Eight Sleep raises $50M at $1.5B valuation

Sleep tech institution Eight Sleep contiguous said that it has raised $50 cardinal successful a strategical circular led by Tether Investments astatine a valuation of $1.5 billion. This caller circular comes aft the startup closed a $100 cardinal circular past August from investors specified as HSG, Valor Equity Partners, Founders Fund, and Y Combinator.

The startup, which sells astute mattress accessories that tin way your slumber patterns and set temperatures arsenic you sleep, didn’t disclose its valuation for the erstwhile round, but it was valued astatine $500 cardinal post-money successful 2021 erstwhile it raised an $86 cardinal Series C led by Valor Equity Partners. The institution has raised implicit $310 cardinal to date, according to Crunchbase.

Eight Sleep said it was free-cash-flow affirmative successful 2025, and plans to usage the caller backing for caller products, planetary expansions, and objective validation. The institution presently ships its products to implicit 34 countries.

The institution said it wants to grow beyond selling user products, and has sought support from the U.S. Food and Drug Administration for products that tin observe and mitigate slumber apnea.

“What we’re gathering doesn’t beryllium yet — a strategy that understands your assemblage amended each nighttime and acts connected that knowledge. Our extremity is to physique the defining wellness exertion institution of this generation,” Matteo Franceschetti, co-founder and CEO of Eight Sleep, said successful a statement.

The institution said that it wants to enactment connected a sleep-focused AI cause that controls the temperature, elevation and firmness of its products proactively and prevents slumber disruption. It said that the cause simulates galore scenarios earlier users get into furniture and prepares its products for optimal sleep.

Eight Sleep said that its models are trained connected proprietary data, and aboriginal pilots of its AI-driven guidance person resulted successful radical changing their habits, specified arsenic workout timing, caffeine intake oregon slumber schedules, based connected the investigation provided by the app.

Last year, the institution launched a hydro blanket that controls temperature, and a caller pillow screen that tin supply somesthesia power for the caput and neck.

Eight Sleep was caught successful a contention past October erstwhile users’ mattress accessories stopped moving due to the fact that of an AWS outage arsenic they couldn’t link to its servers. The beds overheated, and the institution had to adhd an “outage mode” to its products for specified situations.

Eight Sleep competes with the likes of BedJet and Chillpad connected the mattress and somesthesia power front, and with Oura and Whoop successful the slumber tracking market.