Michael Babineau is cofounder and CEO of Second Measure. Second Measure analyzes billions of credit card transactions to answer real-time questions on consumer behavior. They were in the Summer 2015 batch of YC and you can check them out at SecondMeasure.com.

Kevin Hale is a Partner at YC. Before working at YC he cofounded Wufoo.

You can find Michael on Twitter @mikebabineau and Kevin is @ilikevests.

The YC Podcast is hosted by Craig Cannon.

Y Combinator invests a small amount of money ($150k) in a large number of startups (recently 200), twice a year.

Learn more about YC and apply for funding here: https://www.ycombinator.com/apply/

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Topics

00:00 - Intro

00:35 - What idea did Mike apply to YC with?

01:20 - Where did the idea come from?

4:35 - From project to company

10:20 - What info did investors want to know that Second Measure could provide?

12:05 - Their first customers

14:35 - The primary use case of Second Measure for VCs

15:20 - What questions are they trying to answer?

19:35 - Data examples from their blog

21:05 - Post: Fashion retailers have nothing to fear (yet) from the rise of Stitch Fix

23:35 - Post: Holiday sales rocket Peloton memberships ahead of SoulCycle active riders

25:05 - Post: Prime members deliver for Amazon every day

27:35 - Second Measure's product development process

29:35 - Finding good data scientists who work from first principles

37:05 - Why is credit card data so messy?

42:05 - Cleaning data

44:20 - Using their product for competitive analysis

47:35 - Their sales process

49:05 - Raising money from Goldman Sachs and Citi

52:05 - Focusing on a specific problem

54:05 - Keeping the product compelling when it's table stakes