He Built A $600 Million Business By Transporting Medicines At The Right Temperatures

In the world of entrepreneurship, few stories resonate as powerfully as that of Richard Ettl, a young global leader recognized by the World Economic Forum. Born in Austria, Richard’s journey is a testament to the transformative power of vision, resilience, and a commitment to sustainability.

Listen to the full podcast episode and review the transcript here.

Early Roots and Global Perspectives

Richard’s childhood unfolded on a farm outside Southsburg, where he cultivated a deep connection to nature. However, at age 10, a pivotal shift occurred when his family relocated to Vienna.

This move exposed him to the world of international education, language, and business, setting the stage for his global mindset.

Attending an American international school broadened Richard’s worldview, giving him a glimpse into the possibilities beyond borders.

His father, a successful businessman, became a visible figure in his life, providing insights into the highs and lows of the business world and shaping Richard’s entrepreneurial spirit.

Lessons from Success and Failure

Richard’s early exposure to business included both success and failure. His father’s ventures, advising pension funds and navigating investments, demonstrated the dynamic nature of entrepreneurship.

Richard actively participated in restructuring a fitness studio, learning valuable lessons about resilience and adaptability in the face of setbacks.

Richard was keen on going to Stanford University to study mathematics like his father, who has a Ph.D. in mathematics. However, he eventually pursued entrepreneurship in Switzerland, where he met his co-founder and mentor.

Together, they founded an institute promoting value-based entrepreneurship across ten universities, impacting over 3,500 students.

A Unique Academic Journey

Dissatisfied with the traditional curriculum which was called business management, Richard transformed his university experience, creating his own entrepreneurship program.

Emphasizing the importance of marketing, he sourced courses from diverse departments, illustrating his ability to think outside the conventional academic box.

After University, Richard dived into building the Institute for Value-Based Entrepreneurship for aspiring founders, which gave him the rare opportunity to discuss business plans over dinners. He recalls listening to the top CEOs and entrepreneurs in Switzerland as they spoke at the dinners.

Richard also interacted with owners of family-owned businesses, which he realized were the true champions in that domain.

For example, one company is one of the leaders in installing ski lifts, and its owner talked about installing the contraptions in different locations like Brazil, Colorado, and Teheran, Iran.

These discussions gave Richard valuable insights into running a global organization that can have 200, 1000, or even larger workforces.

Enter SkyCell: Bridging Innovation and Pharma Logistics

At one of these dinners, Richard met the founder of a Swiss stock-listed but family-owned manufacturing company. Later, he would go on to join him as an assistant and work on how he could contribute to the company.

Richard’s strategic initiative, focused on lean manufacturing, saved the company 120 million Swiss francs. However, a serendipitous call from a former acquaintance, Niko, marked the beginning of a groundbreaking venture.

Nico is a civil engineer and had executed the management buyout of a civil engineering firm. He had repositioned the company into building large structures, mostly pharma plants, in Switzerland. Nico realized that the structures were badly insulated and non-sustainable, in need of solutions.

Nico wanted to team up with Richard for his manufacturing insights so they could design the first sustainable high-performance insulation material. Since Richard had extensive experience with this task, they teamed up and pitched the design to one of the big pharma companies in Basel, Switzerland.

Although the owner liked the design, he needed a new packaging solution to transport their pharmaceutical products. And that was the genesis of Skycell.

SkyCell emerged from Richard’s collaboration with Nico. They revolutionized pharmaceutical logistics, showcasing the intersection of innovation, technology, and a commitment to environmental consciousness.

Richard recalls developing nano coding that reflects 96% of radiation, both visible and invisible light, that formed the mainframe of their technology. As a result of this innovation, they effectively brought down the production costs from around a thousand dollars per square meter to less than $70.

Eventually, SkyCell pivoted from insulating buildings to designing packaging for the pharma industry, specifically to help them transport temperature-sensitive and pharma products.

The concept proved to be groundbreaking since it ensured the efficacy and self-life of the products they were transporting.

Navigating Challenges and the Impact of COVID-19

SkyCell faced challenges breaking into the conservative pharmaceutical industry. However, a pivotal moment with a Japanese pharma customer catapulted them into the spotlight, proving their solution was 20 times more effective than existing alternatives.

While SkyCell played a crucial role in transporting COVID-19 vaccine materials, the pandemic also brought unique challenges.

The vaccine distribution focus led to a temporary slowdown in SkyCell’s growth even though they have effectively helped transport the raw materials for making around two billion of the shots.

Despite this, Richard’s leadership steered the company back to its 40-60% growth trajectory, and they secured substantial funding. SkyCell raised $220M worth of equity funding. They also had access to debt funding at interest rates of 3.2%.

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Sustainability and Technology as a Business Imperative

From the outset, Richard believed in the business-critical nature of sustainability. SkyCell’s focus on reducing the pharmaceutical industry’s CO2 footprint by 50% aligns with a growing global emphasis on environmentally responsible practices.

This commitment not only contributes to the planet but also resonates with pharmaceutical companies increasingly prioritizing sustainable supply chains. SkyCell’s success is also not solely attributed to its physical product but also to its robust use of technology.

Richard emphasizes the company’s transition into an IT company with hardware, highlighting the pivotal role software and IoT play in monitoring container usage, ensuring temperature-sensitive pharmaceuticals remain intact during global transit.

Recognitions and Future Aspirations

SkyCell’s impactful contributions during the COVID-19 vaccination campaign earned Richard a spot in the World Economic Forum’s Global Innovator Program. The company’s recognition as a key player in sustainability has opened doors to collaborations focused on green solutions in various industries.

As a Young Global Leader, Richard is committed to leveraging his experiences to guide others. Reflecting on the journey, he acknowledges the unpredictability of entrepreneurship, emphasizing the importance of selecting the right investors and the support system from co-founders and family.

Conclusion: A Trailblazer in Pharma Logistics

Richard Ettl’s journey from a farm in Austria to a global leader at the forefront of sustainable pharma logistics exemplifies the transformative power of visionary entrepreneurship. SkyCell’s trajectory reflects a harmonious blend of innovation, resilience, and a commitment to environmental responsibility.

Richard’s journey is like a beacon for aspiring entrepreneurs navigating the dynamic landscape of business and technology.

Listen to the full podcast episode to know more, including:

• The entrepreneurial journey from a rural farm in Austria to a global leader underscores the transformative power of resilience and global perspectives.
• SkyCell’s success story in pharma logistics demonstrates the pivotal role of sustainability, reducing CO2 footprints by 50%, and aligning with the evolving values of the pharmaceutical industry.
• The fusion of innovation, technology, and commitment to sustainability propels SkyCell’s mission to revolutionize pharmaceutical logistics, as evidenced by their 20x more effective solution for temperature-sensitive products.
• SkyCell’s recognition in the World Economic Forum’s Global Innovator Program and Richard Ettl’s inclusion as a Young Global Leader affirms the company’s impactful contributions and commitment to sustainable practices.
• Beyond a physical product, SkyCell’s evolution into an IT company highlights the critical role of software and IoT in monitoring and ensuring the safe transit of pharmaceuticals on a global scale.
• The entrepreneurial journey comes with unpredictability; Richard Ettl emphasizes the importance of thoughtful investor selection and the invaluable support system from co-founders and family.
• SkyCell’s ability to navigate challenges during the COVID-19 pandemic showcases the company’s resilience, with a renewed growth trajectory post-pandemic, securing substantial funding and positioning itself for continued success,

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