Inside Mixpanel's YC Application (S2009) - The Journey to Building a Leading Analytics Platform
Company Overview
Progress at Application
Founder
Suhail Doshi
Co-founder & CEODeveloped apps with 1M+ installs, participated in OpenSocial development, created open-source JavaScript framework used by companies like Serious Business
Full-time, leaving ASU (Computer Systems Engineering)
Tim Trefren
Co-founderNational Merit Scholar, top 1% SAT scores, full scholarship at ASU
Full-time, leaving ASU (Computer Science)
Key Strengths
Mixpanel's application stood out through its combination of strong technical founders, clear market understanding, and existing traction with YC companies. The founders demonstrated both technical capability and business acumen, with real experience from leading tech companies.
Application Deep Dive
For each founder, please list: YC username; name; age; year, school, degree and subject for each degree; email address; personal url (if any); and present employer and title (if any).
suhail; Suhail Doshi; 20; (2010, Arizona State University, BSE, Computer Systems Engineering) trefn; Tim Trefren; 21; (2010, Arizona State University, BS, Computer Science)
Young Technical Founders
Both founders were young college students with strong technical backgrounds
Please tell us about the time you, suhail, most successfully hacked some (non-computer) system to your advantage.
Last summer I managed to get an internship at Slide, but a month after accepting their offer I decided I wanted more hourly pay. Before I even started at Slide, I was able to convince the recruiter that I had numerous offers still outstanding from companies like RockYou and Zynga and had in-depth OpenSocial experience that was deserving of a $10/hr raise. Luckily, she was able to get it and pay was very good that summer.
Negotiation Skills
Demonstrated ability to negotiate and leverage market position
Please tell us about an interesting project, preferably outside of class or work, that two or more of you created together. Include urls if possible.
Recently we've been working on a music search and on-demand streaming site called SongRaptor (http://songraptor.com). We built it to use as a case study for Mixpanel; we use Mixpanel for all the metrics and we've been making design decisions based on this data. Eventually we hope to show the effect that Mixpanel metrics can have on the growth of a site. We haven't gotten much farther than the most basic functionality yet. We've been spending most of our time on Mixpanel while our other friends continue development.
Product-Market Fit Validation
Built a real-world test case to validate their own product
How long have the founders known one another and how did you meet?
I've known Tim for just over a year. We were in the same discrete math class, and I noticed that there were quite a few smart CS types and thought that we should get something going. After class one day I introduced myself to them and suggested we could do a startup. Then everyone expressed interest, but only Tim followed up. Since then we've been hanging out and talking about startups. Tim went to Singapore to study last semester, and when he got back I pitched Mixpanel to him. He was interested and I wanted a cofounder so I brought him on board.
Organic Partnership
Met through academic connection with shared interests in startups
What is your company going to make?
Mixpanel is a business intelligence service that helps improve online companies by tracking user interactions, engagement, and optimization avenues instead of just tracking page views.
Clear Value Proposition
Immediately differentiates from existing analytics solutions by focusing on user interactions over simple page views
Please tell us something impressive that each founder has built or achieved.
Suhail participated in OpenSocial while it was bleeding edge, developed an application that got over 1MM installs, and an opensource javascript framework used by recognized application companies such as Serious Business w/ over 300+ downloads. Tim scored in the top 1% for the PSAT/SAT and became a National Merit Scholar.
Technical Credibility
Demonstrated ability to build and scale products with significant user adoption
What's new about what you're doing?
Mixpanel is going to bring the competitive advantage data-driven companies like Facebook and Slide have to everyone. Instead of just tracking page views and referrals, Mixpanel will let people learn about their customers by tracking interactions and engagement. We're also going to help them identify and track their conversion funnels. Today, companies have to spend their most scarce resources, time and money, to build out internal analytic systems specific to their application.
Market Democratization
Making enterprise-level analytics accessible to all companies
Who are your competitors, and who might become competitors? Who do you fear most?
Our primary competitor is Google Analytics. Many of the inquiries we receive ask "How are you different from GA?" and a successful solution has been to explicitly say what we offer and how we are different from the beginning. We fear Google the most because of their market penetration and their engineering resources. Aside from Google, there are a few other companies entering this market: nuconomy, KISSmetrics, Aster Data, and Gumtrail.
Clear Competitive Awareness
Direct acknowledgment of Google Analytics as main competitor with proactive differentiation strategy
How will you make money?
Mixpanel's business model is a subscription based freemium model. Based on the data logged and analyzed we can scale prices based solely on usage similar to that of Amazon S3. Our idea is to target small under-served startups before they build out an internal system. During that period, we aim to help, consult, build case studies, and provide a free trial to augment our brand and reputation before targeting larger potential clients.
Clear Business Model
Usage-based pricing with clear growth strategy targeting underserved market
How long will it take before you have a prototype? A beta? A version you can charge for?
We currently already have a alpha build with a variety of clients saying they will or have integrated including some YCombinator companies: Posterous, TicketStumbler, and HeyZap. A beta will likely be finished either before summer starts or soon during. Our alpha version is already earning revenue at a profit and we are working on stream-lining this process.
Early Market Validation
Already has paying customers including YC companies using the alpha version
If we fund you, which of the founders will commit to working exclusively (no school, no other jobs) on this project for the next year?
Both Tim and I are committed to working exclusively for the next year with some path of success in sight.
Full Commitment
Both founders willing to leave school to pursue the startup
Do any founders have other commitments between June and August 2009 inclusive?
We have no commitments between that period and are free to start mid May.
Immediate Availability
Ready to start immediately with no competing commitments
Do any founders have commitments in the future (e.g. finishing college, going to grad school), and if so what?
We've invested three years into college so far, but we are willing to take a leave of absence to pursue this startup. We're entering a market where we can be a serious competitor and we have to move now.
Strategic Timing
Recognition of market opportunity timing over completing education
Are any of the founders covered by noncompetes or intellectual property agreements that overlap with your project?
No to both questions.
Clean Slate
No legal encumbrances or IP complications
If you had any other ideas you considered applying with, feel free to list them.
We're considering entering other areas of analytics and business intelligence such as Mobile and outsourced data processing through Hadoop. After looking at your ideas page, we thought it was interesting that we might address #30: Startups for startups.
Strategic Vision
Clear vision for future expansion and market opportunities
Please tell us something surprising or amusing that one of you has discovered.
Users have the tendency to defy your expectations all the time. If you don't listen, you won't survive.
Customer-Centric Philosophy
Deep understanding of the importance of user feedback and adaptation