Building a 4 billion dollar data platform: Inside dbt Labs’ unconventional path | Tristan Handy (Co-founder and CEO, ex-RJMetrics, Squarespace)
Tristan Handy is the Founder and CEO at dbt Labs, a cloud-based data management platform that has raised over $400M to date, and was last valued at $4.2B in 2022. Dbt Labs has grown from just three companies using its free tool in 2016 to an ecosystem of 30,000+ enterprise users. Before founding dbt Labs, Tristan was the VP of Marketing at RJMetrics and the Director of Operations at Squarespace. – In today’s episode, we discuss: Dbt’s explosive growth The strategic pivot from consulting to a software company Unexpected strategies for building a tech category from scratch The critical moment: Why and when dbt Labs sought venture funding How to drive commercial adoption after open-sourcing Two things every founder CEO should do Much more – Referenced: Amazon Redshift: https://aws.amazon.com/redshift/ Bob Moore: https://www.linkedin.com/in/robertjmoore/ Crossbeam: https://www.crossbeam.com/ dbt Labs: https://www.getdbt.com/ Drew Banin: https://www.linkedin.com/in/drewbanin/ Jerry Colonna: https://www.reboot.io/team/jerry-colonna/ RJMetrics: https://en.wikipedia.org/wiki/RJMetrics SeatGeek: https://seatgeek.com/ Steve Ritter: https://www.linkedin.com/in/steve-ritter-69495210/ Squarespace: https://www.squarespace.com/ – Where to find Tristan: LinkedIn: https://www.linkedin.com/in/tristanhandy/ Twitter/X: https://x.com/jthandy – Where to find Brett: LinkedIn: https://www.linkedin.com/in/brett-berson-9986094/ Twitter/X: https://twitter.com/brettberson – Where to find First Round Capital: Website: https://firstround.com/ First Round Review: https://review.firstround.com/ Twitter/X: https://twitter.com/firstround YouTube: https://www.youtube.com/@FirstRoundCapital This podcast on all platforms: https://review.firstround.com/podcast – Timestamps: (00:00) Introduction (02:56) The critical oversight in data analysis (05:41) Becoming an “accidental founder” (07:04) Inside the unique decision to start a consultancy (08:17) The game-changing principle behind dbt Labs’ rapid growth (11:20) Finding dbt Labs’ first customers (15:52) Consulting's hidden scalability (17:25) How dbt Labs created a new category (21:03) The anti-demo strategy (23:59) Community hacking: the Slack group that changed everything (26:00) The open source philosophy (27:39) When growth went exponential (28:49) How consulting engagements shaped the roadmap (30:02) Fundraising only when “things started to break” (32:40) Consultancy superpowers: the hidden advantages (34:04) Pivoting from consulting to software (40:00) Key monetization strategies (48:56) Why “begrudging” CEOs can be successful (51:02) Advice for finding PMF: “It’s not a playbook” (51:59) Lowering your standards is a hack (53:30) Navigating emotional overwhelm (54:25) Every CEO needs a coach