How to find — and keep — product-market fit | Bob Moore (Co-founder and CEO at Crossbeam, ex-RJMetrics and Stitch Data)
In Depth
Deep Dive
What is Crossbeam, and what problem does it solve?
Crossbeam is a data-driven partner ecosystem platform often described as 'LinkedIn for data.' It helps companies find overlapping opportunities with their partners by enabling them to share and analyze data collaboratively. The platform replaces the manual process of account mapping, which traditionally involves emailing spreadsheets back and forth, with a secure, automated solution.
How did Bob Moore validate the idea for Crossbeam?
Bob Moore validated the idea for Crossbeam by pitching it to 20-30 founders rather than traditional end users or buyers. He sought their gut reactions and asked if they would start the company themselves. This approach allowed him to expand the scope of the idea and gauge long-term conviction rather than just immediate product-market fit.
Why did Bob Moore choose to talk to founders instead of end users when validating Crossbeam?
Bob Moore chose to talk to founders because he trusted their ability to understand market evolution and the durability of a business idea. Founders have empathy for multiple personas and can provide insights into long-term sustainability, which is crucial at the early stages of a startup.
What lessons did Bob Moore learn from RJMetrics about product-market fit?
Bob Moore learned that product-market fit is not static; markets can move, and products can fall out of fit. RJMetrics initially struggled but eventually found fit when the market caught up to their analytics platform. However, they lost fit again when the market shifted toward cloud-based data warehouses like Amazon Redshift, making their bundled product less relevant.
What was the revenue trajectory of RJMetrics during its peak and decline?
RJMetrics grew from less than $100K in its first year to $1M in ARR over three years. During its peak, it grew from $1M to $5M in ARR, but growth slowed to 10% as the market shifted toward the modern data stack, leading to churn and flatlining revenue.
How did RJMetrics pivot after losing product-market fit?
RJMetrics pivoted by isolating its data pipeline technology and creating a new product called RJMetrics Pipeline, which allowed data to be sent to any destination, not just their own servers. This pivot led to the creation of Stitch Data, which was later acquired by Talend.
What is the 'joint jam' sales tactic used by Crossbeam?
The 'joint jam' is a sales tactic where Crossbeam conducts demos with two companies simultaneously. This approach ensures that both companies see the value of the platform immediately by connecting their data live during the demo, bypassing the single-player mode issue and driving virality.
Why did Crossbeam merge with its competitor Reveal?
Crossbeam merged with Reveal because customers were frustrated by having to use two separate platforms to connect with their partners. The merger unified the network graph, eliminating the need for customers to choose between the two and allowing both companies to focus on competing with larger players in the market.
What surprised Bob Moore after the Crossbeam-Reveal merger?
Bob Moore was surprised by the strong work ethic and talent of the Reveal team, particularly given stereotypes about French work culture. He found the Paris startup scene vibrant and plans to invest further in growing Crossbeam's Paris office.
What is the importance of intellectual honesty in building a startup?
Intellectual honesty is crucial for recognizing when market dynamics are changing and when a product is falling out of fit. Bob Moore emphasizes the need to differentiate between noise and signal, especially when metrics like churn or outbound sales start to decline, as these can indicate deeper market shifts.
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