The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
00:37:55 · Harry Stebbings, Matteo Franceschetti
[00:37:55] S1: But what would you advise founders on lessons from how to get great talent? And then it can be celebrity investors too, pop stars, DJs, you name it, and how to get the most out of them, or do they just not have value? [00:38:05] S0: Well, there's two conditions for any deal now. First, they need to use the product. If they already use it, they bought it on their own, perfect, now we can talk about not doing a deal. If not, they need to try it, and then we wanna hear the feedback. They need to know their product, otherwise it's just a pure business transaction, and I don't like it. Second, I want to have a direct relationship with them. Usually, sometimes managers, they don't want that, and they want to try to be in the middle. But if I don't have the direct relationship with the athlete, we're not going to do the deal, because then it's just a financial deal, and at this point, we don't care. I want to be connected to the athlete. I want to know that they love our product, and if they don't, it's fine, but then the relationship will never work, particularly in a product like ours, where these people, the biggest value they do is just by talking to their friends about how good our product is. They really need to be both in. If they just have a stake in our company because they put a few million dollars, you don't go anywhere.
00:38:05 · Matteo Franceschetti, Harry Stebbings
[00:38:05] S0: Well, there's two conditions for any deal now. First, they need to use the product. If they already use it, they bought it on their own, perfect, now we can talk about not doing a deal. If not, they need to try it, and then we wanna hear the feedback. They need to know their product, otherwise it's just a pure business transaction, and I don't like it. Second, I want to have a direct relationship with them. Usually, sometimes managers, they don't want that, and they want to try to be in the middle. But if I don't have the direct relationship with the athlete, we're not going to do the deal, because then it's just a financial deal, and at this point, we don't care. I want to be connected to the athlete. I want to know that they love our product, and if they don't, it's fine, but then the relationship will never work, particularly in a product like ours, where these people, the biggest value they do is just by talking to their friends about how good our product is. They really need to be both in. If they just have a stake in our company because they put a few million dollars, you don't go anywhere. [00:38:58] S1: Who would you most like to have on the cap table who you don't have? Probably... Do you have Cristiano Ronaldo? No. He would be amazing. If you've seen pictures of him training, like, I'm a straight man. My God, this guy's body is incredible. Looked at it, then I looked at myself, and it just felt like, Oh, dear Harry.
00:38:58 · Harry Stebbings, Matteo Franceschetti
[00:38:58] S1: Who would you most like to have on the cap table who you don't have? Probably... Do you have Cristiano Ronaldo? No. He would be amazing. If you've seen pictures of him training, like, I'm a straight man. My God, this guy's body is incredible. Looked at it, then I looked at myself, and it just felt like, Oh, dear Harry. [00:39:18] S0: For us, there is a big difference between the athletes that we can disclose and the athletes that use the product. Some of the top, top tennis players, they ping us, then in all the Grand Slam, they sleep on our product. In F1, we have probably 80% of Formula One drivers sleeping on the product, including the people that are winning, but we are not allowed to share that, right? It's a private confidential relationship. [00:39:41] S1: Do you have any wild stories of delivering it somewhere crazy for someone last minute because they knew Yeah, it yeah. You don't need to say the person.
00:39:49 · Matteo Franceschetti
[00:39:49] S0: Yeah, yeah, I'm not sure the name, but there is this really, really famous football player. And so he tries the product at a friend's house, and then his team reaches out and say, The athlete wants the product, can you install it for him? Can you come and let him try it at all? So the team goes, but once they get there, he has this very unique, special size 300 ks mattress. And our product doesn't fit because we have, I don't know, the queen, the king, not the standard sizes, but this was unique and customized. And so the team is leaving, but then the athlete says, No, no, no, okay, would you mind installing these in my kid's room? They say, Fine, because that was a standard size mattress, and so we install it there. A week later, the athlete calls us and say, Look, I'm gonna give away my 300 ks mattress, but I'm gonna move Eight Sleep in my bedroom. I need it for my own performance. And so he threw away the 300 ks mattress, and now he sleeps on Eight Sleep. That was really sick. There is this other story that is really cool. So we give one of the most famous actors in the world, gets our product as a gift, and he loves it. He absolutely loves it. And then he buys 10 of our products for everybody in his family. Then I go to this dinner, and this famous actor comes in, and there is me and some top, top CEOs, but CEOs of 100,000,000,000 plus companies, right? He starts shaking hands, and he spends literally three seconds with everybody, high, three seconds. Then he comes to me, and he realizes I'm the CEO of Eight Sleep, and at that point we start talking together for like literally five minutes, to the point where the other CEOs before, they were looking at me like, Who is this guy? And after that, they were looking at me with a lot of respect.
00:41:30 · Harry Stebbings, Matteo Franceschetti
[00:41:30] S1: What is the most amount of Eight Sleeps one person has bought? [00:41:35] S0: A very famous person that everybody knows has 55 for his houses, but then there are other people that buy through embassies, and they bought in the hundreds. [00:41:45] S1: Someone bought 55 for their houses? What? Yeah. Do you get a discount? [00:41:53] S0: No. These people don't ask for discount. They just reach out and they... Their team and they just ask to help for the setup or not to to place such an order because the... That is wild. [00:42:05] S1: I love that. [00:42:06] S0: Well, there is another story. There is this couple, and they reach out because wherever they go, if they stay in a hotel for, I believe, longer than three or four nights, they buy an Eight for that, to install in that hotel. Yeah, because they can't sleep without that, and obviously they're... [00:42:24] S1: Do you mind that Eight Sleep's such a premium product? Would you like it to be more for everyone? [00:42:28] S0: We want to democratize sleep, so the way I always say is imagine, if we were Tesla, we are the Model S. There will be the Roadster, so there will be something even better, but you will also see us coming out with the Model X and Y and three. [00:42:42] S1: Do you worry about income inequality? I know it's kind of a... But we've talked about people just buying 55. You operate in a world where you see extreme wealth. I do as well. Do you
00:42:42 · Harry Stebbings, Matteo Franceschetti
[00:42:42] S1: Do you worry about income inequality? I know it's kind of a... But we've talked about people just buying 55. You operate in a world where you see extreme wealth. I do as well. Do you [00:42:51] S0: share the concerns? I do. The way I think is, okay, how do I democratize better sleep? If our product was $100 probably by now we would have sold billions, like literally, because people really, really like the benefits of what we do. And so it's our job as a group of, now an engineering group, even if I'm not an engineer, to make sure that we can keep reducing prices so everybody can get better sleep. [00:43:14] S1: You said earlier about your co founder, Alexandra. I hope it's okay. She's also your wife. Yep. How does that work most efficiently? What lessons do you have? What works? What doesn't work?