X Marks the Spot: Xfernet Spotlight Series on Technology Leaders in Los Angeles
This interview series is designed to showcase successful entrepreneurs and executives who are recognized thought leaders and visionaries in the Los Angeles technology community.
enables marketers to run smarter marketing campaigns through the use of artificial intelligence and predictive algorithms. The marketing software aggregates more than 200 different data points about customers and analyzes the data to recommend actionable insights for brands like Target, BCBG and Wet Seal. Led by CEO Jerry Jao, Retention Science takes the guesswork out of marketing and has been named the Most Innovative Startup in Los Angeles by Inc. Magazine in 2015.
X: You have a truly fascinating background. You started your first business at 8 years old by recycling plastic bottles and your second business at 14 years old selling comic books and video games. You also attended UC Berkeley as a full-ride scholar, graduated in three years, and then later on went to Yale Graduate School of Management. In 2010 you started your first marketing software and have been an entrepreneur in the tech industry ever since. From your unique perspective, what does technology and innovation mean to you?
JJ: Thanks for the kind words! I’m just a normal guy who enjoys trying random things!
More than ever, technology has transformed the way we live, work, and interact with one another. From Uber to Snapchat, many innovative mobile apps were created to help us become more efficient than ever. The world feels smaller because I can video chat with my mother who lives in Taipei with a click of a button for free, and that is incredible! (I remember having to buy those phone cards back in early 2000) …
Separately, there have been a lot of disruptive ideas in commerce that are applicable to our industry. The fact that we can buy something that we’ve never touched on the Internet (including cars, and other “considered purchases”) and have it delivered to our doorstep the next day was a foreign concept to many until early 2000. It changed the way we consume, and we don’t have to wait in line to shop anymore. At Retention Science, our mission is to leverage artificial intelligence and predictive algorithms to improve consumers’ experience with brands they love.
Technology has allowed entrepreneurs like myself to create something out of thin air and test out ideas quickly. Many of us have tech to thank for the opportunity to innovate and start companies!
X: Often technology companies are very focused on developing their product and going to market. We don’t often hear about the role that technology and internal IT plays in developing and maintaining a business from an idea at inception to going live, scaling up, and eventually becoming a full enterprise like Retention Science. How do you run and manage your internal IT?
JJ: At Retention Science, building a scalable IT infrastructure is one of the most important investments we make as an enterprise SaaS company. For example, we work with brick and mortar retailers such as Target, and digital media companies like M-Go, in which we analyze billions of customer transactions and other data points each day. As a result, data processing speed is critical to our success. The only way for us to accomplish this goal is by investing inefficient and scalable IT infrastructure in the first place. If we had not built out a very effective processing system (within our back-end infrastructure), we would not be able to support big businesses and the volume of data that we’re analyzing each day.
Start-ups begin with an idea / prototype, and in the early stage, most of us don’t have the resources to invest and build out a set of IT infrastructure that the business doesn’t need just yet. We know that in the early days, building up a strong IT foundation can be a luxury since most of us are just trying to build a business. When you are just trying to get something started,you’re not necessarily thinking about what role infrastructure and IT will play in the sustainability of your technology. Therefore, having the vision to invest in IT infrastructure early, even before your need arises, is imperative.
X: I would like to expand on that question a little bit more and ask if you spend a lot of time researching emerging technology, vetting vendors of new technology, and seeing what would be a great fit for Retention Science?
JJ: We spend a good amount of time in R&D to make sure we at least know what the latest and greatest technologies are on the market. Once we identify emerging technologies that can help us become more efficient, we will dive into them deeper to make sure that there are tangible benefits to our business. Examples of that can include: automation of testing, computing speed, etc.
X: Based on your geographical location here in Los Angeles, what has it been like in the tech centric business of Los Angeles?
JJ: It is really exciting. I started and bootstrapped two other companies previously before settling in LA in 2012. In my humble opinion, there is not a better time to start a company in LA than today. We’ve all heard and/or read about the Mayor’s support for the tech ecosystem. There’re also many more institutional investors that are based in LA like Upfront Ventures that can invest in start-ups at multiple stages as well as technology accelerators like MuckerLab that help entrepreneurs incubate their ideas further. There are tech events almost every week. It has been fascinating to observe and be a part of this growing community over the last 4 years. I’ve had the privilege of meeting so many experienced and successful founders that I can learn and seek advice from, as well as meeting and mentoring younger CEO’s to help them get started. It has been an incredible experience to witness the growth!
I also believe the LA tech community is more nurturing and supportive of each other. I feel that it is a big differentiator from the Bay Area where people are focused on building their company into the next “Unicorn” (or whatever we want to call it). I think LA tech is still maturing (while there are plenty of successes to follow), but many of the entrepreneurs I meet ( myself included) have a chip on their shoulder and want to prove that they can build great companies in LA too. I found that we help each other out more (vs. when I was based in SF as a founder),and that is a very special characteristic that is worth maintaining.
X: What is some of the key advice you can give to other entrepreneurs here in LA and around the world that are looking to get the most out of their internal IT?
JJ: It is really important that you understand the type of tech you need to run your business and be successful. I have noticed that a good amount of entrepreneurs do not have an engineering (pure tech) background, myself included, so it is even more important that we have a technical co-founder or reliable technical advisors to help guide us through those important decisions.
X: What is next for Retention Science and yourself?
JJ: 2016 will be a big year for us. We are privileged to be working with many innovative companies, and there are still plenty of opportunities to grow and improve. We are also looking to double our team size, so being able to hire well is a big focus. I always say to our team that we want to do things thoughtfully and methodically. I don’t want to grow for the sake of growing. I think that sometimes happens with start-ups because once we raise venture capital, we’re supposed to deploy the capital quickly to accelerate growth. However, I believe that some business growth can’t be forced. While it can be accelerated with more people, it is important to do it organically too.
Our team is excited about growing and trying many new technologies this year, innovating, and coming up with new product features. We’re actually doing a boat party to kick off the year in a couple of days, I think that will be a fun way to kick off 2016!
As for myself, I am content. I signed up for this role, and things can always improve personally. But for now, my only focus is to build a great company that my team feels proud of and is excited to be a part of. I can find a better work life balance. My team jokes about me forgetting to eat frequently, and whenever they see me at lunch they’re surprised. Also, I am on the road a lot (I traveled to 2-3 cities each week in Q4 2015), it’d probably be a good idea to exercise more as I’ve been growing horizontally.
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