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>> I got a question for you. Yeah.

>> How do you sleep at night?

>> Oh god. With much difficulty.

[laughter]

>> And Krady Weiss wants to fix that.

>> Uh I'd love to hear from an in terms of

uh what solutions they have for us. But

yeah, and Katy Weiss is the CEO of

Hatch, which is a sleep company founded

in 2014 that manufactures bedside

devices for better sleep. They have sold

more than 7 million devices, Tim. So,

>> uh we are one of the homes that has one

of these devices, not the new one that

she's trying that she's trying to sell

to adults. We got We're a Hatch family

uh because of our our babies. Well,

they're not babies anymore, but one of

them still cannot sleep without uh his

hatch. Uh so, he still has it. And joins

us from our San Francisco bureau. Uh,

good to have you on the program. I want

to talk about the latest devices and and

how you're branching into the entire

family. You started with kids, but what

I'm what I'm really interested in

hearing about from you is on a day where

we're talking about, you know, a $5

trillion company getting a new CEO. How

you stand out in a in a as an

independent company in a in a world

where it's very challenging to create

hardware. How do you do that?

>> Great question. First of all, it's so

nice to be back, Tim. Thanks for having

me and nice to meet you, Christine. Um,

Hatch is um, a company that is laser

focused on helping people to get good

sleep. And the way we do that is by

leaning into helping you create healthy

sleep routines. Um, getting good sleep

is not a data problem. It is really a

behavior problem. And so that's what we

do is we create a bedside device that

helps you create and maintain healthy

sleep habits. And the way we stand out

is um because we are laser focused on

helping you with behavioral um part of

sleep which is really what any sleep

scientist would tell you is the biggest

struggle with sleep. Now it's very

interesting because Hatch of course is

it's not attached to your body unlike a

lot of other sleep trackers, right? You

have uh wristwatches that track your

sleep. I'm wearing a ring that tracks my

sleep as well. So what sets uh Hatch's

devices apart and is it really

drastically different that the fact that

it is not attached to you while you're

sleeping?

>> Yeah. So the Hatch sleep clock which is

the latest product in our evolution um

contains all the features that people

know and love about Hatch um we have

bedtime audio to help you fall asleep.

We have a sunrise alarm clock but what

this also includes is a sleep sensor

that's built into the device so you

don't have to wear anything. You don't

have to charge anything. And in the

morning, we will tell you how you slept.

We marry the data about how you slept

with the data about your behavior. When

did you go to sleep? When did you

actually fall asleep? When what did you

listen to? What bedtime content did you

listen to? How many times did you

snooze? etc., etc. And by looking at

those two sets of data, we can coach you

over time to develop even better sleep

habits so that you get that sleep that

we all desperately need. I've got the

the one of the new products in my hands

right now. You can see it right here. Um

if you're if you're watching on YouTube

or Bloomberg Originals. So, where's the

sensor in this?

>> The sensor is built in um to the device.

You can't see it and you don't need to

see it. It works um with no contact on

the body and um it senses your

respiration rate and also your movement

and we can algorithm algorithmically

translate that into how you slept. How

do you know that's that's me and not my

partner?

>> So, it picks up it actually works really

well. My partner and I my husband and I

both have one on the our each of our

nightstands. Um, and the way the

technology is built, it picks up the

first thing that it sees. Um, so as long

as it's next to me and not and my

husband's is next to him, um, it picks

us individually up.

>> Oh. Do you end up

>> In other words, you need In other words,

you need two of them.

>> If you have two sleepers, you need two

of them. Just like you have two alarm

clocks and two phones. Yeah. You each

need one. Do you end up comparing sleep

scores with your husband in the morning?

You know, who did better?

>> We actually don't um we we really don't

believe in a sleep score and we don't

publish a sleep score and that's very

intentional. Um a sleep score, you know,

let's say, you know, I got a score of 68

last night. I really don't know what to

do with that. It really just makes me

feel bad and it really leaves me

wondering, you know, what can I do to

actually get better sleep? It's kind of

like if you gave someone a scale and

expected them to lose weight. So really,

we focus on the coaching part of it on

helping to observe both your sleep data

itself, but also your behavioral data so

that we can then help coach you over

time so that you can develop a sleep

routine that you love and that's

effective for you. Because what we know

is a routine that you love and enjoy and

look forward to doing is something that

you're going to continue to engage with.

>> We're speaking with Anne Krady Weiss,

the CEO of Hatch. Man, as I've mentioned

to you in the past and when I saw you in

June at our our Bloomberg Tech event out

there in San Francisco, we got into TACH

because it was a sound machine and also

a um a light that that changes color. So

now my son knows he can get out of bed

when the light turns a certain color and

you can program it for for different

days. I'm curious what else the product

pipeline looks like now that you figured

out how to get into adults bedrooms.

What else are you thinking about?

>> We are laser focused. So when it comes

to baby and kid, we are in one in three

homes. We are totally dominant in that

market and we've helped millions of

families um help their kids to get good

sleep. And we are laser focused now on

the adult market where we are growing

very quickly. Um but it's a massive

market and we have lots of room to grow.

So we are laser focused there. But again

on helping you with the actual behavior

of sleep, we know people are not

sleeping well. Six in 10 Americans are

not getting enough sleep and we are

laser focused on what sleep science says

which is people need to develop great

sleep hygiene and routine and that's

where we are focused now I mean a lot of

other big companies right like Apple

Google uh investing a lot in just

generally health tracking and you know

Hatch is a smaller company more

specialized have you seen any interest

uh in terms of a potential takeover at

this

So we get lots of inbound um which we

love. We always love talking to people.

Um uh and we remain though laser focused

on helping customers. Um to me as an

entrepreneur, this is my second goround

as a um CEO and founder of a ventureback

company. If you stay laser focused on

your customer and helping them, good

things happen from a business

perspective.

>> Are are you thinking about good things

in the sense of being taken over? Are

you thinking about good things in the

sense of an IPO? what what would be the

exit for the venture capitalists?

>> I think that the reality is we are

staying laser focused on our adult

customer as our newest audience to go

after and we have tons of room to grow.

We are growing very quickly. We're

profitable. Um so we don't have any

definitive plans to do X or Y or Z. We

just will continue to build and continue

to grow and continue to help folks.

>> Can you do this without you think

raising any more money from venture

capitalists? So we don't need to raise

any money. Yeah, we are cash flow

positive. We actually generate cash. Um

but that said to be as aggressive as we

want to be. We definitely um we'll think

about you know how to grow even faster

um potentially with the help of outside

money but we certainly don't need it and

that's a wonderful position to be in um

as you likely know.

>> Yeah. Well, it's very interesting

because you know you have been building

sleep technology since 2014. What's the

next phase of growth here? Is it all

about the data that you collect from the

customers and you know how you put that

to work? Is it something that you can

perhaps use to help people sleep even

better uh by leveraging the data that

you've collected?

>> Yeah, the data is really important and

that's why we launched the Hatch Sleep

Block. Um the data is really important.

By the way, we also the the sleep data

itself we include for free. So we have

no subscription that's tied to the sleep

data. We believe that anything that

comes from your body should be included

with the upfront part of the part price

of the device. Um we actually do have a

subscription that we're really proud

about. It's called Hatch Plus. Um it is

the original bedtime audio content that

our team produces. Um we produce

something new every day. We have 3,500

titles and that is available again

optionally for $5.99. You do get some

audio content with the base device. Um

but again laser focused on making sure

we distinguish ourselves in actually

helping people know what to do with the

data. So the data is necessary but it is

not sufficient.

>> Yeah. You know I'm um wonder I'm think

back to the what we just talked about

with regard to venture capital and like

if you do need more money going out

there and raising money in an

environment like this where you're not a

company that's focused on AI, you're

focused on a different part of of

technology. Is that going to be a

challenge do you think?

>> So the reality is every company every

entrepreneur worth their salt is using

AI. We may not have AI in the our our

our um name but we absolutely use AI.

There is an incredible amount of data

that we get from our sleep sensor. And

there's also an incredible amount of

data that we collect over time about the

different choices you make about when

you go to bed, how many times you

snooze, how many times you woke up at

night. So we certainly use AI to help

create um to amalgamate and to and to

really find correlation and causation in

our data.

And what's kind of the uh I guess the

evolution for for customers then you

know do you foresee them evolving in the

way that they use your products and how

would you foresee adapting to that?

>> So um we started as Tim uh has

experienced himself we started in baby

and our customers actually pulled us to

adult. Our customers said, you know,

you're helping my baby and my kid great

get great sleep, but what about me? And

so, we started an adult in 2020,

beginning with um the fundamentals of

light and sound and um original audio

content to help you actually fall

asleep, distract your mind and fall

asleep. And we've added the data in this

most recent evolution. And so really our

goal is to help everyone in the family

to get good sleep and to get good sleep

um again by creating those behaviors and

those habits that people love and enjoy

and want to do night after night and

really feel successful doing night after

night.

>> And Krady Weiss, good to see you again.

Thanks for joining us on Bloomberg

Business Week Daily this afternoon. and

Crady Weiss, the CEO of Hatch.