# Labour, Engineering, Social Media, GrokBots, Cybercabs: 7 Predictions for How AI Changes the World 20VC with Harry Stebbings · 2026-09-12 Eight Sleep Co-Founder and CEO Matteo Franceschetti tells Harry Stebbings that AI has transformed how his company operates: engineers stopped coding a year ago, AI agents run an email marketing business making close to $100M with zero employees, and paid media agents manage hundreds of millions in spend. He argues salaries are back to 2021 insanity, so Eight Sleep hires in Europe, and predicts AI spend will grow from 5% to 50% of engineering budgets while unit costs fall. He explains why Meta's reported CAC is 20% lower than reality, why word of mouth drives 40% of revenue with single-digit yearly churn, and why companies will become holding companies like Xiaomi. He also details the 300K mattress footballer story, Charles Leclerc's sponsorship and investment, selling in China through super apps like WeChat and RedNote, running with just 160 employees, and predicting kids born now will never work for money. ## Questions this episode answers ### How does Eight Sleep run email marketing with zero employees? Matteo Franceschetti says when the two-person email team's leader left, his co-founder Alexandra built multiple bots in three days that now run all email marketing, a channel generating close to 100 million in revenue, using Claude and hundreds of internal AI agents. [15:16](https://20vc.podhood.com/27f3c2b3-d71c-4503-9b32-5d92e6a7e670?t=916000) ### How does Eight Sleep run incrementality tests to measure channel CAC? Matteo Franceschetti explains they don't trust platform attribution, since Meta's reported CAC is about 20% lower than the true CAC. They pick two similar-performing geos, turn off a channel like Meta in one, and measure the revenue delta to calculate each channel's real incremental value. [6:31](https://20vc.podhood.com/27f3c2b3-d71c-4503-9b32-5d92e6a7e670?t=391000) ### How many employees does Eight Sleep have and what is its revenue per employee? Matteo Franceschetti says Eight Sleep runs with only 160 people, with revenue per employee higher than Apple's. Similar companies at their revenue stage have around 1,000 employees, and he predicts 250 people making a billion in revenue within three years. [1:02:10](https://20vc.podhood.com/27f3c2b3-d71c-4503-9b32-5d92e6a7e670?t=3730000) ### What does Matteo Franceschetti predict about AI and the future of work? Matteo Franceschetti predicts kids being born now will never work, at least for money, because by the time they are 20 AI will be advanced enough that humans won't need to work. He believes universal basic income will have to happen, funded by taxing more efficient companies. [1:07:03](https://20vc.podhood.com/27f3c2b3-d71c-4503-9b32-5d92e6a7e670?t=4023000) ## Key moments - **[0:00] Intro** - **[1:34] Hiring wars** - [1:34] Matteo Franceschetti says tech hiring is back to 2021 insanity, with engineer and PM salaries out of control - [3:11] Eight Sleep CEO Matteo Franceschetti calls angel investing a game changer that builds a founder's own market intelligence - **[4:11] Hardware & channels** - [4:11] Hardware founders get BOM and COGS wrong by at least 50% in the first months, warns Matteo Franceschetti - [4:44] Eight Sleep gets 40% of its revenue from word of mouth, even at massive scale, says Matteo Franceschetti - [5:13] Eight Sleep cracked TikTok in six months with a UGC influencer program and capped-CAC budget scaling - [6:35] Meta's reported CAC is about 20% lower than the true CAC, so Eight Sleep runs its own incrementality tests by state - [8:05] Scale one growth channel at a time, starting with Meta, or you throw money out the window, says Matteo Franceschetti - [11:24] Eight Sleep's subscription churn is low single digit yearly, better than public wearable companies - **[15:13] AI-run marketing** - [15:13] Eight Sleep fired its email marketing team and replaced it with AI bots that now drive close to $100M in revenue - **[18:18] Engineering with AI** - [18:18] "Our engineers stopped coding around a year ago" — Eight Sleep runs on hundreds of AI engineers, mainly Claude - [19:18] AI spend will jump from 5% to 50% of engineering budgets but total cost will fall, predicts Matteo Franceschetti - **[21:46] Holding companies** - [21:46] AI will turn companies like Eight Sleep into holding companies running 10 different businesses, predicts Matteo Franceschetti - [23:16] Chinese EV makers like Xiaomi design cars that look like Ferraris and will hollow out the European car market - **[25:11] Humanoids** - [25:11] Humanoid robots will be what cars were in the 1960s — a trillion-dollar market automakers must chase, says Matteo Franceschetti - **[28:31] Selling in China** - [28:32] Chinese consumers never buy on websites — Eight Sleep had to relearn e-commerce entirely on WeChat and RedNote - [31:10] In five years your bot will buy a cyber cab that earns money for you, and your bed will be a medical platform detecting diabetes - **[35:55] Brand & Leclerc** - [36:21] Matteo Franceschetti tried to sponsor Charles Leclerc in F2, and the Eight Sleep deal was done over one dinner in days - [41:49] A famous footballer threw away his $300K mattress after a week sleeping on Eight Sleep in his kid's room - [43:53] One very famous person owns 55 Eight Sleeps for his houses, and embassy buyers order in the hundreds - **[45:53] Married co-founders** - [45:53] Married co-founders Matteo and Alexandra Franceschetti keep work on Slack and life on WhatsApp, never mixing the two - [51:49] After YC demo day, Matteo Franceschetti flew to China saying he'd return only when manufacturing was fixed — he came back four months later - **[56:41] Talent battles** - [56:41] "I'm at the final stage with Anthropic and Eight Sleep" is a red flag — the two jobs are nothing alike, says Matteo Franceschetti - [1:02:07] Eight Sleep runs on just 160 employees with revenue per employee higher than Apple — and targets 250 people at $1B revenue - **[1:05:45] Quick-fire** - [1:07:03] Kids being born now will never work for money, predicts Matteo Franceschetti - [1:13:00] Matteo Franceschetti's father died while he was still a lawyer in Milan, never seeing his Silicon Valley life begin - [1:15:20] From averaging 23/30 to magna cum laude: the magazine article that made Matteo Franceschetti learn English and escape Ferrara ## Speakers - **Harry Stebbings** (host) - **Matteo Franceschetti** (guest) ## Topics Tech Market Trends ## Mentioned Anthropic (company), Eight Sleep (company), Ferrari (company), Google (company), Meta (company), OpenAI (company), Xiaomi (company), Claude (product), Grok (product), RedNote (product), TikTok (product), WeChat (product) ## Transcript ### Intro **Matteo Franceschetti** [0:00] Well, our engineers stopped coding around a year ago. What they have is hundreds of AI engineers, and that is how we can achieve what we are achieving at scale. **Harry Stebbings** [0:10] How much do you spend on crawl a month? **Matteo Franceschetti** [0:12] Um. **Harry Stebbings** [0:13] Name the hot seats today: we have Matteo Franceschetti. What a fantastic surname. The joys of doing a second show with someone is you get to ask questions that no one else can answer. That's what happened today: we have a totally off-the-cuff, very unfiltered discussion with probably one of the most impressive founders in hardware, having scaled a business to multi-billion dollar valuations, single-digit churn rates, incredible global business that's now open even in China. This is one of the most unfiltered versions of Matteo and Eight Sleep that you have seen yet. **Matteo Franceschetti** [0:41] A great brand with a shitty product goes nowhere. I'm extremely demanding. I'm a weirdo, and so I can be a husband on one side, but business-wise, no mercy. Sometimes people say, "Oh, I'm at the final stage with Anthropic and Eight Sleep," and to me that is a really bad red flag. There is no way that these two jobs are any way similar. Our revenue per employee is way higher than Apple. Kids that are being born now will never work. At least for money. **Harry Stebbings** [1:06] Ready to go? Matteo, it is so good to have you on the hot seat, dude. You know, last time we did this show and you had, like, a hiring playbook, and I remember it went, like, insanely viral afterwards, and so many people talked to me about that ever since we did it. So I'm really excited for this as a second discussion. Thank you for doing it, dude. **Matteo Franceschetti** [1:33] Yeah, thank you for having me. ### Hiring wars **Harry Stebbings** [1:34] I think that hiring today is harder than it's ever been, just because of the prices on offer at OpenAI, Anthropic, and some of the other places. Even the shiny new hot startups. How do you think about that? Am I wrong? Has it changed in terms of talent competitiveness? **Matteo Franceschetti** [1:53] We are back to 2021, and that, I think, is becoming a problem in the U.S., meaning salaries are going out of control. Competition. **Harry Stebbings** [2:03] What makes you say that? Like, engineer salaries? **Matteo Franceschetti** [2:06] Any salary, even for product managers, are out of controlright now. They get insane offers from any company. Obviously, there is a lot of money going around, and so we are focused more and more on hiring in Europe and outside the U.S. Because the other problem is not even the salary, and it's not even attracting them on T zero, but it's retention. Because then they keep receiving offers. If you are a cool company with a cool brand, then they keep receiving offers over and over at a higher valuation. I mean, a higher salary. **Harry Stebbings** [2:42] Have you lost people to OpenAI and Anthropic? You know, I'm invested in many companies, and they're just like, "God, we're getting eaten alive by OpenAI, Anthropic, Cognition," you name these hot companies. **Matteo Franceschetti** [2:52] Yeah. With Couple. The other ones could be AI companies that are doing extremely well, or they just raise money. So it's normal competition. But sometimes the delta in salary and in comp is so big that at that point there is nothing you can do. **Harry Stebbings** [3:11] We mentioned Cognition a couple of times. We were talking earlier about your angel investing as well. Can I ask you, how has being an angel investor changed how you think about operating? **Matteo Franceschetti** [3:21] It's a game changer for me. And I think that is something it's not shared enough, particularly on X. 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 kind of profiles they're hiring, what channels might be working. And I receive this from companies that are not competitive with Eight Sleep, but as a founder, you just get a sense of the market, and I find that super valuable. **Harry Stebbings** [3:52] What's been the biggest lesson from angel investing? **Matteo Franceschetti** [3:55] The biggest learnings is always on fundraising,right? You see how much they're raising and what valuation, what multiples, what investors. That's one. The other biggest lesson is for other companies that are still consumers to see channels, what channels work for them. **Harry Stebbings** [4:11] What do investors not understand about hardware that they should? You're advising me. I'm your buddy. I have a fund, and I want to invest in hardware. What do you like, dude, before you do it, you should know this? ### Hardware & channels **Matteo Franceschetti** [4:23] That probably the founders in the first year of the company, or in the first, probably, let's say, three months, they don't fully understand what the cost of producing that device will be. They don't understand the return rate. And so everything they tell you about BOM and COGS will probably be off by at least 50%. **Harry Stebbings** [4:41] Does CAC go down over time? **Matteo Franceschetti** [4:44] It really depends. And so that is another thing you want to assess, which is word of mouth. In our case, word of mouth keeps compounding. We are around 40% of our revenue, even at our size, which starts being really big. It's 40%. **Harry Stebbings** [4:59] 40% of your revenue stays word of mouth? **Matteo Franceschetti** [5:01] Yep. **Harry Stebbings** [5:02] What's your second biggest channel? **Matteo Franceschetti** [5:04] Then you start getting into paid media. **Harry Stebbings** [5:07] Yeah. And that's just Meta? **Matteo Franceschetti** [5:09] Yeah. Then it becomes Meta, Google, TikTok, and all those channels. **Harry Stebbings** [5:13] Can I ask, how do they compare? I'm a content, hopefully, specialist at this point. No one that I speak to has managed to make TikTok work. Have you? **Matteo Franceschetti** [5:23] We did. Actually, this year, in the past six months. **Harry Stebbings** [5:25] How? **Matteo Franceschetti** [5:27] It's usually a matter of amount of content that you can generate with TikTok influencers. **Harry Stebbings** [5:36] So it's about getting a UGC program in place? **Matteo Franceschetti** [5:38] Yep. **Harry Stebbings** [5:39] Is there a big budget for you tied to it? **Matteo Franceschetti** [5:42] The way we usually approach these channels is we start unlocking a small budget per week. We start looking at the CAC. We set a cap to the CAC, and then they can deploy as much as they can within that cap. But then as they prove it, they can deploy more and more money. So to me, they could deploy $100M if they're within CAC, the cap of the CAC. The important thing you need to do regularly, probably every six months, is an incrementality test. And so we might turn off TikTok in certain states in the U.S. or in certain geos, and we start A/B testing what is the growth rate or is the revenue rate. So we want to see how much each channel is incremental, because we don't look at the CAC from the platform. We have our own models now that determine the CAC of each channel. **Harry Stebbings** [6:35] Sorry, can you tell me about that? You have your own models to determine the CAC from each channel. Why is that? **Matteo Franceschetti** [6:41] Well, because you cannot trust there will be an excess of attribution from the same platform. We do the same with Meta. If you look at the CAC on Meta, it's probably 20% lower than what the true CAC is. And the only way you can do it is by doing these incrementality tests. And so let's say you pick two geos that they deliver, they perform similarly. Let's say you pick Texas and, I don't know, California. That is not theright example, but. **Harry Stebbings** [7:09] Dude, you're speaking to a Brit. That'll totally work for this example. **Matteo Franceschetti** [7:12] Yeah. And so then you turn off Texas, and you start seeing what is the delta in performance of that state versus the other. So how much revenue you lose. So if one was, if they were both growing 50% year over year, and you start turning off Meta in one or the other, you can immediately calculate the value of Meta for that state. **Harry Stebbings** [7:35] Does every brand need to have their own models to accurately? **Matteo Franceschetti** [7:39] Oh, it's 100%, because otherwise they just fool themselves. **Harry Stebbings** [7:43] When did you start? Because it's one of those ones which you can't do from day one. **Matteo Franceschetti** [7:46] No. And you will screw up multiple times. And the point is, you need to keep doing it, because as you add more channels, the incrementality of each channel will not be the same. **Harry Stebbings** [7:59] How did you think about that channel addition? Because I see so many founders try and be everywhere to everyone. **Matteo Franceschetti** [8:05] Yeah. **Harry Stebbings** [8:05] And how do you think about that? **Matteo Franceschetti** [8:07] I disagree with that. So you need to go one channel at a time. I was even talking to a common friend recently who was asking me about that and say, "Okay, can I go in all these channels? How much money should I put? Should I start putting 100K in each of them?" And I said, "No, no, no. You go one by one. You start with Meta. It's probably the biggest and the one that you should prove the fastest. And you start with, based on the size of the company, a certain amount per week. You set a cap to the CAC you want to achieve, and then from there you start scaling only if you are within CAC. Because otherwise you start throwing money out of the window. Your growth people, they will always want to grow faster. And so they will always want to spend more, and then you start losing control. And what happens then? Let's say by the end of the year you realize you screw up, and so you start pulling back, and then the following year you're not growing year over year because you're spending less. And so you need to be disciplined now if you want to be successful next year and keep growing year over year. **Harry Stebbings** [9:08] It's really interesting about how you kind of gamify growth numbers, because you'reright. You spend, you get 400% growth, you pull back hard and you get 70%. Good luck fundraising when you're going from 400 to 70. **Matteo Franceschetti** [9:19] Yeah. We could be growing 50% more if we wanted year over year this year just by spending more, but then next year you're in trouble because your CAC is upside down. **Harry Stebbings** [9:27] Do we care about economics from day one? You said there about start with Meta. Do we care about economics from day one in terms of optimization, or actually is it like, "Hey, customers are engaging, they're liking product. If we're doing a one-to-one, you know, for every dollar we spend, we're getting a dollar back, great." Or should we be looking for optimal returns early? **Matteo Franceschetti** [9:48] Well, in our case, we look at the immediate payback period. This is actually something where Keith was really pushy, and he was correct since day one. So he wanted us to have an immediate payback period. And then we have what we call contribution margin. So what is the margin on day zero? Then we have a subscription, and the subscription will compound on top of that. But we want to have that contribution profit on day one to be really healthy. If we were compressing that, we could be growing 50% more, but then the business wouldn't be public ready or as healthy as it is today. **Harry Stebbings** [10:25] What would you most like to do if economics were not a part of your business? It could be, like, massively increase the quality of a certain point. It could be pour fuel on the fire on that like never before. Take economics aside. **Matteo Franceschetti** [10:37] Well, you could reduce prices, and I think we will see an acceleration. Or you could just deploy probably more into marketing, which is probably what I would prefer. I'm never a fan of compressing prices. You know what Andreessen says? That if you have a great product, people will pay for it. But at our stage as a company, even if we start fairly large, brand awareness is still probably the biggest bottleneck. **Harry Stebbings** [11:03] You have a subscription business as well, which obviously really provides a lot of juice to your margins. Because you have an upfront cost in the thousands, it's a relatively expensive product for a lot of people. Do you just inherently have very low churn rates on your subscription product because you have the buy-in of multiple thousand dollars invested upfront? **Matteo Franceschetti** [11:24] Yeah. It's world-class. Our churn is the lowest of any company you can think of. **Harry Stebbings** [11:30] What is the churn? **Matteo Franceschetti** [11:32] It's in the single digit, low single digit yearly churn. Even if you compare to other companies in the wearable space that are going public, we are better than them. **Harry Stebbings** [11:45] Who could that be? **Matteo Franceschetti** [11:46] Who could that be? **Harry Stebbings** [11:47] I don't know, dude. That's absolutely hilarious. **Matteo Franceschetti** [11:50] But it's world-class. It's like unseen. **Harry Stebbings** [11:52] Going back to the channels, and I'm sorry for focusing on channels. I'm a real nerd about channels. Has your Google spend changed in the wake of, bluntly, AI and AI-driven search impacting so much? **Matteo Franceschetti** [12:05] Yes. And so we introduced a new channel that now we monitor. That is literally what we call AI SEO. And now in the report that I receive weekly, twice a week, there is also AI SEO. And so we see how we rank in AI searches. **Harry Stebbings** [12:24] What percent of traffic today, broad strokes, is from AI searches? **Matteo Franceschetti** [12:29] I don't have a number for that. I can check, but it keeps growing. **Harry Stebbings** [12:33] But is it like 1% or like 20%? **Matteo Franceschetti** [12:36] Probably somewhere in the middle. But then we start seeing an impact on Google. **Harry Stebbings** [12:42] Because it should be. **Matteo Franceschetti** [12:43] Our assumption is that Google is behaving differently because of AI searches. **Harry Stebbings** [12:49] What was your biggest channel mistake? Where did you spend money that you shouldn't have done and you're like, "Ah, I learned a lot of lessons from this"? **Matteo Franceschetti** [12:57] Out of home. And everything depends on the scale of the business in that country. So we tried to do a campaign, an out-of-home campaign in the Middle East, but we were not ready yet. So if we were doing an out-of-home campaign in New York, where we are decently known, it would perform very differently than the same campaign in the Middle East where we just launched a year ago. And so those are the things I'm learning that I didn't know. **Harry Stebbings** [13:27] When are you big enough to do out-of-home? Because I think one thing that we've seen in the last two years, so to speak, is tech companies realizing the importance of brand marketing. Out-of-home, football shirt sponsorships, you name it. And it's supposedly performing well. How big do you have to be to do out-of-home? **Matteo Franceschetti** [13:46] I don't think there is a hard number, but you want to be a brand that is decently well-known. And so I make it up. If 100 people see that ad on the street, I don't know, 5% of them knows the brand. And so that is one of the other things that we monitor. That is this aided and unaided brand awareness to understand how many people know the brand. And if they know the brand, they know what the brand does. **Harry Stebbings** [14:14] How much did you spend on out-of-home? **Matteo Franceschetti** [14:17] Nothing. No. But we created a truck now that goes around Silicon Valley. And so you can book the truck and it comes to your home and you can try the product live. So this truck has a bedroom built in the back of the truck. But now the truck also goes to specific events or to specific areas during the weekend where there are many people. And we are seeing pretty good success because there are a lot of people that wanted to try our product, but they couldn't. And now when they see the truck, they just get into the truck and try the product and buy it. **Harry Stebbings** [14:51] That's a phenomenal channel. And you're going to have like high conversion rate on that. **Matteo Franceschetti** [14:56] Yeah. It's doing pretty well. **Harry Stebbings** [14:58] That's fascinating. I'm also really impressed that TikTok works for you, because TikTok is freaking hard. **Matteo Franceschetti** [15:04] Yeah. It was not working in the past. Then we kept iterating, and it just started working six months ago. ### AI-run marketing **Harry Stebbings** [15:13] How big is the marketing budget today? **Matteo Franceschetti** [15:16] In the hundreds of millions. **Harry Stebbings** [15:18] In the hundreds of millions. **Matteo Franceschetti** [15:19] Yeah. But the story I can tell you is, for example, before we had an email marketing team. Now we have zero. Everything is done through AI. And email marketing makes a very large amount for us. And everything is run by AI. **Harry Stebbings** [15:37] How? **Matteo Franceschetti** [15:38] So what happened is we were forced to that, meaning the person leading, we had a team of two. Then the person leading the team was leaving. And at that point, my co-founder, Alexandra Jumpin, said, "Okay, let me see how I can use AI to really make this work." And within three days, she was able to build multiple bots that now run all our email marketing. And so now we have a team of zero, and email marketing makes close to 100 million. **Harry Stebbings** [16:12] I just want to understand, because we have an email newsletter, and there's people that do it, and it's still pretty average, I think. When you say bots, what do you build your own? **Matteo Franceschetti** [16:23] So for us, obviously, there is a calendar of what emails need to be built and created and sent. This is based also on history. So we have historical data. And our AI suggests, "Okay, I want to send what email with GrokBots." **Harry Stebbings** [16:38] And when you say your AI, it's like your models? It's using GrokBot? It's using? **Matteo Franceschetti** [16:42] Yeah. We probably, I mean, we should check, but I would imagine we are using Claude for that. And then internally, we have probably by now hundreds, if not thousands, of agents that we use internally at Eight Sleep. So now I started measuring what I call the human employees, but then there is also the AI employees. And probably the AI employees are, I mean, without probably, we are probably three, four X bigger if you start including all our AI employees. **Harry Stebbings** [17:14] Where is it most significantly impacting the company? **Matteo Franceschetti** [17:18] Growth. Because email is like that. Now also all our digital marketing, our team received a report every morning from our AI agents suggesting what changes to do or not to do, and they approve or reject. And so also all our marketing business is run, our growth is run by a few peopleright now. **Harry Stebbings** [17:40] I worry that in a world of infinite content supply, discovery becomes impossible and we just get flooded. Do you worry about that too? **Matteo Franceschetti** [17:49] Definitely. But at the same time, I think that the personal agents will look for the best product. And so if you are the best product, you will still win. So yeah, there will be probably, for humans,right, the amount of content will be too much. And so we'll need to think about how we show up to humans where humans go. That is how I think. But then you need a different strategy for the agents to make sure that their agents find you and recommend you. ### Engineering with AI **Harry Stebbings** [18:18] We said there about kind of the amount of agents that you have. Engineering is one where consistently across the board, everyone's engineering teams are being changed unbelievably. How is AI changing your engineering team at Eight Sleep? What are you using? What are you not using? How do you think about that? **Matteo Franceschetti** [18:35] Yeah. Well, our engineers stopped coding around a year ago. So since then, they didn't code. What they have is hundreds of AI engineers that they code for them. And that is how we can achieve what we are achieving at scale in 35 countries, including China, including the Middle East, including Europe, where there are a lot of regulations in all of them. It was a fairly tiny team. **Harry Stebbings** [19:00] What tooling do you use? **Matteo Franceschetti** [19:02] Mainly Claude. **Harry Stebbings** [19:03] Mainly Claude. **Matteo Franceschetti** [19:04] Yeah. **Harry Stebbings** [19:04] How much do you spend on Claude a month, give or take? **Matteo Franceschetti** [19:08] I don't know. It keeps growing so fast that I don't know. **Harry Stebbings** [19:12] Is it like 5 million? **Matteo Franceschetti** [19:13] No, it's lower than that, but it's still in the millions. **Harry Stebbings** [19:18] And the thing I'm trying to understand is Mark Benioff said that they spend 300 million a year on Claude, and they have a $6 billion budget for engineering. It's 5% of engineering salaries being spent on Claude in particular. And my question as an investor is, will it stay at 5%? In which case, we can justify the $2 trillion IPO, but it doesn't have massive expansion from there. Is it a case of the 5% is just the start, baby? We're going to go to 25%, in which case, Matteo, let's load up on Anthropic's IPO. Or is it the case that actually we're going to see the commoditization by open models? Most of workflows are going to get taken by them, and that 5% could go down to 1% as we see efficiency. **Matteo Franceschetti** [20:00] Yeah. I think there will be two vectors in the opposite direction. The usage will increase, and so the 5% will become 50%, but the cost will go down. And so net-net, I think it will go down. I was listening to an interview with Sam Altman recently, and he was saying that in the early days, to pay for one hour of electricity a night, you had to work five hours, just to give you a sense of how expensive electricity was in the early days. And now nobody cares about, I don't even know what's the cost of electricity at night in Miami, where I live. And so I think the same thing will happen. **Harry Stebbings** [20:35] Do you find it a bit scary that intelligence is now free and entirely distributed? **Matteo Franceschetti** [20:40] Yeah. It's something I chose aside. I think about all that,right, and how businesses will change, how our business will change once that intelligence is semi-unlimited. **Harry Stebbings** [20:52] I asked Instinct this morning to do an in-depth analysis of three of our biggest competitors' Instagram channels, because I want Instagram to be a real driver for us moving forwards. What works, what doesn't, what themes work, what hooks work, what layouts work, what doesn't, what captions work. It was incredible. And I said, can you suggest three stories every single day for me at 8:00 AM to do? First one starts tomorrow. **Matteo Franceschetti** [21:14] Yeah. I mean, the amount of productivity will explode. It's probably like when we went from no computers to computers, or probably even bigger, industrial revolution or agricultural revolution. We are facing one of those moments. **Harry Stebbings** [21:28] Knowing what you know now as a consumer and customer of Claude, would you buy Anthropic at the IPO? **Matteo Franceschetti** [21:34] I would probably buy. I still think there is so much upside in all these companies. I'm really bullish on SpaceX, personally. **Harry Stebbings** [21:45] Why? What drives that? ### Holding companies **Matteo Franceschetti** [21:47] Well, I think, so here is another theory that I have, and obviously, it's just my opinion, but I think with AI, companies will, theright companies will transform themselves in holdings. And so what it means is that whatever Eight Sleep is doing today will be one of the businesses that we do. But with AI, as we build tools for ourselves, we'll discover other opportunities, business opportunities. And so the Eight Sleep Inc. will probably own three, four, five, 10 different businesses, which if you think, and if you look at Chinese companies, it's something they have been doing forever. If you look at Xiaomi, Xiaomi does 15 different things. I just watched their latest presentation from their CMO. I look at a lot of Chinese companies because they're geniuses,right? They never stop themselves. So Xiaomi, instead of being just like Apple, they also do cars, for example,right? They do so many other things. **Harry Stebbings** [22:43] And fridges and islands. **Matteo Franceschetti** [22:45] Literally. Anything hardware-related, anything that is smart home, but then they also get into components, like some of the components, like BYD develops certain components well outside the car and automotive. So these companies have already proven that the concept of focus is not, oh, you keep doing the same thing forever. It's just, I have certain capabilities, then how can I use this knowledge and capabilities in any form? And with AI, we will all do that. **Harry Stebbings** [23:16] I'm loving this conversation. And the joys of doing second choices is they're much more casual, which is much better to listen to and also much more fun to do. Do you worry when you see the excellence of these Chinese manufacturers, in specifically the kind of automotive industry, that it's just going to hollow out the European car market? **Matteo Franceschetti** [23:36] Yeah. I think Chinese, they really nailed particularly automotive. And based on my understanding, what happened is around 10 years ago, whenever exactly that was, they understood that they didn't want to compete with European manufacturers on standard engines. And that is when they decided to double down on electrical technology. And since then, they started developing their cars. But I go to China often for work. Now we sell in China, but we also manufacture in China. And when you see the quality of their cars, because in the past, we used to think that some of these products were just cheap and ugly. Well, instead, now they design cars. Xiaomi, if you go to their stores, it looks like an Apple store, but there are cars, there are other devices for the home. These cars, they literally look like a Ferrari aesthetics, or they have these seats that turn, so you can just sit. And then. **Harry Stebbings** [24:37] I've seen the TikToks. They're so cool. **Matteo Franceschetti** [24:39] It's incredible. **Harry Stebbings** [24:40] Screens come down. **Matteo Franceschetti** [24:41] Screens come down. **Harry Stebbings** [24:41] Stars on the ceiling. **Matteo Franceschetti** [24:43] Massage. Everything is voice control. So they're really focused on the customer experience, and it's incredible. And I think a lot of other manufacturers around the world, they don't focus enough on the user experience. **Harry Stebbings** [24:56] Completely get you and agree with that. But as your wonderful accent denotes, you are Italian. **Matteo Franceschetti** [25:01] Yeah. **Harry Stebbings** [25:02] And a huge amount of the European industrial economy is rotating centered around cars. **Matteo Franceschetti** [25:09] Yeah. **Harry Stebbings** [25:10] Do you worry about that? **Matteo Franceschetti** [25:11] Well, I worry even more about another factor. I think all the Chinese manufacturers, they will become robotic companies. I think all these automakers should transform themselves and start building humanoids, because the humanoid will be what cars were in the '60s. ### Humanoids **Matteo Franceschetti** [25:28] If they don't do that, they will not lose only cars. They will lose also the humanoid market, which is trillions of dollars. **Harry Stebbings** [25:35] Are you seeing the advancement with humanoids in China in a way that you really didn't expect? **Matteo Franceschetti** [25:40] Yes. I don't know if you saw the, I don't know what was the formal name, the Olympics of robots. **Harry Stebbings** [25:46] The Humanoid Games, I think. **Matteo Franceschetti** [25:48] Yeah. It's insane. And the way I look at that is, okay, you look at this thing, it looks a bit funny, they look a bit clunky, but they start doing these things. Knowing how fast AI is moving, if next year, those same games will be mind-blowing. That is what worries me. What I saw today,right, if you just look at that, you say, oh, look at this thing, like these robots, they're not really good at walking. Even if they did the records in the 100 meters, there was a robot that ran faster than Usain Bolt. So they know how to. **Harry Stebbings** [26:24] I did a video on this. There was a robot that beat the high jump. **Matteo Franceschetti** [26:29] Yes, I saw that. And then there were the fighting, the fighters. **Harry Stebbings** [26:34] Tennis. **Matteo Franceschetti** [26:35] Yeah. **Harry Stebbings** [26:35] Like real-time tennis. **Matteo Franceschetti** [26:36] Tennis. The tennis was really cool. **Harry Stebbings** [26:38] It's insane. **Matteo Franceschetti** [26:39] Yeah. But in one year from now, we will be blown away at this speed of AI. **Harry Stebbings** [26:45] Did you see the paper last night, or essay or post last night from someone at OpenAI, Sam promoted it, that basically said, we actually need to put a slight pause on this. It is getting too far, too fast. **Matteo Franceschetti** [26:57] Yeah. So there is the, I think the part that is worrying everybody is the part of self-learning from these models. And so they are getting to the point where they train themselves. And that is when we start losing control. There is a point, even in our model. **Harry Stebbings** [27:15] Do you not think we're already there? **Matteo Franceschetti** [27:16] I think we are. Then I think there is a big delta between what we see as users and probably what the frontier model companies have in-house. And I think they have already seen it behind the scene. You have seen some of the things that are happening already in terms of cybersecurity in these civilizations, that there were three attempts of civilization, I think, in an OpenAI model where agents were building their own group. **Harry Stebbings** [27:51] I'm going to go there. You sell in China. You spend a lot of time in China. A lot of your investors, including Keith Raboi, who's a friend of mine, fucking hates China. How do you reflect on that? Is it as evil and CCP-driven as it seems? Are we in a deglobalized world that should hate China? How do you think about that? **Matteo Franceschetti** [28:15] Yeah. I don't have a specific opinion on that, so I cannot really comment. I can just tell you, for us, it's a key market, it's a big opportunity, and we decided to sell there, and it's doing really well for us. ### Selling in China **Harry Stebbings** [28:32] Is it very different selling in China? **Matteo Franceschetti** [28:34] Yes, because you cannot sell on eightsleep.com. Like literally, you don't sell on a website. They don't use websites. And so for us, it was literally learning everything from scratch. **Harry Stebbings** [28:44] What do you mean they don't sell on a website? **Matteo Franceschetti** [28:47] Chinese don't buy on websites. There is no e-commerce as we know it. They only buy on their super apps. So on WeChat, RedNote, and equivalent. And so we had to learn all that. **Harry Stebbings** [28:59] Where do they land? You send a referral link to your friend? Where's the referral link from? I'm confused. **Matteo Franceschetti** [29:06] Yeah. Imagine that everything, the equivalent, it's oversimplified, it's like if you were buying everything on WhatsApp. They don't go on it, on any website. Websites are at the most just literally like if you just want to scroll and see some picture and read a bit more about the product. But all the purchases, all their credit cards are on RedNote or kind of Amazon equivalent and WhatsApp equivalent. Or TikTok, obviously. **Harry Stebbings** [29:34] Does that impact how you think about how we should think about security for these AI assistants? Everyone now is like, oh, I would never put my credit card in Instinct. Oh, what if it gets hacked? **Matteo Franceschetti** [29:44] Yeah. I think the solution for that to me is, so for example, my Grokbot is buying things for me already, but is using Amazon on the browser. And so Amazon has my credit card. And so there I feel confident because I'm not sharing my credit card with AI yet. I think in AI, where we were with credit cards on spending and buying things on the internet 20 years ago, where people, particularly European and Italian, I was still living in Italy, they literally didn't want to put their credit card on any website because they thought it was a scam. And sometimes there was a scam back then. I think we are at the same point with giving our credit card or information to these bots. It's still a bit, sometimes you feel uncomfortable. But I think in a year or two from now, our bots, particularly bots from frontier models, like from X, OpenAI, and Claude, you will start trusting them soon. **Harry Stebbings** [30:45] What seems crazy today that you think will be very common in five years? I totally remember I wasn't allowed eBay when I was young because my parents were like, no way are you putting credit card details online. I remember when it was like, you think you're going to find a partner online? These apps are ridiculous. Now, 60% of relationships start online, and I think we live online transaction-wise. **Matteo Franceschetti** [31:10] Probably your bot buying a cyber cab that will start making money for you. So you will buy a cyber cab that makes money for you with the bot, and the bot runs the cyber cab. That would be pretty sick. **Harry Stebbings** [31:25] I mean, it's not that far off happening now. **Matteo Franceschetti** [31:27] No. And then there will be the health part. That is another area where I think, I hope that cancer can be solved within 10 years. I think companies like Eight Sleep will be able to save your life, save the life of millions of people. **Harry Stebbings** [31:44] Does the Eight Sleep product actually change that much, with the greatest of respects, in a completely AI-driven world? **Matteo Franceschetti** [31:49] 100%. We start seeing the likelihood you develop diabetes in our data, hypertension. We are becoming a medical device for sleep apnea. So your bed will become the most advanced medical platform you ever had. **Harry Stebbings** [32:05] You said about retail earlier. I bet retail has been a question for you for years, and I bet there's been different ball conversations had. How do you think about when's theright time? Because you're still not, still D2C. How do you think about when's theright time? **Matteo Franceschetti** [32:20] Yeah. Well, let me step back for a second. One thing I'm learning as an entrepreneur is there is a time for things,right? Similar to what I was telling you about the Out of Home campaign. Nailing the timing of what you do, so when you do what, is actually really important for CEOs. Because it's not that it's binary that, I don't know, retail doesn't work or Out of Home doesn't work. No, it works, but there are some second or lower-level conditions that are required to make that project work. And so I think for Eight Sleep, that is happening now. And so you should imagine retail to become a meaningful part of our channels in the next month, years. But before, it will have been too early. Same for China,right? Launching in China, one thing I spoke to a lot of Chinese founders, and what they told me is sometimes when they start their consumer products, they actually start selling outside China first. And I say, why? You have such a big market, and you know the market. And they say, because the Chinese market, they love to buy products that are already well recognized in the Western world. And so you want to build the product and the brand first in the rest of the world, and then you come back to China. Otherwise, in China, you would be one of many knockoffs, and it would just be a price war. And so I didn't know, we just decided to launch China, and so we were just doing it. But I didn't understand that for us, it was theright time to get into China because now we're already selling in 35 countries. We are well recognized. We sponsor Charles Leclerc and now work with Ferrari through Charles. That is a very well-recognized brand. Many athletes use us. Elon spoke about us. Mark Zuckerberg spoke about us. Elon is really big in China,right? And so you have a level of trust where you command a certain price. But if we were doing the same thing five years ago, we would be destroyed by a knockoff that is 500 bucks cheaper. **Harry Stebbings** [34:24] I was at Hugo Barra on the show, who was a former exec from Xiaomi, and he taught me something very important in Harbor. And I'm intrigued if you agree with it. He said, you need to be one of two things. You either need to be price king, which is I'm the cheapest, or feature king, which is I'm the best. Do you agree with that? **Matteo Franceschetti** [34:43] So I agree and disagree. I agree that you can be the best price, is now what we want to be, or I would call it the best product and brand. Now, there's so much about features, but the brand is really important. And so being a brand that is associated with, again, the Charles Leclerc, with Elon Musk, people they really respect, they want that. And the same happens in Europe,right? I grew up, and I remember when I bought my iPod, it was impossible. And I was buying a second-hand iPod on eBay back then because Americans were having this product, and it was not being sold in Europe yet. There is that kind of FOMO. **Harry Stebbings** [35:26] I completely agree. Listen, a thousand songs in your pocket in a beautiful poster. Dude, Samsung and all the others did a thousand songs in your funky device too. It was the same in many ways. **Matteo Franceschetti** [35:38] 100% the same. And Steve Jobs has always been a genius because he was coming with a great product after everybody else, sometimes one, two, three years later. But he was nailing the branding, the packaging, and the pitch, and everybody, and obviously the look, and everybody wanted it. **Harry Stebbings** [35:55] What do you think people don't consider about consumer brand enough? ### Brand & Leclerc **Matteo Franceschetti** [35:59] The brand, particularly, I think in Silicon Valley. I think in Silicon Valley, we understand really well building the best product, but I think we underestimate the importance of brand. Then a great brand with a shitty product goes nowhere. So first is product, but then you need to be able to build a brand that is aspirational and can command a certain price. **Harry Stebbings** [36:21] Charles Leclerc is a phenomenal talent, for those that don't know, in the racing world, one of the best. How does that come to be? You get a DM from Charles saying, I love Eight Sleep, do you want to sponsor me? How does that come to be? **Matteo Franceschetti** [36:34] Yeah. Well, it's pretty incredible, the story. So we got connected. So Charles already had our product for two years before we met, and we didn't even know. And that is the best way, obviously, for us to start the relationship. Then I'm an F1 and motorsport obsessed fan, like obsessed. I know everything since when kids racing go-karts. So I knew about Charles six, seven years before he got into F1. And three years before F1, he was racing, two years before, he was racing in F2. And at the time, I reach out to his team in F2, and I say, I'm a huge Charles fan. I think he will make it big. Is there any way where Eight Sleep can sponsor him? But at the time, Eight Sleep was very tiny, and so we couldn't find any real deal. But when I met Charles, I still had the email where I was going back and forth with his team, and I wanted to sponsor him before he even made it to F1, not to Ferrari, before F1. And then I share with him our vision, our medical vision. He really cares about that. And he's actually really into AI. He's incredible. Super sharp guy, super into AI. And we had dinner together. I think it was the Wednesday of the GP in Miami. And before the end of the dinner, we say, we are going to do, we are going to work together. And the deal since then was done in a matter of days. **Harry Stebbings** [38:01] Can I ask how much it cost? **Matteo Franceschetti** [38:04] No, I can't share. What I can tell you is that Charles invested in Eight Sleep. And I was honestly, first, really happy because he was one of my heroes. But second, I think that proves what I was telling you, how smart he is, also as an entrepreneur and a businessman. **Harry Stebbings** [38:27] Can I ask you, I think a lot more celebrities and athletes are obviously trying to be investors and wanting to invest today than ever before. What would be your biggest advice to other founders on how to get them and how to get the most out of them as a founder of a company? **Matteo Franceschetti** [38:45] Well, we made a lot of mistakes with that too. Now it's probably four or five years that we invest in sport because obviously we have Charles, but we were sponsoring the UAE team with Pogacar. Pogacar was installing our product every single night at each hotel of each stage of the Tour de France, since last year. We didn't even know. He won last year, and then he won this year. So they reach out after the first year and say, look, Pogacar did everything on his own. We bought the product. Now everybody in the team wants it. Can we do something together? And so we sponsor the UAE team this year. And then we are in padel with Arturo Coello and Federico Chingotto, so number one and number three in the world. We are in tennis, where we sponsor a lot of coaches, including the coach of Sabalenka and many others. And then there are a lot of top, top athletes that use our product. It's not public. **Harry Stebbings** [39:40] 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? **Matteo Franceschetti** [39:50] Well, there are 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 want to hear the feedback. They need to know the 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,right? And so they really need to be bought in. If they just have a stake in our company because they put a few million dollars, you don't go anywhere. **Harry Stebbings** [40:51] Who would you most like to have on the cap table who you don't have? **Matteo Franceschetti** [40:55] Probably. **Harry Stebbings** [40:57] Do you have Cristiano Ronaldo? **Matteo Franceschetti** [40:59] No. **Harry Stebbings** [41:00] He would be amazing. **Matteo Franceschetti** [41:01] Yeah. **Harry Stebbings** [41:01] Wouldn't he? **Matteo Franceschetti** [41:02] Yeah. **Harry Stebbings** [41:03] Have you seen pictures of him training? **Matteo Franceschetti** [41:05] Yeah. **Harry Stebbings** [41:06] Dude, I'm a straight man. My God, this guy's body is incredible. I looked at it, and then I looked at myself, and it just felt like, oh, damn. **Matteo Franceschetti** [41:16] I think for us, there is a big difference between the athletes that we can disclose,right, 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. **Harry Stebbings** [41:43] Do you have any wild stories of delivering it somewhere crazy for someone last minute because they need it? **Matteo Franceschetti** [41:49] Yeah. **Harry Stebbings** [41:50] You don't need to say the person. **Matteo Franceschetti** [41:51] 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 home? So the team goes. But once they get there, he has this very unique, special size 300K 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, no. OK, would you mind installing this in my kid's room? And 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 going to give away my 300K mattress, but I'm going to move Eight Sleep in my bedroom. I need it for my own performance. And so he threw away the 300K mattress, and now he sleeps on Eight Sleep. That was pretty 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 billion plus companies,right? And so he starts shaking hands, and he spends literally three seconds with everybody. Hi, like 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. **Harry Stebbings** [43:48] What is the most amount of Eight Sleeps one person has bought? **Matteo Franceschetti** [43:53] 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. **Harry Stebbings** [44:09] Someone bought 55 for their houses? **Matteo Franceschetti** [44:12] Yeah. **Harry Stebbings** [44:13] What? **Matteo Franceschetti** [44:13] Yeah. **Harry Stebbings** [44:14] Do you get a discount? **Matteo Franceschetti** [44:16] No, these people don't ask for a discount. They just reach out and their team, and they just ask to help for the setup or not to place such an order. **Harry Stebbings** [44:27] That is wild. **Matteo Franceschetti** [44:29] Yeah. **Harry Stebbings** [44:29] I love that. OK, great. Earlier, you said. **Matteo Franceschetti** [44:34] Well, there is another story. There is Kappel, and they reach out because wherever they go, if they stay in an hotel for, I believe, longer than three or four nights, they buy an Eight Sleep to install in that hotel. **Harry Stebbings** [44:51] Wow. **Matteo Franceschetti** [44:51] Yeah, because they can't sleep without that, and obviously, they're. **Harry Stebbings** [44:55] Do you mind that Eight Sleep is such a premium product? Would you like it to be more for everyone? **Matteo Franceschetti** [45:00] 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 3. **Harry Stebbings** [45:16] 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 share the concerns? **Matteo Franceschetti** [45:29] I do. The way I think is, OK, 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 is our job as a group of 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. **Harry Stebbings** [45:53] You said earlier about your co-founder, Alexandra. I hope it's OK. She's also your wife. ### Married co-founders **Matteo Franceschetti** [45:58] Yeah. **Harry Stebbings** [45:59] How does that work most efficiently? What lessons do you have? What works? What doesn't work? **Matteo Franceschetti** [46:07] Yeah. So 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. And so I might be screaming on Slack. We have to get this done by the end of the day, and let's review this at 9:00 PM. And then on WhatsApp, it might be, oh, what do we have for dinner? I'm craving pizza. I don't eat carbs. We cheat on Friday. Friday night is when we have pizza, but as a joke. So that is one. Second is I could talk about work all the time, like literally 24/7. I love that, and it helps me. For her instead, like a certain point, she really wants to operate like if she was an executive that you wouldn't bother after a certain time in the night, like at 10:00, 10:00 PM. OK, if it'surgent, you can talk about that. But otherwise, if we are on the couch watching TV, don't just keep talking about work because my brain needs to digest the information from the day, and that is how she performs. But then what I can do, I can Slack her. So sometimes we are on the couch watching TV, I start coming up with ideas, and I start Slacking her, and her phone might be vibrating next to me, and I know that it's me, and it's completely fine. And we don't talk about that, even if I'm there writing a couple of messages. **Harry Stebbings** [47:27] And that doesn't irritate you? **Matteo Franceschetti** [47:28] No, because I think the way she frame it was extremely smart. And she says, if I was an executive that was not sitting next to you, would you call them for this thing at 10:00, 15:00 PM? Say, no. And she says, so just treat me how you would treat our VP of Ops, who is in New York. **Harry Stebbings** [47:46] Would you know? I will call people at 10:00 or 11:00 PM. **Matteo Franceschetti** [47:50] Well, it depends on if it'surgent, or is a random idea, or is something that we need to remember. If it'surgent, I call you at midnight, 2:00 AM, 3:00 AM. Trust me, I'm going to come to your door at 5:00 AM. I'm that type of guy. But if I just have an idea that maybe for the next launch of the next product in the video, we should talk about this, I can just send you a note. **Harry Stebbings** [48:12] When was the most challenging time for the scaling of your relationship in the company? Because there's always break points. **Matteo Franceschetti** [48:20] In the early days, I think. Now, probably the last, probably, I don't know, four or five years, I think we are really fine-tuned, even because I'm extremely demanding. I'm a bit binary on the thing. I'm a weirdo, and so I can be a husband on one side, but business-wise, no mercy. We have to do what we have to do, and I can be the CEO if I deserve to be the CEO, and she can do her job if she deserves to deserve that job. **Harry Stebbings** [48:54] Where were you not demanding enough where you should have been more demanding? **Matteo Franceschetti** [48:59] No, impossible. If anything, I do the opposite. I'm way more demanding than what I would do. What I probably had to learn on my side in the early days, when you're so close to a person, you might act or behave in a way where you still pretend the same things, but you're not as professional as you would be with another executive. That is, no. **Harry Stebbings** [49:25] Online. **Matteo Franceschetti** [49:25] Yeah. And so that was one of her points where she pushed me in the early days and said, I have no problem in you being extremely demanding and pretending this by this time of the day, but the way, the words that you use and how you say it, it cannot be just like I'm your buddy. You need to treat me professionally like an executive. And that is where I had to step up. **Harry Stebbings** [49:46] I get in trouble for treating mine like an executive. She's like, I'm not an executive. Don't treat me like one. **Matteo Franceschetti** [49:55] No, for us, it's that to the point where I think Delian and Keith, when they invested for the first year, 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. But because of the interaction in the board meetings, they didn't even realize that. You could ask Delian. My brain works like that. I'm very binary on these things. When I'm working, I'm working. **Harry Stebbings** [50:23] You know, I had this brilliant statement the other day, and it's vulnerability is sharing something that you're scared to admit in spite of the consequences, in spite of them. What do you think you're kind of scared to admit in spite of the consequences today? **Matteo Franceschetti** [50:39] Well, I think for me, a lot of things were also I moved to the US, coming from Italy. I graduated from in law. I didn't know anything about Silicon Valley. I didn't go to Stanford. I didn't go to Harvard. We are three immigrants founding Eight Sleep. So in the early days, it was very challenging,right, because I didn't know anything about that world. I didn't know anything about how the US was working. So thinking of creating a product that consumers would buy and they would also like and love to scale, I had a lot of question marks if I could really do that. And I think it was also in the early days this fear of, can I really scale the thing? OK, you can build a product, and hundreds of your friends might buy it because they are just nice to you. And maybe you sell 1,000 because it's a crowdfunding campaign. But can you really build a true business that really people buy the product because they want that product? **Harry Stebbings** [51:45] I love it, but what are you scared of today? **Matteo Franceschetti** [51:48] Today? **Harry Stebbings** [51:49] Yeah. **Matteo Franceschetti** [51:49] Do you know the story of when I had to move to China in the early days for manufacturing, or I didn't tell you? **Harry Stebbings** [51:55] No, I didn't tell me. **Matteo Franceschetti** [51:56] So it was after the YC demo day,right? We just raised $5, $6 million, whatever. But manufacturing was not happening. So we had all these beautiful prototypes. None of us had any experience about manufacturing. So we thought, oh, you have a prototype. Now you build it at scale, and we are done. But things were not happening. And so I go to Alex, and I say, I have to go to China. And she says, why? And I say, because manufacturing is not happening. And she says, when do you go? I'm going to go tomorrow. And she says, when do you come back? And I say, once I fix manufacturing. I came back three, four months later. And now, still today, the longest tenured employee in the company is a Chinese person that I hired during those months while I was living in China. **Harry Stebbings** [52:42] And she just put up with that three to four months away? **Matteo Franceschetti** [52:47] Yeah. **Harry Stebbings** [52:48] How did you do that? How did you make that work as a couple? **Matteo Franceschetti** [52:52] Well, when the relationship started, we were already she was living in Mexico, and I was living in Italy for our first year. But that was by then probably five, six years before. I don't know. It's just for us, if the business requires that, you do what you have to do. **Harry Stebbings** [53:08] But one thing that I'd be nervous of/scared of if I was you is the ways in which you work may not be transferable to having a child. Going to China for three to four months, you can do it. You're a lovely human, and I really appreciate our friendship. I don't think that's the type of dad you want to be. **Matteo Franceschetti** [53:28] So I'm lucky that we have some really good investors. So I always make them questions. I always try to learn from these people. I don't know. I think we would figure it out. I think we would brainstorm. That is how it works at our house,right? We would brainstorm, and if I have to come back for a weekend and go back, I would I do whatever it takes. I go hardcore, like whatever it takes. And then I try to do it in a smart way for whatever is possible. **Harry Stebbings** [54:04] We said before about the travels. You can travel anywhere to any hotel. What is the favorite hotel in the best place, and why? **Matteo Franceschetti** [54:15] For work or outside work? **Harry Stebbings** [54:16] You've got a plane ticket to go. You can go anywhere. **Matteo Franceschetti** [54:19] Well, I love Maldives. **Harry Stebbings** [54:21] OK, where do you stay? **Matteo Franceschetti** [54:24] That's private. **Harry Stebbings** [54:25] OK, do you not find it boring? **Matteo Franceschetti** [54:28] So here we have another problem, which we call Alexandra and I, we call it the scene. And we say we have the scene. And so I never took a vacation since when Eight 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. And I'm not saying this because, oh, it's cool, it's the hero, whatever,right? Everybody should do what they like to do. I'm just telling you how we are and how I am. And so I get bored in any place for longer than we calculate that. Longer than two nights in a place, I start feeling like I'm bored. Let's move to the next big thing. **Harry Stebbings** [55:14] So what did you do in the Maldives? **Matteo Franceschetti** [55:16] I was literally there for a weekend because I had to be in the Middle East for work. So we just. **Harry Stebbings** [55:20] So you'll do a weekend in the Maldives? **Matteo Franceschetti** [55:22] Yeah, because we had to go to the Middle East for work and the Friday night. But then what happened, actually, is that the guy who was leading hardware, he calls me that Friday night at 2:00 AM, and he's saying he's leaving. And so I spent the whole weekend trying to save him because we wanted to save him. And I saved him, but I spent not the whole time. I had dinner, and I went snorkeling once during the weekend. But the dealing was the guy, but then we retained him. **Harry Stebbings** [55:54] How did you save him? **Matteo Franceschetti** [55:55] Because of our culture. The company was paying him way more, giving him RSUs, so liquid stocks, plus paying him probably 3x more. But he loved so much what we do, how we work, and what we want to build that at the end decided to stay. But he literally decided five minutes before going in the conference room to tell his team. So it was out, out, out, out, out, out. And then comes to me five minutes. I was in San Francisco. He's based in San Francisco. Five minutes before going into the conference room to tell his team he's leaving, he says, I thought about that. Can you do this for me in terms of offer? And we say, yeah, I'll do it. And then he stayed. ### Talent battles **Harry Stebbings** [56:41] Can you advise me? I'm a founder of an early-ish stage company today. My talent is getting poached by hot companies, top labs. Should I pay the same as what they're paying to keep them if they're great, or do you just have to accept that it's out of our league? **Matteo Franceschetti** [56:58] Well, I'll tell you something slightly different. I think you cannot even compare, meaning if the people are really comparing the options between a company at a total different scale to you, they're probably the wrong people. Or it's not that they are wrong fundamentally. In our case is this person was tired of there is pressure at Eight Sleep, and he does hardware. So he needs to go to China, Vietnam, travel all the time. And so it was becoming a personal choice. But he's a hardcore guy, and at the end of the day, he realized that this is what gives him energy. And so he didn't even want that life. And so when people sometimes it's still happening today that sometimes people say, oh, I'm at the final stage with Anthropic and Eight 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 two jobs are any way similar. And I'm not talking because we are hardware versus software. It's just, man, get your shit together. Do you want to work at a very large company that has no certain standards and probably a certain profile? You want to work at Eight Sleep. But here I tell you another thing that we are seeing, actually. You will love this. There is another trend in Silicon Valley where there are people that have been laid off. Obviously, I don't want to generalize, but we have seen this in the data. And so what they do is they start talking to a lot of companies. And sometimes some of these, at least with us, they took one of our job offers, and then two weeks later, they switched to another company. And the reason is because they didn't have probably income or a salary for a few months, they want to try to get a salary or income. And then they keep certain conversations open, and then they take they might take another job. **Harry Stebbings** [58:58] Is that not a terrible switching so quickly? **Matteo Franceschetti** [59:01] Yeah, but then they don't even disclose it. **Harry Stebbings** [59:03] Ah, so they don't change that LinkedIn to like. **Matteo Franceschetti** [59:06] Yeah. **Harry Stebbings** [59:08] Do you think the valley is too money-oriented? Chamath said on X recently that it's become too transactional. It's too financial. From Chamath, that really is something. Do you agree with that? **Matteo Franceschetti** [59:20] So yes, but with the caveat. I think people that join a startup, they should be driven, and it's important that they are motivated by potential financial success. And I agree. But that success will come by increasing the equity value from X to 10x. That is also why to me it's so important. You cannot really compare us to one of these big companies that are already so big. They are way more stable, and maybe you do 2, 3x. At Eight Sleep, you should come to try to do 100 or 1,000x. But the team size, there are so many details that are totally different. And so we actually want people that are very driven and ambitious, but they need to be driven and ambitious because of theright things. **Harry Stebbings** [1:00:07] Do you think people can say more about upside in terms of 10, 100x, or actually just certainty of cash? Yes, it may be more capped, but you will get a tender next year, and that will be done as they are every year. **Matteo Franceschetti** [1:00:22] I think it's completely fine. But that goes back to get your shit together and understand what you need and probably what your family needs. So another thing that I learned as a CEO is sometimes now we just promoted one of our best guys to VP of Engineering. And we were running a search for VP of Engineering, but he wanted the job. And what I told him is, look, we will run the search, but you have your own shot, so prove yourself. He did insanely well for three months. And then we decided to go for him. But I think it was very good that we ran an external search so we could see other people as well,right? I found that the professional way to do it. But what I told him is, I'm going to give you the job, but I don't want you to answer tonight. You go and you talk to your wife because she has seen how hard you work over the past three months. You were already working hard. The last three months, you went like 130%. 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. She has seen how hard you work. And you guys, both of you, need to commit because it's not just you. It's your family. **Harry Stebbings** [1:01:37] I completely agree. I call it the power of pillow talk, which is why I will always spend time at a dinner party or a drinks party at speaking to their partner because I want them to actually know at the end of the day why I'm doing what I'm doing and how important my family is to me and what we build is together. And so when they come home and have a shit day, it's like, but I do like Matteo, and I know he's a good human. **Matteo Franceschetti** [1:01:58] Yeah, exactly. **Harry Stebbings** [1:01:59] Changes everything. **Matteo Franceschetti** [1:02:01] It's key. And everybody has a family,right? So we need to take care of them, but they also need to be bought in. **Harry Stebbings** [1:02:07] Can I ask you, when we look at the team today, how big is the team? **Matteo Franceschetti** [1:02:10] We're only 160 people. **Harry Stebbings** [1:02:12] Wow, that's small. **Matteo Franceschetti** [1:02:15] Our revenue per employee is way higher than Apple. One thing I can tell you is companies without disclosing our revenue, but other similar companies are probably in the 1,000 people at our revenue stage. Our output is 5x, but it's average in Silicon Valley. **Harry Stebbings** [1:02:33] Can I ask you, when we look then three years out, it's a reasonable time frame. It's not crazy out, but it's decent. How many people will you be then? **Matteo Franceschetti** [1:02:41] 250 people making a billion. **Harry Stebbings** [1:02:43] Which function does not exist today that would be very important or job? **Matteo Franceschetti** [1:02:49] Well, we saw a change in email. But what I think is I start thinking of in terms of teams of two. That is how I think for certain parts of the business where I think you still want two people to have redundancy, and you want two work-class people overseeing that area. But that area could be really big,right? Soright now, our paid media team makes hundreds of millions, and there are two people. But like 200, 300 million, just the group. **Harry Stebbings** [1:03:20] And they decide all of your matter allocations, all of your creatives? **Matteo Franceschetti** [1:03:26] Well, then obviously, there is a creative team. **Harry Stebbings** [1:03:28] Sure, sure, but they decide. **Matteo Franceschetti** [1:03:29] Yeah. So the way I like to keep the organization is extremely small and flat, and I'm heavily involved. And that is how we can be 160 people instead than 1,000. And similar companies are in the thousands. **Harry Stebbings** [1:03:40] So which function today or which job today will be gone in five years' time, and which will be created? **Matteo Franceschetti** [1:03:49] Again, I don't think anything will be gone. I think you can do what you're doing with way less people, or the same people be spread more horizontally to cover more areas,right? And so maybe it's AI, SEO, maybe the same person oversees this other section and this other section. So you can be way leaner. Now I have an AI internal tools team that didn't exist until six months ago and are the guys building these thousands of agents for internal. **Harry Stebbings** [1:04:18] And you have a separate team for that. You don't expect horizontal groups to do that. **Matteo Franceschetti** [1:04:24] No, because this team needs to be very connected to the data engineering team because the agents need to have access to the data backend, the data pipeline of everything we do. And so I don't know. The marketing agents need to make sure they have perfect access to the revenue by country and the CAC by country. And so fine-tuning that, that is the real true challenge because you want to make sure that the agents are 100% correct. **Harry Stebbings** [1:04:50] Other than email marketing, what agent has had the most significant impact? **Matteo Franceschetti** [1:04:54] Well, the one for paid media,right? Now we make hundreds of millions with these paid media agents. Now the other big one is in finance. Particularly in all these groups is where we save a lot of headcounts compared to normal companies,right? Probably a company like ours should have, I don't know, a team of 20 people in finance. Our team is four people. I just really like to keep teams small and try to see if I can 5x the output. I really have love when I talk to investors to ask them to compare each of my teams and the quality of the output of each of my teams to other companies they have and the delta in size. **Harry Stebbings** [1:05:37] You're in 35 countries. **Matteo Franceschetti** [1:05:39] Yeah. **Harry Stebbings** [1:05:40] What's the hardest country? **Matteo Franceschetti** [1:05:41] Well, China, because there is no you don't sell on the website. So we had to reinvent everything. ### Quick-fire **Harry Stebbings** [1:05:46] Dude, I want to do a quick-fire round. So I say a short statement, you give me your immediate thoughts. How many hours sleep do we really need today? **Matteo Franceschetti** [1:05:56] At least seven. **Harry Stebbings** [1:05:57] Biggest sleep tip for me? **Matteo Franceschetti** [1:06:00] Consistency and amount of hours. True. If you just nail those two things, you will be good. **Harry Stebbings** [1:06:06] Eating before bed and the advice? **Matteo Franceschetti** [1:06:08] It's very personal. For certain people, it makes a difference. For others, no, and it will change as you age. **Harry Stebbings** [1:06:15] Huh. Does it make a difference for you? **Matteo Franceschetti** [1:06:17] As I age, it does. It depends on what I eat. 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%. **Harry Stebbings** [1:06:29] Wow. What have you changed your mind on most in general in the last year? **Matteo Franceschetti** [1:06:34] Probably in health in general. I think really 95% of the value is just to be consistent and do theright 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 terms of eating well, training, and sleeping, then the score will take care of itself. **Harry Stebbings** [1:06:56] What's a kooky prediction, weird prediction you have about the future that you do stand by? **Matteo Franceschetti** [1:07:03] That kids that are being born now will never work, at least for money. Then they might do it because of their passion. **Harry Stebbings** [1:07:13] Can you just explain that to me? **Matteo Franceschetti** [1:07:15] 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. They will do activities, social activities, even to help other humans. But. **Harry Stebbings** [1:07:31] What will we do then? **Matteo Franceschetti** [1:07:33] That is what we need to discover. I also have this pyramid of life about the importance of life. And to me, it's a pyramid. At the bottom, you have health, and then you have relationship, and then you have purpose. And I think this is what drives happiness. So the first thing you need to nail in your life is to be healthy because if you are unhealthy, almost nothing else matters,right? If you have a cancer and you risk to die in the next two, three months, you can't be happy. Once health is on track, you focus on relationship. Relationship doesn't matter what kind of relation. It could be a partner, it could be your family, it could be your friends. But you need to have a relationship of other people,right? If you are extremely rich and healthy but completely alone and nobody wants you, you can't be happy. **Harry Stebbings** [1:08:18] And you're just a Silicon Valley tech founder. **Matteo Franceschetti** [1:08:20] And then the third is purpose. And purpose is extremely important,right? So once you're healthy, once you have great relationship, you need to have a purpose of your life. You need to work towards something. And it doesn't need to be financially related. It could be anything that you really enjoy, but you need to have a purpose. And I think that is the part that we need to pay attention to. **Harry Stebbings** [1:08:41] What would you advise someone asking whether they should go to university today? **Matteo Franceschetti** [1:08:45] No. 100% no. It's useless. Well, if you want to have social activities, there is the social part, but I'm just talking in a very pragmatic way. If they want to have a career, particularly in Silicon Valley or as entrepreneurs, I think it's totally useless. **Harry Stebbings** [1:09:02] Do you believe in universal basic income? **Matteo Franceschetti** [1:09:05] I think it will have to happen. And I think probably as companies will get more efficient, and probably they will need less people working for them. Probably they will get taxed more to make sure that we can distribute universal income to everybody. **Harry Stebbings** [1:09:20] Do you think Bill Gates's suggestion wasright that we should tax agent usage and token usage? **Matteo Franceschetti** [1:09:25] Well, I mean, there we need to talk to real experts. I just think that the bottom line of a lot of companies will improve meaningfully over the next three, four, five, 10 years. And so I just think we will need to readjust part of that bottom line to be distributed to people so everybody can have a comfortable life. **Harry Stebbings** [1:09:44] Would you let your children use social media? **Matteo Franceschetti** [1:09:48] That is a good question. I don't have an answer yet, but at some point, I will have to figure it out. **Harry Stebbings** [1:09:53] What do you not know yet about parenting that you are wanting to know? **Matteo Franceschetti** [1:09:59] Well, I tell you something that I'm actually trying to do that could be slightly different. So with Eight Sleep, we are lucky that we work with a lot of people that have been successful in sport, but it could be ballerinas, it could be chess players, or it could be even great businessmen. I'm trying to talk to all their dads. And I want to learn from their dads what they did, what they thought worked and didn't work, and how they raised their kids to then learn how I can be a dad one day. **Harry Stebbings** [1:10:33] What did you learn? **Matteo Franceschetti** [1:10:35] Oh, I'm starting now to do my due diligence and interviews. **Harry Stebbings** [1:10:38] God, that would be a fascinating exercise. **Matteo Franceschetti** [1:10:39] It's amazing,right? Because nobody thinks about the and it doesn't need to be the dad. It could be the mom. I just want to learn what do they think they didright or wrong for their kids to be successful. And to me, successful could be even a doctor,right? I'm not talking about athletes or sports. But I want to learn from people that just went through that, and I'm sure they made mistakes. **Harry Stebbings** [1:10:59] You know what my mother did? She dropped an image of perfection or morality or goodness that most parents have. You know you kind of view your parents as good and always well-behaved and genuine. She will talk to me in-depth about all of her fuck-ups and the lessons that she learned, things that you really wouldn't talk to your child about. But in the depths of mistakes, you have lessons. And how do I learn from her fuck-ups? Do you know what I mean? **Matteo Franceschetti** [1:11:29] Yeah. **Harry Stebbings** [1:11:30] But most would be like, no, that was a dark episode of my life that I'm not going back to. **Matteo Franceschetti** [1:11:33] Yeah. **Harry Stebbings** [1:11:35] That I really appreciate in her. **Matteo Franceschetti** [1:11:36] Yeah. You made me think of this thing. I don't remember the exact words, but I think there is Tony Robbins saying that a lot of people that are very driven, they are always trying to please someone since when they were kids. And I think it's one of their parents. **Harry Stebbings** [1:11:50] Yeah. **Matteo Franceschetti** [1:11:51] He says, you're always trying to please one of your parents, or maybe no, it might be slightly different based on childhood. So that is another thing. Particularly when I hire chief of staffs, I always make them these questions. And I say, you don't have to answer to me, but if you feel comfortable, think about that. **Harry Stebbings** [1:12:09] Do you want to hear something even more specific that everyone gets angry at me for, but honestly, I don't really care anymore? It's actually much more specific than that. And I've spent a huge amount of time studying it. **Matteo Franceschetti** [1:12:19] Oh, really? **Harry Stebbings** [1:12:20] Which is actually most often, it is boys, and it is boys' relationships with their fathers. And it is a broken relationship with their father where they're trying to prove to them that they can be something they're worthy. And that is how it most often manifests. Very rare is it, and they see with mother. **Matteo Franceschetti** [1:12:38] Yeah. It makes sense. **Harry Stebbings** [1:12:40] Really interesting. **Matteo Franceschetti** [1:12:41] Yeah. **Harry Stebbings** [1:12:42] Do you have a relationship with your father? **Matteo Franceschetti** [1:12:44] Yeah. He died, but I had a relationship. But I still think he set the bar. And part of what drives me is also probably, if I had to guess, something that almost to meet that bar, but I don't know. **Harry Stebbings** [1:12:58] Did he see Eight Sleep become successful? **Matteo Franceschetti** [1:13:00] No. It's funny because if you go back to when my dad died, I was still a lawyer in Milan. So he wouldn't know I live in the US. He wouldn't know I'm in Silicon Valley. He wouldn't know I'm an entrepreneur. He wouldn't know I'm married to a Mexican woman. It's funny because if you had the cut-off date on that date, my life would be so different from what happened after that. So I'm two different I'm the same person, but in two different worlds. **Harry Stebbings** [1:13:31] I'm sure he'd be so proud. **Matteo Franceschetti** [1:13:33] Yeah, yeah. The early days was hard because when I started becoming an entrepreneur, my mom didn't want because my mom was a teacher in high school that in Italy, you make probably 1,000 euros, something like that, 1,500. And so she didn't have any means if I would fail as an entrepreneur. But I was doing well at the law firm, and so I knew that probably my boss would take me back if I would fail as an entrepreneur at Allen & Overley. And so I took the risk. But I had the nightmares for many years after that that I had to go back to the law firm. **Harry Stebbings** [1:14:16] What advice would you have to a young person in their career on taking risk? I was a law student too, by the way. **Matteo Franceschetti** [1:14:25] Oh, really? **Harry Stebbings** [1:14:26] Because I was told that that was a secure life. We didn't have that much money either. And it's like, you know that you'll do OK as a lawyer. **Matteo Franceschetti** [1:14:33] Exactly. **Harry Stebbings** [1:14:34] What would you advise them? **Matteo Franceschetti** [1:14:37] So we talk about this with Alex, with my wife, a lot because we imagine this moment where I'm working. So I come from this city called Ferrara. Ferrara is a 150,000-people city in the middle of Italy with a castle in the middle, and there are the walls from 1600-ish all around. And so now sometimes we joke about when she comes to Ferrara and we go see my mom, she says, how the hell did you go from this city to the US and Silicon Valley, AI, and everything you do? And so we joke about if you were meeting a kid now on the street and he would ask you how to get where you got, what would you tell them? And the funny thing is, I thought about this a lot, but I don't have an answer. I don't know. I just kept moving things. I saw opportunity. I went for the opportunity. I failed here, but that opportunity unlocked that other opportunity on this connection. And so it's impossible to explain how you go from I didn't even speak English until when I was 24. I almost knew nothing about computers until then. And then after I graduated, I saved enough money with my first tiny startup, call it startup in Italy. And then my dad took a loan to send me to San Diego to study English. And then with that loan, I was able, because I graduated with honor, to get into the big law firms. But even there, everything changed. And I'll tell you this story because my mom one day brought back home. I was around 20, 21,right? And it was no, I was 20. It was my first year of college. In Italy, it was four years. And I was not a great student. I hated school. I was terrible. And so I started university with just mid-level grades. But I didn't like the idea of becoming a lawyer, just a traditional lawyer in this small town doing tiny things. I wanted something international. And she brings this magazine that was coming with this journal called Sole 24 Ore, which is the Italian Wall Street Journal,right? And this magazine was talking about these big law firms that they were doing these international transactions, doing IPOs and securities. So I start learning about these law firms, and I discovered that the only way you can get in are two conditions. You need to speak English, and you need to graduate with magna cum laude. And then in my typical faction, I say, OK, if those are the two conditions, I'll get it done. And so in Italy, the scores when you go to college are from 18 to 30. I was averaging 23. From that moment on, it was 30 with magna cum laude every single, almost every single exam. I graduated magna cum laude. We take the loan. I go to the bank with my dad. They give him the loan. I go to San Diego, learn English, and then I get into fresh fields, then Allen & Overley, and then I become an entrepreneur. **Harry Stebbings** [1:17:42] But why? I can tell you, we used to go to Chelsea Football Club every week, and we didn't have that much money, sat in regular seats that weren't very good. This sounds really descriptive and weird. I hated the smell of beer, and it was horribly aggressive in football stadiums back in 2000. You could never pee at halftime because there were too many men trying to get in, and I was five, six, seven, eight. And then one day, a friend of mine who was very rich took me to their box or corporate, and it was beautiful. It didn't stink of beer. It wasn't aggressive and horrible. You could pee at halftime. And don't laugh. My eyes were open to like, oh my God. I hated it before, and life was so much better with money. **Matteo Franceschetti** [1:18:26] Yeah. **Harry Stebbings** [1:18:27] And it gave me drive. **Matteo Franceschetti** [1:18:28] Yeah. **Harry Stebbings** [1:18:29] Where do you pin yours to? **Matteo Franceschetti** [1:18:33] Well, I think I always had that drive because I was doing a lot of sports before,right? So when I was a teenager, I was playing tennis competitive. **Harry Stebbings** [1:18:40] But you've got to change your life to go from 23 to 30 and to get magna cum laude and speak English and go to San Diego. **Matteo Franceschetti** [1:18:49] Yeah. **Harry Stebbings** [1:18:51] Why? **Matteo Franceschetti** [1:18:52] I don't know. It just clicked. And it's funny because at least in terms of anything school-related, I never had that. But then I'm the type of guy that when I have a goal, then you don't stop me. I become a beast. I will outwork you. You can't stop me. And something clicked. And that is what happened back then. Then the why, I don't know. I just think I didn't want to work for the tiny two-people law firm of my dad doing things in Ferrara. **Harry Stebbings** [1:19:23] Is that your greatest weakness? Because I, too, am like you, but that's why I'm having a hip operation at 30. My shoulder is fucked and my knee is unrepairable. I can't run anymore because I ran 100-mile races so often that my body's just so broken. I'm a beast. I'm a broken beast. **Matteo Franceschetti** [1:19:44] It's the same as what I was telling you before. I have a sin. I can't stop. If you can put me on a boat in Sardinia, I'll I like so much what I do that then the downside is I don't stop and I get bored after a few days. And so that is why we call it the sin. I can't relax,right? **Harry Stebbings** [1:20:10] Do you ever want to? One thing for me is I lie in bed at night and actually my mind races. And it's kind of sometimes very lonely alone in my head at night. **Matteo Franceschetti** [1:20:21] Well, now the people I admire the most, not outside business, not people that you want to emulate, are really people that you might find in many places in the world. But call it in Italy because I'm Italian. That are on the beach, that they're just walking. Actually, there is this guy. We were having dinner last week, my wife and I. And we see this gentleman, and he's having dinner in a pretty nice restaurant. We were in Milan for work. And he's having dinner in this nice restaurant. And he's there drinking his glass of wine. I don't drink alcohol. And he's eating, I don't remember, but a beautiful meal. And he's there, perfectly dressed, without the phone, alone just thinking. And obviously, I know nothing about the guy. I know nothing. But I just say, I admire the guy so much that he was there, treating himself without looking at the phone, just thinking and enjoying his meal. And this apparently to me piece, that is something I admire from people because I struggle with that. **Harry Stebbings** [1:21:28] Matteo, listen, I so appreciate you being so open. I love conversations. It's nice the second time because you're able to have a friendliness that you don't have the first. So thank you so much for being so amazing, and this has been awesome. **Matteo Franceschetti** [1:21:41] Of course. Thank you so much. --- This library is powered by PodHood (https://podhood.com), the podcast website platform.