$1.4 million in revenue at YC Demo Day. Even in 2015, Eight Sleep was a winner. This morning, I watched their original pitch.
What Matteo Gets Right
Founder Matteo Franceschetti gives a brief, focused pitch. He clearly explains what the company does and shows us strong traction.
Luna, as Eight Sleep was then called, makes mattress covers. The cover warms you or cools you, depending on your needs.
Getting to the ideal temperature helps you sleep better.
Matteo shows us he’s solving a huge problem. One third of Americans struggle with sleep.
Matteo’s deck is brief, with just 14 slides. Each slide contains a single thought. Matteo sticks with a brief phrase and big text, making it easy to read and absorb quickly.
The Trump Card: Gobs of Revenue
Best of all, Matteo has tons of revenue — $1.4 million by Demo Day.
This came from 6,000 pre-orders. 6,000 people paid thousands of dollars each before the product is even out!
Nothing is more convincing than cash in the bank.
What You Can Learn from Matteo
The most important thing Matteo gets right is selling 6,000 mattress covers.
Focus on getting some sales before you try to raise a round. If you have a few customers, raising capital is much easier.
When you’re ready to raise, make your deck brief and focused like Matteo’s. One thought per slide, no walls of text.
Finally, demonstrate your product.
Matteo showed investors a bed with a Luna cover. That’s a bit harder with a SaaS app, but you can still demonstrate how your product helps customers.
Wrap-Up
Investors don’t love consumer products. But Matteo shows us a high value product, a big market, and tons of sales.
VC’s ate up Matteo’s pitch, investing $6 million in the seed round in early 2016. That was a huge seed at the time.
Today, Eight Sleep is one of the most successful consumer products of the last decade. They recently raised $100 million at a $1 billion valuation.
Follow Matteo’s lead. Ring the register. Make a short and focused pitch.
Do that, and you could raise millions just like Matteo.
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