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 its valuation has doubled since its last round, but didn’t disclose specifics.
“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 recovery. This approach shifts sleep technology from reactive tracking to proactive, personalized intervention, said Zatarain.
The sleep tech market features a range of competitors, from wearable devices such as Oura, Fitbit, and Apple, to medical-focused companies like ResMed, as well as smart mattress and sleep surface makers, including Sleep Number and ChiliSleep.
Eight’s core differentiator, Autopilot, “builds a personal blueprint from night one, then adapts continuously, accounting for seasonality, travel, stress, training, illness, or even a bad night before. And it works independently for each side of the bed,” Zatarain said.
The startup plans to use the new funding to accelerate its growth in the medical sector, building on the Pod’s health-monitoring capabilities. With the introduction of Health Check, the system can monitor cardiovascular and respiratory patterns with up to 99% accuracy without the need for wearable devices, according to the company.
“We’re not replacing your doctor, but we are giving you nightly, high-accuracy health monitoring so you can act early if trends shift. Over time, this data can complement medical care,” Zatarain said.
Eight’s recently launched Hot Flash Mode employs AI-driven cooling to relieve menopause symptoms. It is also working on contactless solutions for sleep apnea. The company is pursuing FDA approval and will utilize the Pod’s real-time biometric monitoring to deliver personalized interventions.
Eight Sleep currently ships to over 30 countries — including Canada, the U.K. and EU nations, Australia, Mexico, and the UAE — and is now planning to expand into China. The CMO told TechCrunch that China, as one of the world’s largest consumer markets, is seeing a rise in a health-conscious middle class that prioritizes sleep and overall wellness.
Regarding sensitive health data, Zatarain said the company complies with each locale’s regulations, including for data storage.
“Privacy is foundational. All data is encrypted, never sold, and fully private. We comply with GDPR and CCPA, and unlike many devices, we don’t use microphones. Our biometric sensors are embedded in the bed surface — no wearables, no invasiveness, just passive, high-accuracy insights,” Zatarain said.
Source: https://techcrunch.com/