Inside Braze’s blitz to $500M in CARR | Building broad, going global, and outfoxing the competition | Bill Magnuson (Co-founder & CEO) and Kevin Wang (CPO)
Feb 6, 2025
auto_awesome
Bill Magnuson, co-founder and CEO of Braze, and Kevin Wang, CPO, share their incredible journey from a TechCrunch Hackathon to a $4.4B platform. They discuss insights on the mobile revolution and breaking traditional startup rules. The duo emphasizes the importance of first principles thinking and ethical data practices in tech development. They strategically navigate competition and adapt to market shifts, proving resilience is key in building meaningful customer relationships. Tune in for their fascinating take on growth and innovation!
Braze's founders highlighted the importance of a long-term commitment to understanding the market for sustained product development.
Prioritizing first-party data and user privacy allowed Braze to build trust and adapt to evolving regulations seamlessly.
By balancing awareness of the competition with unique product innovation, startups can successfully carve out their niche in the market.
Braze's shift from a network-based model to a subscription-based SaaS approach illustrates the importance of flexibility based on customer feedback.
Deep dives
Winning the Product Market Fit Race
Achieving terminal value product market fit requires a long-term commitment to outpace competitors in a fast-evolving market. Startups must invest in developing an understanding of the market and cultivate a unique DNA that supports endurance in product development. The podcast emphasizes that without this investment, companies risk losing ground to competitors who can leverage better go-to-market resources. Ultimately, consistent dedication to the product and market knowledge is essential for securing a leading position in the industry.
The Journey of Braze's Founders
Bill Magnuson and Kevin Wang, co-founders of Braze, shared their experiences of launching the company amidst skepticism about the mobile app economy. Initially known as AppBoy, the company started when Magnuson had a chance meeting with the founder at a tech event, leading to a collaborative exploration of turning apps into viable businesses. The two emphasized that they ignored conventional lean startup advice and instead built a comprehensive platform from the outset, showcasing their conviction in the burgeoning mobile app marketplace. This belief in the market’s potential was vital as they navigated challenges and skepticism in the initial stages.
Adaptation to Data Privacy Challenges
The early mobile app ecosystem faced significant challenges around data privacy, with many companies committing privacy infringements that led to regulatory scrutiny. Braze made a strategic choice to prioritize first-party data and treat user privacy with respect, aiming to enhance user experience rather than exploit their information. This foundational decision kept the company ahead of compliance changes, avoiding the need to rollback features post-legislation. By focusing on a principle-driven approach to data usage, Braze managed to build trust with users while ensuring adaptability to future regulations.
Utilizing Competitive Advantages
Understanding the competitive landscape is crucial, especially in the early stages before achieving product market fit. The podcast discusses how tightly-held convictions about market trajectories can help startups find their niche while avoiding excessive focus on competition. Founders are encouraged to assess late-stage losses carefully and identify gaps that no competitors fulfill, allowing them to capitalize on unique strengths. Ultimately, a startup should balance awareness of competitors with continued focus on delivering an innovative product to their ideal customers.
Navigating Early Customer Acquisition
In the early phases of Braze’s growth, the team prioritized securing customers who not only understood the product but also aligned with their vision for mobile engagement. Many early adopters were mobile app developers, who were often skeptical about developing businesses around their applications. The company relied on outbound sales strategies, often having to persuade potential customers about the importance of engagement after the install phase. As the market matured, they began capturing a broader customer base, driven by a growing understanding of the value of their platform.
Building a Sustainable Business Model
Braze's founders initially explored a network-based business model integrating advertising with their product but soon pivoted to a more traditional SaaS approach based on client subscriptions. This shift stemmed from customer feedback that revealed a preference for flexibility instead of bundled services. This realization sparked a transformation in how they approached market demands, enabling them to capture a more diverse range of clients willing to pay for specific functionalities. This adaptability helped shape a sustainable revenue model that would allow for long-term growth.
Long-term Vision and Market Timing
Bill and Kevin reflect on the essential balance between strategic patience and taking immediate action during pivotal market moments. They discuss how their long-term vision for mobile engagement has consistently guided their decisions in response to evolving market trends and threats. Luck played a role in surviving through initial challenges, but a well-formed strategy positioned Braze favorably as the market matured. Founders are advised to maintain a commitment to a broader vision while adapting to shifting circumstances in both product landscapes and customer needs.
Bill Magnuson is the co-founder and CEO at Braze, along with Kevin Wang, who joined as employee #8 and serves as the CPO. The two MIT graduates have built Braze into a publicly listed customer engagement platform with a $4.4B market cap. In 2023, Braze surpassed $500M in CARR, and serves over 2,200 customers worldwide. Before Braze, Bill spent time at Bridgewater Associates. Kevin’s academic background is in brain & cognitive sciences, and prior to joining Braze he worked at Accenture and Brewgene.
–
In today’s episode, we discuss:
The Braze founders’ early insights into the mobile revolution
How a TechCrunch Hackathon sparked Braze's creation
The journey from 1,000 beta signups to 2,200+ paying customers
Breaking traditional lean startup rules
Navigating early fundraising challenges
Finding product market fit by “fishing in every pond”
Approaching competition strategically like a boxer
