Franceschetti: US tech hiring competition and salaries have returned to 2021 levels
“We are back to twenty-twenty-one and that I think is becoming a problem in the U.S., meaning salaries are going out of control competition.”
Franceschetti: Angel investing gives founders valuable operational market intelligence via updates
“The amount of learnings that you get from being an investor is insane, because it's essentially you build your own intelligence. As you receive investor updates, you understand how the market is moving. What are the valuations? What are the multiples? What kin…”
Franceschetti: Eight Sleep maintains low single-digit annual subscription churn
“Is in the single digit low single digit yearly churn. Even if you compare to other companies that in the wearable space that are going public, we are better than them.”
Franceschetti: AI will enable the right companies to become holding companies
“Well, I think, so here is another theory that I have, and ours is just my opinion, but I think with AI companies will, the right companies will transform themselves in holdings.”
Franceschetti: Charles Leclerc used Eight Sleep two years before meeting company
“Charles already had our product for two years before we met, and we didn't even know.”
Franceschetti reveals Eight Sleep's two strict rules for athlete partnerships
“Well, there's two conditions for any deal now. First, they need to be, 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 want to hear the feedback.…”
Franceschetti: Eight Sleep co-founders separate work and personal life on Slack and WhatsApp
“We have two different channels, so one is Slack for work, and one is WhatsApp for private communication, so our life, and we never mix them”
Franceschetti will call employees at 2 a.m. for urgent issues
“If it's urgent, I call you at midnight, two a.m., three a.m., like, trust me, I'm gonna come to your door at five a.m. I'm that type of guy.”
Franceschetti: Keith Rabois and Delian Asparouhov did not realize Eight Sleep co-founders were married
“To the point where I think Delian and Keith, when they invested for the first year, they, I, I'm not sure that they were not even, they didn't even know we were married. Obviously, you disclose it when you do a round, so it has been disclosed in every round, b…”
Franceschetti has not taken a vacation or honeymoon since founding Eight Sleep
“I never took a vacation since when a sleep started. We didn't even have a honeymoon because we set the date of our wedding to be exactly one week after the end of the crowdfunding campaign.”
Franceschetti: Eight Sleep Retained Hardware Lead Against 3x Competing RSU Offer
“He, the company was paying him way more giving him RSUs, so liquid stocks, plus paying him probably three X more, but he loves so much what we do, how we work, And what we want to build that at the end decided to stay”
Franceschetti: Candidates cross-evaluating Anthropic and Eight Sleep are a red flag
“When people, sometimes it's still happening today that sometimes people say, oh, I'm at the final stage with Anthropic and innate sleep, and to me, that is a really bad red flag, Not even for the salary, but it means you're confused. There is no way that these…”
Franceschetti: Startup joiners should seek 100x to 1,000x equity upside
“I think people that join a startup, they should be driven, and it's important that they are motivated by, you know, potential financial success, and I agree, but that success will come by, you know, increasing the equity value from X to X. That is also why, to…”
Franceschetti: Promoting senior leaders requires buy-in from their families
“And so here is not just you committing to this life. If I give you the job, I expect you or I would like you that everything equal, you stay with us for the next two, three, four years, right? Otherwise I'm not going to bet on you. So go and talk to your wife.…”
Franceschetti: Eating pizza raises resting heart rate 10-15% and drops HRV 12%
“My heart rate Friday night when I have pizza is my cheat day. My heart rate rest goes up 10, 15%, and HRV drops around 12%.”
Franceschetti: 95% of health value comes from basics, not supplements
“Probably in health in general, I think really 95% of the value is just to be consistent and do the right things without going too crazy in terms of I don't know, products that you can take and supplements and all that. If you just have a very balanced life in …”
Franceschetti: Children born today will never work due to AI
“Well, I don't think if a kid is born now, by the time they are 20 years old, they will ever work. By then, I think AI will be at a point where humans don't work.”
Franceschetti did not speak English until he was 24 years old
“I didn't even speak English until when I was. 24.”
Franceschetti: An executive's job is pushing people, not being loved
“Your job as an executive is not to be loved. It's to help your people achieve more than what they believe it was possible.”
Franceschetti: Sleep tech will allow people to compress sleep to six hours
“Because I believe we will compress your sleep over time. So you might, Be able to sleep only six hours and get more rest than when you were sleeping eight hours.”
Franceschetti: Would not have started Eight Sleep knowing its true difficulty
“If I knew what we would have to go through, I don't think any human being would do that.”
Franceschetti: Founders must be naive about how hard starting a business is
“You need to be naive and you need to believe that it's a hundred X easier, and then you need to have the stamina while shit comes to handle it.”
Franceschetti: Eight Sleep faced severe financial trouble before fixing unit economics
“Meaning as a company, we have been in trouble a bunch of times until when we really fix our unit economics.”
Franceschetti: Eight Sleep has been profitable for two quarters
“And we have been profitable for two quarters now.”
Franceschetti: Price wars in physical goods ruin startup business models
“Once you get in a price war, prior with the physical good, you're in real trouble, because then the business will not work.”
Franceschetti: Eight Sleep mattress sales generate single-digit percentage of revenue
“So essentially, all our business is just the cover. We don't sell the mattress. If you go on our website, there is just the pod cover. You can add as an accessory, the foam part, which is the mattress. But you're talking about single digit percentage of our re…”
Franceschetti: Writing is the best way to build clarity of thinking
“The best way to develop clarity of thinking is writing, right? You need to write, because once you start writing your thoughts, you understand there are many things that are not clear, or that You still don't know you didn't develop.”
Franceschetti: Paul Graham and Keith Rabois excel at explaining complex ideas simply
“You see people like Paul Graham or Keith or Boyce, right? They are some of the greatest at expressing a very complicated concept with few words in something that I call it the grammar rule by something that my grandma could understand.”
Franceschetti: Eight Sleep's temperature feature improves sleep quality by 20%
“For us it's temperature, right? It's the game changer. And so I have this device that I can install on my bed that heats and cools each side of the bed and improves my sleep by 20%.”
Franceschetti: Lack of clarity stems from undeveloped thoughts and insufficient data
“Because they didn't think enough. They believe, they know, they believe they have a thought, but they didn't develop it properly, and they don't have enough data to support it, so they're confused. At the end of the day, the opposite of clarity of thinking is …”
Franceschetti: Decision proposals must present multiple options ranked by impact and effort
“I never like to see one option. I want to see multiple options, and you tell me why we are not pursuing the others, and we are pursuing this. I want a picture, a portfolio, and then we pick one based on impact and effort.”
Eight Sleep conducts all internal decision-making asynchronously in writing
“For us, everything happens in writing async, so we don't lose time.”
Matteo Franceschetti reserves daily calendar space for impromptu team calls
“I would say probably 20% of my meetings is impromptu, and so I just randomly call, and so I actually allocate time in my daily calendar to make sure that I have bandwidth to just randomly call my team and discuss things.”
Franceschetti: A company's project capacity equals its number of 'barrel' leaders
“Output usually is a function of how many barrels you have. Barrels are people in your company that can get everything done from zero to completion, right? And you have barrels and ammunition. Barrels can lead anything from zero to completion. Ammunition suppor…”
Franceschetti: Eight Sleep requires paired counter-metrics for every company initiative
“We don't do anything at eight sleep if there is not an opposite metric.”
Franceschetti: Big-company executives default to quality over startup speed
“The key usually with senior executives where You really need to push them because, in particular, if they come from big companies, they are more skewed towards quality and reliability, while instead you want to be bold and just ship something, 80%, take the ri…”
Franceschetti: Rigid bi-weekly goals kill startup agility
“The biggest thing is what I told them is they need to stop being too rigid on Bi-weekly or monthly goals, because if they're too rigid on that, when things happen and in a startup things happen every day, they are not agile enough to fix them.”
Franceschetti: Startups overthink pricing changes and overestimate their brand reach
“A hundred percent disagree. I think we overthink because the whole point is you're a startup. How many people really know your brand? Even if you're big, if you're growing well, you know, you're not Apple, right? And so don't fool yourself thinking that you ar…”
Franceschetti: Growth-at-all-costs execs fail in CAC-efficient startups
“If you find people that were able to scale a business from a hundred million to a billion, but at the time where it was growth at all costs, and they join your company is designed around CAC efficiency, it will be really hard for them, right? They have already…”
Franceschetti: Big tech execs lack the pirate mindset startups require
“If they come from very large companies, the requirements compared to a startup are very different. We are pirates. They are the Navy, right? These people need to be able to launch a new product in two days, just because they want to test it and be fine with th…”
Franceschetti: Eight Sleep operates under a default 'no hire' rule
“We are a default and no hire. The default is if you come to a sleep, we don't hire you, unless you really blow our mind.”
Franceschetti: Eight Sleep's 2019 rushed hiring led to high failure rates
“So, we hire really fast in 2019. I would say we probably screw up a large percentage of all the people we hire, because we had that approach.”
Franceschetti: Pain of hiring wrong person far outweighs delaying hire
“And so, what we learn is the pain that you go through If you hire the wrong person, is probably the next bigger than delaying the hire by a couple of months.”
Franceschetti rejects 50% of final-round candidates over cultural alignment
“And then there is my final step, which is still fifty-fifty, and sometimes I feel so bad as a CEO, but if I don't click culturally with the person, I still pass, and I'm close to 50% pass.”
Franceschetti has interviewed thousands of candidates using the same playbook
“And I run all the interviews with the same playbook, and that helps me because now I have seen thousands of candidates with the same playbook, the same questions, right?”
Franceschetti: Inability to cover five jobs in 25 minutes indicates candidate fluff
“With the great people in 20, 25 minutes, I can go through five jobs there. Fast. There are some people where you go through two jobs in 30 minutes, and that is another red flag because you can't.”
Franceschetti: Multiple candidate RIFs reflect poor company selection judgment
“I think even though you want to see a pattern, I see sometimes people that have been part of three RIFs. But you know what you need to think there is, let's say there is a RIF after a year, or even six months, sometimes you see it, and you see this happening m…”
Franceschetti: Top performers rarely care about job titles
“Some of the best people, they don't really care about title.”
Franceschetti: Eight Sleep never promotes ICs to manager without prior squad leadership
“We don't make anyone a manager unless they already led a bunch of squads successfully. So my step is you will never become manager immediately, right? Going from IC to manager. You need to be a manager before you are formally a manager.”
Franceschetti: Eight Sleep only considers title changes for top performers
“If you are a top performer in the company, probably you're at the point you're not asking for a title change, but if you do, that is the only case when we consider it.”
Franceschetti: Studying operational playbooks weekly is time well spent for founders
“But it makes the difference. I can guarantee you that is time that is well spent.”
Franceschetti refuses internal meetings without a written agenda or memo
“I will not take a meeting with anyone in the company if I don't get an agenda slash memo.”
Franceschetti: Training employees to write great agendas takes six months
“And usually probably takes at least six months to develop someone to write an incredibly good agenda.”
Franceschetti: Tasks without explicit deadlines are due the same day
“In my mind, if people talk to me and they don't set a deadline, it's the same day.”
Franceschetti: Sunday work for high-stakes Monday fundraising is non-negotiable
“If I have a major massive meeting that could drive a, Multi-million dollar fundraiser at seven a.m. On a Monday, I think is not debatable. I'm doing the best for the organization and for the job of hundreds of people.”
Franceschetti: Reading speed is the best indicator of an agenda's quality
“The speed at which I can read an agenda is indicative of how good is the agenda, because I can go through it really quickly.”
Franceschetti: Effective meeting agendas should be concise, not long documents
“The point of the agenda is not about being long. No one wants to read long documents.”
Franceschetti spends one hour daily reviewing meeting agendas before starting work
“I say usually an hour every day before I start working just to review all the agendas of the day.”
Franceschetti: Agenda writing skills are built through trial and error, not training
“And at the beginning, you will write something that is long, that is not clear, is not data-driven, and the executive will help you. But it's trial and error.”
Franceschetti: Preferring meetings over agendas stems from lack of writing practice
“That is the typical answer of someone who didn't write agendas.”