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

In the United States, about one-third of adults struggle with inadequate sleep, prompting a growing interest in technology aimed at monitoring and improving sleep quality. Eight Sleep, a New York-based startup established in 2014, has developed AI-driven sleep technology that aims to turn beds into tools for preventive health care. On Tuesday, the company announced it has successfully raised $100 million from a group of investors including HSG, Valor Equity Partners, Founders Fund, Y Combinator, and notable athletes such as Ferrari F1 driver Charles Leclerc and McLaren F1 CEO Zak Brown. This latest funding round brings Eight Sleep's total capital raised to approximately $260 million, according to Pitchbook. The company previously secured $86 million in a Series C funding round in 2021, which valued it at $500 million post-money. Alexandra Zatarain, co-founder and CMO of Eight Sleep, expressed confidence in the company’s future, stating, “If we successfully execute our AI roadmap, launch internationally, and develop condition-specific interventions, achieving unicorn status will naturally follow.” Eight Sleep's flagship product, the Pod, combines smart mattress technology with AI to monitor and enhance sleep quality. It tracks various metrics such as sleep stages, heart rate, breathing patterns, and movement, and automatically adjusts settings like temperature and firmness based on this data. The company has reported generating over $500 million in Pod sales since its launch in 2019 and has seen its revenue increase tenfold. Eight Sleep has also gathered insights from over one billion hours of sleep data. With a workforce of just over 100 full-time employees, the startup is now expanding its product line with the introduction of Sleep Agent, an AI system that utilizes large language models to create thousands of digital twins for users, aiming to optimize nightly recovery through proactive interventions. Zatarain noted that Eight Sleep differentiates itself with its Autopilot feature, which creates a personalized sleep blueprint from the first night and adjusts continuously based on various factors such as seasonality and stress levels. The startup intends to leverage its new funding to enhance its presence in the medical field, building on the health-monitoring features of the Pod. The newly launched Health Check system can monitor cardiovascular and respiratory patterns with remarkable accuracy, all without requiring wearable devices. Zatarain clarified, “We’re not replacing your doctor, but we are providing nightly, high-accuracy health monitoring that allows for early intervention if trends change.” The company has also introduced a Hot Flash Mode to alleviate menopause symptoms through AI-driven cooling and is developing contactless solutions for sleep apnea, while pursuing FDA approval for its innovations. Currently, Eight Sleep ships to over 30 countries, including Canada, the UK, Australia, and the UAE, with plans to expand into China. Zatarain highlighted the growing health-conscious middle class in China that values sleep and wellness. Addressing concerns over sensitive health data, she emphasized that the company adheres to local regulations regarding data storage and privacy, ensuring that all information is encrypted, not sold, and fully private. Unlike many devices, Eight Sleep does not use microphones; its biometric sensors are integrated into the mattress surface, providing passive yet precise insights.