Eight Sleep raises $100M to expand its AI-powered sleep tech

Summary

Roughly one in three adults in the U.S. regularly gets insufficient sleep, driving demand for tools that can monitor, analyze, and enhance rest. Eight Sleep, founded in 2014, offers AI-powered sleep tech products that promise to transform your bed into a preventive health device. The New York-based startup announced Tuesday that it raised a fresh $100 million round from investors such as HSG, Valor Equity Partners, Founders Fund, Y Combinator and athletes including Ferrari F1 driver Charles Leclerc, and Zak Brown, who is the CEO of McLaren F1. With this round, Eight Sleep has raised roughly $260 million total, Pitchbook estimates. It previously raised an $86 million Series C in 2021 by investors who assigned it a $500 million post-money valuation. Eight Sleep said that it is “approaching unicorn territory” and that its valuation has doubled since its last round. “If we successfully execute our AI roadmap, launch internationally, and develop condition-specific interventions, achieving unicorn status will naturally follow,” Alexandra Zatarain, co-founder and CMO of Eight Sleep, told TechCrunch. Eight offers smart mattresses that integrate software and AI to track and enhance sleep quality. Its flagship product, Pod, offers features like measuring sleep stages, heart rate, breathing patterns, and movement. Using these insights, it automatically adjusts temperature, elevation, and firmness. It can also detect snoring and automatically elevate the base in response, according to the company. The company has generated more than $500 million in Pod sales, expanded its revenue tenfold since launching the product in 2019, and collected insights from over one billion hours of recorded sleep data, it says. Eight, which employs just over 100 full-time staff, is now expanding beyond the Pod with its Sleep Agent, an AI-driven system that leverages large language models to create thousands of digital twins for each user and predict outcomes, with the goal of optimizing nightly reco...