole Forsgren:

• Twitter: https://twitter.com/nicolefv

• LinkedIn: https://www.linkedin.com/in/nicolefv/

• Website: https://nicolefv.com/

Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• Twitter: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

In this episode, we cover:

(00:00) Nicole’s background

(07:55) Unpacking the terms “developer productivity,” “developer experience,” and “DevOps”

(10:06) How to move faster and improve practices across the board

(13:43) The DORA framework

(18:54) Benchmarks for success

(22:33) Why company size doesn’t matter 

(24:54) How to improve DevOps capabilities by working backward

(29:23) The SPACE framework and choosing metrics

(32:51) How SPACE and DORA work together

(35:39) Measuring satisfaction

(37:52) Resources and tools for optimizing metrics

(41:29) Nicole’s current book project

(45:43) Common pitfalls companies run into when rolling out developer productivity/optimizations

(47:42) How the DevOps space has progressed

(50:07) The impact of AI on the developer experience and productivity

(54:04) First steps to take if you’re trying to improve the developer experience

(55:15) Why Google is an example of a company implementing DevOps solutions well

(56:11) The importance of clear communication

(57:32) Nicole’s Four-Box framework

(1:05:15) Advice on making decisions 

(1:08:56) Lightning round

Referenced:

• Chef: https://www.chef.io/

• DORA: https://dora.dev/

• GitHub: https://github.com/

• Microsoft Research: https://www.microsoft.com/en-us/research/

• What is DORA?: https://devops.com/what-is-dora-and-why-you-should-care/

• Dustin Smith on LinkedIn: https://www.linkedin.com/in/dustin-smith-b0525458/

• Nathen Harvey on LinkedIn: https://www.linkedin.com/in/nathen/

• What is CI/CD?: https://about.gitlab.com/topics/ci-cd/

• Trunk-based development: https://cloud.google.com/architecture/devops/devops-tech-trunk-based-development

• DORA DevOps Quick Check: https://dora.dev/quickcheck/

Accelerate: The Science of Lean Software and DevOps: Building and Scaling High Performing Technology Organizations: https://www.amazon.com/Accelerate-Software-Performing-Technology-Organizations/dp/1942788339

• The SPACE of Developer Productivity: https://queue.acm.org/detail.cfm?id=3454124

• DevOps Metrics: Nicole Forsgren and Mik Kersten: https://queue.acm.org/detail.cfm?id=3182626

How to Measure Anything: Finding the Value of Intangibles in Business: https://www.amazon.com/How-Measure-Anything-Intangibles-Business/dp/1118539273/

• GitHub Copilot: https://github.com/features/copilot

• Tabnine: https://www.tabnine.com/the-leading-ai-assistant-for-software-development

• Nicole’s Decision-Making Spreadsheet: https://docs.google.com/spreadsheets/d/1wItAODkhZ-zKnnFbyDERCd8Hq2NQ03WPvCfigBQ5vpc/edit?usp=sharing

• How to do linear regression and correlation analysis: https://www.lennysnewsletter.com/p/linear-regression-and-correlation-analysis

Good Strategy/Bad Strategy: The difference and why it matters: https://www.amazon.com/Good-Strategy-Bad-difference-matters/dp/1781256179/

Designing Your Life: How to Build a Well-Lived, Joyful Life: https://www.amazon.com/Designing-Your-Life-Well-Lived-Joyful/dp/1101875321

Ender’s Game: https://www.amazon.com/Enders-Game-Ender-Quintet-1/dp/1250773024/ref=tmm_pap_swatch_0

Suits on Netflix: https://www.netflix.com/title/70195800

Ted Lasso on AppleTV+: https://tv.apple.com/us/show/ted-lasso

Never Have I Ever on Netflix: https://www.netflix.com/title/80179190

• Eight Sleep: https://www.eightsleep.com/

• COSRX face masks: https://www.amazon.com/COSRX-Advanced-Secretion-Hydrating-Moisturizing/dp/B08JSL9W6K/

Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email [email protected].

Lenny may be an investor in the companies discussed.

Get full access to Lenny's Newsletter at www.lennysnewsletter.com/subscribe

The ultimate guide to A/B testing | Ronny Kohavi (Airbnb, Microsoft, Amazon)

Brought to you by Mixpanel—Event analytics that everyone can trust, use, and afford | Round—The private network built by tech leaders for tech leaders | Eppo—Run reliable, impactful experiments

Ronny Kohavi, PhD, is a consultant, teacher, and leading expert on the art and science of A/B testing. Previously, Ronny was Vice President and Technical Fellow at Airbnb, Technical Fellow and corporate VP at Microsoft (where he led the Experimentation Platform team), and Director of Data Mining and Personalization at Amazon. He was also honored with a lifetime achievement award by the Experimentation Culture Awards in September 2020 and teaches a popular course on experimentation on Maven. In today’s podcast, we discuss:

• How to foster a culture of experimentation

• How to avoid common pitfalls and misconceptions when running experiments

• His most surprising experiment results

• The critical role of trust in running successful experiments

• When not to A/B test something

• Best practices for helping your tests run faster

• The future of experimentation

Enroll in Ronny’s Maven class: Accelerating Innovation with A/B Testing at https://bit.ly/ABClassLenny. Promo code “LENNYAB” will give $500 off the class for the first 10 people to use it.

Find the full transcript at: https://www.lennyspodcast.com/the-ultimate-guide-to-ab-testing-ronny-kohavi-airbnb-microsoft-amazon/

Where to find Ronny Kohavi:

• Twitter: https://twitter.com/ronnyk

• LinkedIn: https://www.linkedin.com/in/ronnyk/

• Website: http://ai.stanford.edu/~ronnyk/

Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• Twitter: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

In this episode, we cover:

(00:00) Ronny’s background

(04:29) How one A/B test helped Bing increase revenue by 12%

(09:00) What data says about opening new tabs

(10:34) Small effort, huge gains vs. incremental improvements 

(13:16) Typical fail rates

(15:28) UI resources

(16:53) Institutional learning and the importance of documentation and sharing results

(20:44) Testing incrementally and acting on high-risk, high-reward ideas

(22:38) A failed experiment at Bing on integration with social apps

(24:47) When not to A/B test something

(27:59) Overall evaluation criterion (OEC)

(32:41) Long-term experimentation vs. models

(36:29) The problem with redesigns

(39:31) How Ronny implemented testing at Microsoft

(42:54) The stats on redesigns 

(45:38) Testing at Airbnb

(48:06) Covid’s impact and why testing is more important during times of upheaval 

(50:06) Ronny’s book, Trustworthy Online Controlled Experiments: A Practical Guide to A/B Testing

(51:45) The importance of trust

(55:25) Sample ratio mismatch and other signs your experiment is flawed

(1:00:44) Twyman’s law

(1:02:14) P-value

(1:06:27) Getting started running experiments

(1:07:43) How to shift the culture in an org to push for more testing

(1:10:18) Building platforms

(1:12:25) How to improve speed when running experiments

(1:14:09) Lightning round

Referenced:

Trustworthy Online Controlled Experiments: A Practical Guide to A/B Testing: https://experimentguide.com/

• Seven rules of thumb for website experimenters: https://exp-platform.com/rules-of-thumb/

• GoodUI: https://goodui.org

• Defaults for A/B testing: http://bit.ly/CH2022Kohavi

• Ronny’s LinkedIn post about A/B testing for startups: https://www.linkedin.com/posts/ronnyk_abtesting-experimentguide-statisticalpower-activity-6982142843297423360-Bc2U

• Sanchan Saxena on Lenny’s Podcast: https://www.lennyspodcast.com/sanchan-saxena-vp-of-product-at-coinbase-on-the-inside-story-of-how-airbnb-made-it-through-covid-what-he8217s-learned-from-brian-chesky-brian-armstrong-and-kevin-systrom-much-more/

• Optimizely: https://www.optimizely.com/

• Optimizely was statistically naive: https://analythical.com/blog/optimizely-got-me-fired

• SRM: https://www.linkedin.com/posts/ronnyk_seat-belt-wikipedia-activity-6917959519310401536-jV97

• SRM checker: http://bit.ly/srmCheck

• Twyman’s law: http://bit.ly/twymanLaw

• “What’s a p-value” question: http://bit.ly/ABTestingIntuitionBusters

• Fisher’s method: https://en.wikipedia.org/wiki/Fisher%27s_method

• Evolving experimentation: https://exp-platform.com/Documents/2017-05%20ICSE2017_EvolutionOfExP.pdf

• CUPED for variance reduction/increased sensitivity: http://bit.ly/expCUPED

• Ronny’s recommended books: https://bit.ly/BestBooksRonnyk

Chernobyl on HBO: https://www.hbo.com/chernobyl

• Blink cameras: https://blinkforhome.com/

• Narrative not PowerPoint: https://exp-platform.com/narrative-not-powerpoint/

Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email [email protected].

Lenny may be an investor in the companies discussed.

Get full access to Lenny's Newsletter at www.lennysnewsletter.com/subscribe

The 10 traits of great PMs, how AI will impact your product, and Slack’s product development process | Noah Weiss (Slack, Foursquare, Google)

Brought to you by Sidebar—Catalyze your career with a Personal Board of Directors | Superhuman—The fastest email experience ever made | Vanta—Automate compliance. Simplify security.

Noah Weiss is Chief Product Officer at Slack, where he leads all aspects of the product organization, including the self-service SMB business, the team that launched huddles and clips, and the search and machine-learning teams. Prior to Slack, Noah served as SVP of Product at Foursquare. He started his career at Google, leading the structured data search team and working on display ads. In today’s episode, we discuss:

• The top 10 traits of great PMs

• How “complaint storms” helped Slack teams foster empathy

• How Slack’s product team is approaching AI

• “Comprehension desirability” and other key factors leading to Slack’s success

• Why you should be customer-aware but not customer-obsessed

• Important areas of growth for both new PMs and senior PMs

Curious to learn more about Slack? You can try Slack Pro and get 50% off using this link.

Find the transcript at: https://www.lennyspodcast.com/the-10-traits-of-great-pms-how-ai-will-impact-your-product-and-slacks-product-development-process/

Where to find Noah Weiss:

• Twitter: https://twitter.com/noah_weiss

• LinkedIn: https://www.linkedin.com/in/noahw/

Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• Twitter: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

In this episode, we cover:

(00:00) Noah’s background

(04:22) Noah’s advice on new parenthood

(07:23) Lessons learned from leading product at Foursquare

(11:33) Advice for working with strongly opinionated founders

(14:14) Thinking of involvement on a U-shaped curve

(16:53) Principles at Slack

(19:32) Implementing ML, AI, and LLMs in meaningful ways

(25:11) How Slack structures AI teams

(26:59) Complaint storms and how they help foster empathy

(30:01) Slack’s approach to prioritization 

(32:26) How delight is baked into the DNA of Slack

(34:41) How Slack thinks about competition 

(38:04) Building a culture that takes big bets

(41:40) Rituals at Slack

(44:51) How Slack unlocked new levers of growth and revived their self-serve business

(52:01) Slack’s early success and the factors that made them successful 

(58:08) Slack’s pilot programs for testing new features

(1:02:03) Noah’s famous blog post: “The 10 Traits of Great Product Managers”

(1:10:15) Book recommendations to improve your writing

(1:12:30) Managing up and the importance of data fluency

(1:14:54) The most important skills to improve as an early-career PM and as a senior PM

(1:17:16) Lightning round

Referenced:

• Emily Oster: https://emilyoster.net/

• Dennis Crowley: https://denniscrowley.com/

• Stewart Butterfield on Twitter: https://twitter.com/stewart

Don’t Make Me Think, Revisited: A Common Sense Approach to Web Usability: https://www.amazon.com/Dont-Make-Think-Revisited-Usability/dp/0321965515

• Gustav Söderström on Lenny’s Podcast: https://www.lennyspodcast.com/lessons-from-scaling-spotify-the-science-of-product-taking-risky-bets-and-how-ai-is-already-impacting-the-future-of-music-gustav-soderstrom-co-president-cpo-and-cto-at-spotify/

• Seth Godin: https://seths.blog/

• Noah’s blog post on the 10 traits of great PMs: https://medium.com/@noah_weiss/10-traits-of-great-pms-a7776cd3d9cd

• Five Dangerous Myths about Product Management: https://medium.com/@noah_weiss/five-dangerous-myths-about-product-management-d1d852ed02a2

• Paul Graham: http://paulgraham.com/

• Ben Horowitz on Twitter: https://twitter.com/bhorowitz

On Writing: A Memoir of the Craft: https://www.amazon.com/Writing-Memoir-Craft-Stephen-King/dp/1982159375

On Writing Well: The Classic Guide to Writing Nonfiction: https://www.amazon.com/Writing-Well-Classic-Guide-Nonfiction/dp/0060891548

Nobody Wants to Read Your Sh*t: And Other Tough-Love Truths to Make You a Better Writer: https://www.amazon.com/Nobody-Wants-Read-Your-Tough-Love/dp/1936891492

Several Short Sentences About Writing: https://www.amazon.com/Several-Short-Sentences-About-Writing/dp/0307279413

• Paige Costello on Twitter: https://twitter.com/paigenow

Creative Selection: Inside Apple's Design Process During the Golden Age of Steve Jobs: https://www.amazon.com/Creative-Selection-Inside-Apples-Process/dp/1250194466

The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail: https://www.amazon.com/Innovators-Dilemma-Technologies-Management-Innovation/dp/1633691780

Radical Candor: https://www.amazon.com/Radical-Candor-Revised-Kim-Scott/dp/1250258405

Leadership: In Turbulent Times: https://www.amazon.com/Leadership-Turbulent-Doris-Kearns-Goodwin/dp/1476795924

Succession on HBO: https://www.hbo.com/succession

The Bear on Hulu: https://www.hulu.com/series/the-bear-05eb6a8e-90ed-4947-8c0b-e6536cbddd5f

• Nanit: https://www.nanit.com/

• Snoo: https://www.happiestbaby.com/products/snoo-smart-bassinet

• Uppababy: https://uppababy.com/

Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email [email protected].

Lenny may be an investor in the companies discussed.

Get full access to Lenny's Newsletter at www.lennysnewsletter.com/subscribe

LinkedIn’s product evolution and the art of building complex systems | Hari Srinivasan (LinkedIn)

Brought to you by Miro—A collaborative visual platform where your best work comes to life | Brave Search API—An independent, global search index you can use to power your search or AI app | Eppo—Run reliable, impactful experiments

Hari Srinivasan is VP of Product at LinkedIn Talent Solutions, where he oversees LinkedIn Recruiter, LinkedIn Jobs, and LinkedIn Learning. He’s also a frequent guest lecturer at Stanford University. Previously, he served as the CEO and founder of We Created It, which was acquired by LinkedIn in 2014. Hari has a passion for building products, with experience ranging from creating the first U.S. hybrid SUV to developing a No. 1 app and writing a beloved children’s book. In today’s episode, we discuss:

• LinkedIn’s unique business model and org structure

• How to optimize your LinkedIn experience and improve your chances of getting a PM role

• How to adapt to a skills-first talent market

• The story of Hari’s failed first product review, and how he pivoted for success

• Strategies for building and maintaining complex systems

• How to get into product management

Find the full transcript at: https://www.lennyspodcast.com/linkedins-product-evolution-and-the-art-of-building-complex-systems-hari-srinivasan-linkedin/#transcript

Where to find Hari Srinivasan:

• LinkedIn: https://www.linkedin.com/in/hsrinivasan1/

• Website: https://www.mindofhari.com/

Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• Twitter: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

In this episode, we cover:

(00:00) Hari’s background

(05:04) How Twitter brought Lenny and Hari together

(06:32) LinkedIn’s positive evolution, and what they did right

(10:14) Specific changes that made LinkedIn’s feed more interesting

(11:12) Understanding the algorithm and what kinds of content perform best

(12:21) The talent solution product

(15:46) The shift to skills-first hiring, and how LinkedIn changed their approach

(20:24) The open-to-work signal, and the newly released open-to-internal-work signal

(22:13) The PM talent landscape, and tips for landing a PM role

(24:55) How to optimize your LinkedIn profile to get noticed by recruiters

(28:38) Hari’s first product review at LinkedIn

(30:38) LinkedIn’s North Star, and how to operationalize the North Star at any company

(33:24) LinkedIn’s members-first value

(35:32) Building and maintaining complex systems

(38:09) The RAPID framework and the Five-Day Alignment framework

(39:51) What LinkedIn looks for in new hires

(40:51) The latest innovations at LinkedIn

(43:16) LinkedIn Learning

(45:00) Hari’s product management course

(48:19) Advice for people hoping to get into product management

(50:40) How to level up your PM skills

(51:57) Hari’s creative side projects 

(55:02) Lightning round

Referenced:

• Tweet from TheCuriousPM: https://twitter.com/zatin_jatin/status/1658616200560254978?s=20

• The Curious PM on Twitter: https://twitter.com/zatin_jatin

• Decision-making at LinkedIn: https://engineering.linkedin.com/blog/2018/03/scaling-decision-making-across-teams-within-linkedin-engineering

• LinkedIn Learning: https://www.linkedin.com/learning

Thinking in Systems: https://www.amazon.com/Thinking-Systems-Donella-H-Meadows/dp/1603580557

Tomorrow, and Tomorrow, and Tomorrow: https://www.amazon.com/Tomorrow-novel-Gabrielle-Zevin/dp/0593321200

An Immense World: How Animal Senses Reveal the Hidden Realms Around Us: https://www.amazon.com/Immense-World-Animal-Senses-Reveal/dp/0593133234

Star Wars on Disney+: https://www.disneyplus.com/brand/star-wars

Case 63 on Spotify: https://open.spotify.com/show/4c9ZKaFtEKweSYOlYvxfvp

E.T. on Tubi: https://tubitv.com/movies/607451/e-t-the-extra-terrestrial

• BriteBrush: https://www.amazon.com/BriteBrush-Interactive-Smart-Toothbrush-featuring/dp/B07VLL8QH4

Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email [email protected].

Lenny may be an investor in the companies discussed.

Get full access to Lenny's Newsletter at www.lennysnewsletter.com/subscribe

M&A, competition, pricing, and investing | Julia Schottenstein (dbt Labs)

Brought to you by Vanta—Automate compliance. Simplify security | Superhuman—The fastest email experience ever made | AssemblyAI—Production-ready AI models to transcribe and understand speech

Julia Schottenstein is a product lead at dbt Labs, a data transformation company, and an active angel investor in data and infrastructure startups. She first got excited about dbt in 2019 when she was a VC at NEA and decided to make the leap from investor to operator by joining dbt Labs. She also co-hosts the dbt Labs Analytics Engineering Podcast, a show about data trends that impact analytics engineers’ work. In today’s episode, we discuss:

• Advice for founders hoping to improve their M&A outcome

• How to strategically think about competition

• How to determine your paid features and have willingness-to-pay conversations

• Why Julia lives by “worse is better” and “tech debt is a champagne problem”

• Lessons from dbt Labs

• What PMs can learn from investors

Find the full transcript at: https://www.lennyspodcast.com/ma-competition-pricing-and-investing-julia-schottenstein-dbt-labs/#transcript

Where to find Julia Schottenstein:

• Twitter: https://twitter.com/j_schottenstein

• LinkedIn: https://www.linkedin.com/in/julia-schottenstein-25424318/

• Podcast: https://open.spotify.com/show/4BKMMeVXk4jJnAQSqGSJvE

Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• Twitter: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

In this episode, we cover:

(00:00) Julia’s background

(04:15) How Julia went from VC to working in product at dbt Labs

(08:24) Four things Julia uses to evaluate a company’s potential 

(11:10) How to identify whether or not you have product-market fit

(12:05) Distribution strategies

(13:11) M&A strategies

(15:54) Lessons from the Transform acquisition

(18:01) Competitive values at dbt

(20:25) Keys to dbt’s success

(26:35) An offsite exercise Julia used to help her team internalize upcoming changes

(29:32) Determining what features are included in open source

(31:56) Pricing and willingness to pay

(33:34) Lessons from dbt Labs’s first pricing change

(36:33) Whether or not to be public about selling your startup

(40:08) How to utilize connections during acquisitions

(44:57) How to communicate selling your company

(46:33) M&A market forecast

(47:28) Values at dbt Labs 

(50:14) Lessons from working with strongly opinionated users

(52:02) The importance of shipping, learning, and iterating 

(54:08) How VC skills translate into product

(57:03) Lightning round

Referenced:

• dbt Labs: https://www.getdbt.com/

• Tristan Handy on LinkedIn: https://www.linkedin.com/in/tristanhandy/

• dbt Labs acquires Transform to enhance Semantic Layer tool: https://www.techtarget.com/searchbusinessanalytics/news/365530993/DBT-Labs-acquires-Transform-to-enhance-Semantic-Layer-tool

• Snowflake: https://www.snowflake.com/en/

Gödel, Escher, Bach: An Eternal Golden Braid: https://www.amazon.com/G%C3%B6del-Escher-Bach-Eternal-Golden/dp/0465026567

• Red strings training clip from Ted Lasso: https://www.youtube.com/watch?v=aVe3Iwy10MA

Monetizing Innovation: https://www.amazon.com/Monetizing-Innovation-Companies-Design-Product/dp/1119240867

• Madhavan Ramanujam on Lenny’s Podcast: https://www.lennysnewsletter.com/p/the-art-and-science-of-pricing-madhavan#details

• Pricing survey: https://www.qualtrics.com/marketplace/vanwesterndorp-pricing-sensitivity-study/

• Hunter Walk’s blog post about publicly selling your startup: https://hunterwalk.com/2023/05/13/the-acquihire-market-for-early-stage-startups-is-ice-cold-one-better-strategy-announce-youre-for-sale/

Range: Why Generalists Triumph in a Specialized World: https://www.amazon.com/Range-Generalists-Triumph-Specialized-World/dp/0735214506/

The Snowball: Warren Buffett and the Business of Life: https://www.amazon.com/Snowball-Warren-Buffett-Business-Life/dp/0553384619/r

Sam Walton: Made in America: https://www.amazon.com/Sam-Walton-Made-America/dp/0553562835

Succession on HBO: https://www.hbo.com/succession

• In Depth podcast: https://review.firstround.com/podcast

• dbt community Slack: https://www.getdbt.com/community/join-the-community/

Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email [email protected].

Lenny may be an investor in the companies discussed.

Get full access to Lenny's Newsletter at www.lennysnewsletter.com/subscribe
Every Podcast » Lenny's Podcast: Product | Growth | Career » M&A, competition, pricing, and investing | Julia Schottenstein (dbt Labs)