# Data 101 for Startups > A NachoTuesday interview — the C-Suite Insights series from NachoNacho, the B2B SaaS and AI > marketplace. In conversation with Andrew Chen, Co-Founder, Explo. - **Page:** https://nachonacho.com/nachotuesday/video/Data-101-for-Startups - **Guest:** Andrew Chen, Co-Founder, Explo - **Guest on LinkedIn:** https://www.linkedin.com/in/andrewchen9/ - **Recorded:** 2024-03-13 - **Watch:** https://www.youtube.com/watch?v=aS1l3na3NGA ## Summary Andrew Chen, co-founder of Explo, introduces their embedded analytics solution that allows SaaS companies to seamlessly integrate white-labeled analytics and reporting into their own applications for their users. Explo connects to existing SQL databases and data warehouses, enabling the creation and embedding of customized dashboards. Andrew discusses the trend of data centralization in data warehouses like Snowflake and BigQuery, the growing importance of data governance and cataloging, and the crucial aspect of data connectivity for sharing insights with both internal and external stakeholders. He advises startups to define their data needs and end-users first, leverage startup programs from major data platform providers, and consider open-source tools to establish a cost-effective data strategy. Building strong relationships with early customers is key to obtaining valuable product feedback. Key Talking Points: Explo is an Embedded Analytics Solution for Integrating Data Reporting into SaaS Applications : It connects to existing databases, allows for the creation of white-labeled analytics interfaces, and enables seamless embedding within other applications to provide data insights to users. A Strategic Data Approach for Startups Involves Defining Needs, Leveraging Startup Programs, and Prioritizing Product Usage Tracking : Startups should focus on their specific data requirements, take advantage of cost-saving startup programs offered by data platforms, and closely monitor product analytics to inform development and understand user behavior. Building Strong Customer Relationships Facilitates Valuable Feedback and Data Collection : Engaging closely with early users through direct communication channels fosters trust and naturally yields crucial insights for product improvement and company growth. ## Full transcript Good afternoon, everyone, and welcome to another Nacho Tuesday. Today, I have Andrew Chen with Explow. Without further ado, Andrew, I’d love if you could introduce Explow and explain what you guys do. Andrew: Awesome, thanks, Andy. Thanks for having us as well. First off, I'm Andrew, one of the co-founders here at Explow. So, super high level: Explow is an embedded analytics solution. What that means is if you need to provide any sort of analytics or reporting within your own SaaS application to your users or customers, you can use our platform to do so. It's a fully white-labeled solution. You’ll connect to an existing SQL database or data warehouse, use our platform to build out the user experience, white-label it, and then embed it into your own application. Andy: Perfect. So, what got you to where you are in your career? What led you to start Explow? Andrew: Yeah, so taking a step back, first off, when I was in college, I went to school here in New York and met my current co-founder, Gary. It was sort of a typical college floor mate story. We became good friends and went on to work our own jobs after school. I worked in consulting at that time and was really into analytics and case studies. I used a lot of different data tools and technologies. At the same time, Gary, who became my co-founder, worked at Palantir, building a lot of different data solutions. So, we both had significant experience in the data world. When we came together just over four years ago to start a company, we knew we wanted to do something data-related. Personally, I always wanted to be an entrepreneur, so starting my own company was always part of the plan. I didn’t know when or where that would happen, but the timing worked out really well. We were both on board with the idea of pursuing this startup and went through the Y Combinator program in early 2020. We moved out to San Francisco and embarked on this journey together. Fast forward a year, and we landed on the current Explow product idea. It’s been a typical startup story—pivoting, testing out different products in the data space, and eventually recognizing the need for embedded analytics. It’s been off to the races ever since. Andy: That’s good to hear. YC is a great program, so congratulations on getting into that. What kind of data tools and processes should businesses be aware of in 2024? Data is increasingly important in every area of business, especially with the introduction of real AI that actually works. Andrew: There are a few different trends in the data space. In terms of tooling, over the past five to ten years, there’s been a huge push towards centralizing data and getting that data into a centralized data warehouse. Common names include Snowflake, BigQuery, and Redshift. We’re seeing a lot of our clients move towards these types of solutions, although there are many other tools competing in this space. Generally, companies are migrating from disparate systems to more centralized data warehousing. For companies looking to leverage their data better and mature their data stack, centralization is typically the first step. With AI and all this data getting collected and centralized, there’s also a growing focus on data governance and cataloging. Tools in this space are emerging to ensure data reliability, accurate interpretation, and understanding. As we accumulate more data, maintaining high-quality data becomes crucial. Lastly, where Explow comes in is around data connectivity. Once data is centralized and cleaned, it’s important to have a plan for sharing it with different stakeholders, whether internal or external. Andy: Tell us a little more about how your platform works in terms of data sources, what it does with that data, and how it interacts with different stakeholders. Andrew: For Explow, we connect directly to most SQL databases and data warehouses. We also connect to SQL-driven platforms or semantic layers like Cube. We don’t store or copy any data; we simply connect to existing data sources. On top of that, we offer a dashboard and report builder configuration application. You’ll use our platform to build out the interfaces your end customers will use. Once built, you white-label it, customize the design, and embed it into your application. We also have a security layer that allows for secure embedding. If you don’t have a SaaS app, we can spin up custom applications or portals for various stakeholders to securely view dashboards and reports. That’s the end-to-end process of how Explow is set up and connects to existing data stacks. Andy: Nice. So, you can work with not only data that the company itself provides but also pull from external sources and combine them into one comprehensive data strategy. Andrew: We actually don’t handle pulling data from external sources as much. There are other platforms and ETL tools that manage data centralization. We connect to the centralized data source. While we can connect to multiple databases, they all need to be databases or data warehouses. For example, if a startup wants to expose data from Stripe or Google Analytics, we have partners that facilitate connections to third-party sources and pull that data into a database, but we connect ultimately on top of that database. Andy: Got it. Makes a lot of sense. So, what is the best strategy for a startup, especially cash-strapped ones, to roll out a data strategy that could actually work for them? Obviously, many might not be able to use some of the enterprise applications out there. Andrew: Definitely. This is something our prospects and clients ask us all the time. I encourage everyone to think about their end goal and what they truly need in terms of data. It’s important to define what success looks like for your data strategy and start with tools and processes that can scale as your business grows. Building a solid foundation early on will help in leveraging data effectively as you grow. Andrew: Analytics and understanding the end consumers are crucial. There are so many data tools available, with options ranging from inexpensive to very costly. Understanding your end goals is key. For example, in the B2B SaaS space, a simple interface for basic product usage and analytics might suffice. At Explow, we set up Segment and use Amplitude ourselves, both of which have helpful startup programs. This kept our initial costs low and allowed for a straightforward setup to quickly get product analytics dashboards running. This was one of the first things we did to understand product usage, which was crucial for us. Other platforms might require different analytics, pulling data from various sources. In such cases, ETL platforms and data warehousing solutions with basic BI tools might be more appropriate. It really depends on your needs. There are many solutions out there that can accomplish various goals. Traditional BI tools like Tableau, Looker, and Metabase serve general purposes, while more specialized tools like Amplitude are designed for specific analytics, such as product analytics. Andrew: When it comes to startups, especially those with limited budgets, larger companies often offer great startup programs. For instance, Amazon and Google might offer $100,000 in credits, making the initial years almost free for many tools. Segment and Amplitude also have their own startup programs. Always look for these opportunities to get something set up quickly. You don’t need all the tools at once. Focus on what you need and get started with a few essential solutions. Additionally, open-source products can be a great option, offering a lot of configurability at minimal cost. Andy: That’s a good point. Many companies do offer startup programs as part of their onboarding strategy, knowing that if you become dependent on their tools, you'll stick with them. Tracking product usage early and often is crucial for reaching product-market fit. Understanding how your customers use your platform and where they encounter issues can prevent early-stage failures, which is a common reason for many SaaS businesses failing. Andrew: Exactly. At Explow, we also offer a free tier for clients to get started and conduct some initial product analytics. This isn’t unique to Explow; many companies offer free tiers that are well-suited for startups. Product analytics is essential for understanding what’s working and what isn’t. It helps in making informed product decisions and understanding your users better. Andy: Getting data from your customers is also important. What tips do you have for asking customers for information in an appropriate way, ensuring they’re willing to provide it without feeling overwhelmed or scared away from your platform? Andrew: The key is to focus on how much you can provide to your users rather than how much you can extract from them. Providing white-glove support and working closely with them will naturally lead to feedback. You don’t always need formal feedback sessions; feedback often comes organically during support calls. When we started Explow, we created dedicated Slack channels with our clients and worked closely with them through the sales and implementation process. This approach fostered a collaborative relationship, making it easier to get valuable product feedback. Even asking for a quick feedback session becomes easier when you have a strong working relationship. Andrew: It’s also helpful to gather data incrementally. Start with basic information like name and email for sign-ups, and as users engage more with the product, tailor your requests for additional information accordingly. Automated data collection can be useful, but nothing replaces direct conversations with users. Although automated data can provide insights, it’s often not as accurate as direct feedback. Having a mix of both approaches can be beneficial. Andy: Absolutely. Conversations with users reveal a lot beyond their explicit feedback. Observing their reactions to features and understanding their body language can provide valuable insights into how they truly feel about the product. Andrew: Yes, and while surveys and automated data collection are common, they often produce a lot of meaningless information if not strategically designed. Without a clear strategy, you might end up with a hodgepodge of data that’s hard to interpret and use effectively. Andy: I agree. Even with different methods of data collection, the reliability of the data can sometimes be questionable. It’s important to recognize these limitations but still make an effort to gather and analyze data as best as you can. Andrew: Definitely. There’s always a balance between trying new data collection methods and understanding their limitations. It’s worth exploring different approaches while being aware of potential biases and inaccuracies. Andy: Cool. So, what other data predictions do you have for 2024? Andrew: I guess what strategies will continue to gain more traction, and which new processes do you think will be introduced? You mentioned governance earlier and the role AI will play. How do you see companies evolving? I think there will be a continued push toward centralizing data. Data cataloging, governance, and observability will be very important. Many new tools are emerging in these areas, often focusing on enabling AI. From my perspective, a lot of tooling and processes will increasingly incorporate AI, as companies will need to leverage it more effectively. AI has generated a lot of buzz recently, and I expect this trend to continue through 2024. However, it's difficult to predict exactly how AI will evolve or which use cases and verticals it will disrupt most significantly. Even from my own experience, the interest in AI from clients and prospects can fluctuate. For example, a few months ago, there was a surge in interest, which then quickly subsided, only to return later. We’re actively testing AI features ourselves at Explow, which is exciting, but I don’t have a precise prediction on where AI will make the most impact in 2024. Andrew: It’s important for companies to keep in mind the potential of AI when setting up their data infrastructure. Even if AI isn’t an immediate focus, considering how it might be integrated later can make implementation easier. Keeping AI in mind while making decisions about data tooling can be very helpful. A lot of people rush to add AI features without considering how their unique data can be leveraged effectively. The goal should be to create valuable features for end clients that genuinely solve problems, rather than just adding AI for the sake of it. Andrew: Over the past six months, we've seen many companies launch AI features, some of which were helpful, while others were not. This generated a lot of buzz, but it's hard to gauge which initiatives will truly make an impact. Some AI-enabled tools are incredibly useful, while others fall short. I anticipate that AI will continue to be a major trend, but there will be many startups that don’t succeed, alongside a few that will excel. Another prediction for 2024 is that data connectivity will become increasingly important. At Explow, we recognized the need for companies to share data beyond their own organizations. While internal analytics and democratizing data within a company are crucial, there's also a growing focus on sharing data with clients and partners. This trend will likely continue, and it’s an area where Explow is positioned to make an impact. Andrew: Regarding security and privacy as data sharing expands to external stakeholders, it's a critical area. Ensuring data security within an organization is the first step. As data is shared, it's essential to manage access rights carefully. New tools are emerging to address these challenges. For example, Snowflake has launched products focused on secure data sharing, including distributing and even selling data with built-in security features. Explow is also designed with these concerns in mind, offering secure ways to share data with external user groups. Data governance and privacy on a global scale will remain challenging. However, many data-driven companies are increasingly aware of these issues. The rise in data privacy concerns and hefty fines for non-compliance have made it a top priority. Companies are now collaborating more with privacy teams and in-house privacy councils to ensure that product and technical decisions align with privacy requirements. This collaboration is a positive development. Andrew: There are definitely some challenges to consider with the increasing prevalence of automation and AI. For example, we’ve seen the potential of tools like ChatGPT and OpenAI, which highlight the value AI can bring. However, it’s important to stay alert and be aware of AI’s limitations, such as accuracy and reliability. Andrew: Avoiding overdependence on AI is crucial. While AI can assist with various initiatives and provide answers, it’s important not to accept its outputs uncritically. As AI technology evolves, it will become more accurate and powerful, but human oversight remains essential to verify and validate its results. Andrew: Ensuring that there is still a “human in the loop” to double-check AI-generated information will be increasingly important as automation and AI become more widespread across different functions. Andrew: On a different note, if you’re considering Explow, here’s what potential customers should know: We are very excited about the trends we’ve discussed, including AI and data connectivity. At Explow, our primary focus is to provide the best product experience for users and customers. Andrew: Our product is designed from the ground up for embedding within product teams and leaders. We are committed to helping you share data analytics with your users and customers effectively. As data sharing and connectivity become more critical, especially with external parties, Explow aims to be your go-to solution. Andrew: We are also working on features like Slack integrations and enhanced external email reporting. If your clients are asking for more data, we would love to connect and discuss how Explow can meet those needs. Andrew: Thank you so much for joining us today. For anyone interested in checking out this amazing product, you can find it on the NachoNacho B2B SaaS Marketplace. We’re offering a 10% cashback discount if you buy today. Andrew: Once again, thank you for your time, Andrew. It’s been great having you here. Andrew: Thanks, Andy. It’s been a pleasure. --- All NachoTuesday interviews: https://nachonacho.com/nachotuesday About NachoNacho: https://nachonacho.com/llms.txt