From the U.S. to Europe and Back Again
SkyDeck Startup Stip Reflects on its Business Journey Through Two Continents and Cultures
This week, Berkeley SkyDeck announced the launch of SkyDeck Europe; a new accelerator located at the newly developed Milano Innovation District (MIND); a $4 billion innovation park in Milan, Italy. The new accelerator is a collaborative initiative between three key stakeholders including: Berkeley SkyDeck, Cariplo Factory; an innovation hub specializing in entrepreneurship programs, and Lendlease; a global real estate, smart space, and investment group.
I caught up with Edoardo Vallebella, Founder and CEO of Stip; an AI-based digital customer service solution, to get insights into his successful journey, understand how SkyDeck helped him across international borders, and get his take on the value of our new program in Europe.
George: Edoardo, good to see you! It’s been about two years since you graduated from SkyDeck’s Fall ’19 Cohort. Catch me up on what you’ve been up to and how things are going with Stip!
Edoardo: Yeah, it’s been a busy 2 years! Shortly after SkyDeck the pandemic hit and I came back to Italy. It was a good opportunity to test what we had learned about creating a strong team and applying some of the negotiation skills and business skills. Since the program we’ve changed our target partners from small and medium companies to large companies like Lavazza, Barilla, and FCA for example, that have headquarters in Italy or broader Europe, but who also have a strong presence in the US. Developing our US presence is important for us because we expect to return in the future, so we’re focused on customers that have a global footprint, not just a European one to keep that door open. And it’s been going great! It’s been a very productive couple of years for us, and SkyDeck helped us change our mindset and develop a new perspective that has helped us grow.
George: That’s fantastic! It’s always fulfilling to hear the details of our startups’ journeys and learn about their path to success. You mentioned SkyDeck helped you change your mindset and perspective, could you elaborate?
Edoardo: I’ve been trying to explain this to Italian founders here but it’s difficult because of the mentality that is already established in the startup culture. Before SkyDeck I would go to a prospective corporate partner and say, “We are a small startup and we would like to show you something that may help you.”, and this is normal in Italy; accelerators and investors, when they connect you with a prospective corporate partner, they say the same thing; “Here is a startup that is small but maybe you can help them”. However, when SkyDeck would introduce us to prospective partners they would say, “This team can solve all your relevant problems, and they are interested in speaking with you about how they can help.” They positioned us as the protagonists in the meeting, the ones that had something to offer, the ones that had an opportunity for the partner, and they also helped us understand how to communicate our value better. This led to a far more valuable conversation for both us and the partners, because we could communicate as equals looking to identify the value in the partnership. So, when I went back to Italy, I was far more confident in my conversations because my perspective now was that I was working with a partner to identify a business opportunity, instead of seeming like I was a small startup trying to get business.
SkyDeck also helped me realize that the value of my company to prospective partners was 10x greater than I had originally expected, and this also significantly improved our sales cycle, and all other parts of the sales process. So there was a lot of business learning about my technology and how it can generate greater value, and there was a perspective learning about how to approach conversations, knowing what our startup had to offer, and communicating that value.
They helped us realize how our startup could solve big problems within a large corporation, and the importance of our product for medium and large companies. They didn’t say, “You are small so you will have a small impact.”, they taught us, “You are small but you can have this massive impact on big companies.” That was the most important thing that we understood. How to think big and scale.
George: I’m so happy to hear that! It’s true, we work hard on helping startups think big and be bold. Sometimes founders can get tunnel vision around their own initiatives and we try to help them see the broader picture of opportunities.
Edoardo: I agree, and I think it’s the same thing with investors — this cultural challenge. In Italy, when you go to a standard Italian accelerator, you have to negotiate with the investors, and they are the leaders of the negotiation. But in the US, you are speaking on more equal terms because it’s believed that the startup is at the core of the negotiation. So, what we would like to see in Italy — because the ecosystem is not the same as it is in the US — is if we could help change the mentality of the investors.
George: What are some of the other aspects of SkyDeck that you found valuable in your path towards success?
Edoardo: I think another really valuable thing in SkyDeck that I would like to have here in Italy too, is the founder ecosystem and how we interacted with each other. At SkyDeck it’s the community of the founders of the startups that is truly valuable. It’s super helpful for us to interact with other startups because in talking with everyone else you can find that they had solutions to some of the problems that you are facing because they already went through it and can solve it in one second. Sharing advice and insights was very important and in Italy it’s not so common to have that kind of ecosystem.
George: I agree, we believe that the cross pollination of information between the startups is an important part of the experience and we do our best to encourage as much interaction and interactivity as possible.
As you know, SkyDeck is launching an accelerator focused on European startups. Given your experience and what you know about our program, what do you think will be most valuable that we will contribute to the European ecosystem? What are some of the most exciting things that can come from this initiative to all startups?
Edoardo: I think it would be very valuable to establish a more lateral way of thinking as they have in the US. I think it would be important to bring some of the US mentality to the EU because it’s totally different here, and I think this way of thinking is why startups tend to learn and succeed more in the US. I also think it would be important to help develop the mentality of the investors because it’s important for an investor to be a “friend” to a startup, not just someone who is looking to profit. Obviously, it’s normal to want to make money for an investor, but the difference is that in the EU the investor wants to make as much money as they can, as fast as they can. In the US, investors want you to grow your business as fast as you can which will lead to better returns later. This is better because it’s a better relationship because they are there to support you and try to help you grow.
George: I agree with you, and I think that one of the things we have in Silicon Valley that we’re trying to bring to the EU is that sense of relationship. And it sounds like you’ve been sharing these learnings and experiences with your partners and the people you do business with. I’m excited to think that there could be a little ripple effect there?
Edoardo: Yes, what SkyDeck changed in our minds helped us to promote it to our ecosystem of investors, our customers, and our partners, and it was very important for us because we are able to grow so much thanks to that.
George: It’s so great to hear about your exciting journey and the success that you have achieved. I think it’s amazing how you graduated right at the start of a pandemic and re-focused on targeting global partners with a footprint in both Italy and the US. And I’m so happy we are a part of your adventure. Congratulations again on all your success!
SkyDeck Europe opens applications for Batch 14 on January 31st. Startups based in Europe that are interested in applying can learn more: skydeck.berkeley.edu/milano.
George Panagiotakopoulos is the Director of Global Innovation and Partnerships at Berkeley SkyDeck, UC Berkeley’s global accelerator.
