Eight Sleep raises $50M at $1.5B valuation

Sleep tech firm Eight Sleep right this moment mentioned that it has raised $50 million in a strategic spherical led by Tether Investments at a valuation of $1.5 billion. This new spherical comes after the startup closed a $100 million spherical final August from buyers similar to HSG, Valor Fairness Companions, Founders Fund, and Y Combinator.

The startup, which sells sensible mattress equipment that may monitor your sleep patterns and regulate temperatures as you sleep, didn’t disclose its valuation for the earlier spherical, nevertheless it was valued at $500 million post-money in 2021 when it raised an $86 million Sequence C led by Valor Fairness Companions. The corporate has raised over $310 million thus far, in accordance with Crunchbase.

Eight Sleep mentioned it was free-cash-flow constructive in 2025 and plans to make use of the brand new funding for brand spanking new merchandise, international expansions, and medical validation. It at present ships its merchandise to over 34 nations.

The corporate mentioned it desires to broaden past promoting client merchandise and has sought approval from the U.S. Meals and Drug Administration for merchandise that may detect and mitigate sleep apnea.

“What we’re constructing doesn’t exist but — a system that understands your physique higher every night time and acts on that data. Our aim is to construct the defining well being know-how firm of this technology,” Matteo Franceschetti, co-founder and CEO of Eight Sleep, mentioned in a press release.

The corporate mentioned that it desires to work on a sleep-focused AI agent that controls the temperature, elevation, and firmness of its merchandise proactively and prevents sleep disruption. It mentioned that the agent simulates many situations earlier than customers get into mattress and prepares its merchandise for optimum sleep.

Eight Sleep mentioned that its fashions are educated on proprietary information, and early pilots of its AI-driven steering have resulted in individuals altering their habits, similar to train timing, caffeine consumption, or sleep schedules, primarily based on the evaluation supplied by the app.

Final yr, the corporate launched a hydro blanket that controls temperature, and a new pillow cowl that may present temperature management for the pinnacle and neck.

Eight Sleep was caught in an argument final October when customers’ mattress equipment stopped working due to an AWS outage that prevented them from connecting to its servers. The beds overheated, and the corporate had to add an “outage mode” to its merchandise for such conditions.

Eight Sleep competes with the likes of BedJet and Chilipad on the mattress and temperature management entrance, and with Oura and Whoop within the sleep-tracking market.