Eight Sleep Raises $100M for AI-Powered Sleep Technology

The Growing Demand for Sleep Technology

Approximately one-third of adults in the United States experience regular sleep deficiency, which is fueling increased interest in technologies designed to monitor, analyze, and improve sleep quality. Eight Sleep, established in 2014, develops AI-powered sleep technology products intended to transform a standard bed into a proactive health management system.

Recent Funding and Valuation

The New York-based company recently announced a new investment of $100 million. This funding round included participation from investors like HSG, Valor Equity Partners, Founders Fund, Y Combinator, and prominent athletes such as Charles Leclerc, a driver for Ferrari F1, and Zak Brown, the CEO of McLaren F1.

Total Investment and Growth

Eight Sleep’s cumulative funding now totals around $260 million, according to PitchBook estimates. A prior Series C funding round in 2021 brought in $86 million, resulting in a post-money valuation of $500 million for the company. Eight Sleep reports that its valuation has since doubled, though specific figures were not disclosed.

Future Goals and Expansion Plans

“Achieving unicorn status is a natural progression if we effectively implement our AI development plan, expand into international markets, and create targeted interventions for specific health conditions,” stated Alexandra Zatarain, co-founder and CMO of Eight Sleep, in an interview with TechCrunch.

The Pod: A Smart Mattress System

Eight Sleep offers intelligent mattresses that combine software and artificial intelligence to track and optimize sleep. The company’s primary product, the Pod, provides features such as monitoring sleep stages, heart rate, breathing patterns, and body movement.

Based on this data, the Pod automatically adjusts temperature, elevation, and firmness levels. It can also detect snoring and respond by subtly raising the head of the bed, as per the company’s description.

Sales and Data Collection

To date, the company has generated over $500 million in Pod sales. Revenue has increased tenfold since the product’s launch in 2019, and Eight Sleep has accumulated data from more than one billion hours of recorded sleep.

Introducing Sleep Agent and AI-Driven Personalization

With a team of just over 100 employees, Eight Sleep is extending its product line beyond the Pod with the introduction of Sleep Agent. This AI-powered system utilizes large language models to generate thousands of digital twins for each user, predicting outcomes and aiming to optimize nightly recovery. This represents a shift from simply tracking sleep to providing proactive, individualized interventions, according to Zatarain.

Competitive Landscape

The sleep technology market includes numerous competitors. These range from wearable devices like those offered by Oura, Fitbit, and Apple, to medical companies such as ResMed, and manufacturers of smart mattresses and sleep surfaces, including Sleep Number and ChiliSleep.

Eight Sleep’s Unique Approach

Eight Sleep’s distinguishing feature, Autopilot, “creates a personalized profile from the very first night and continuously adapts, taking into account factors like the season, travel, stress, exercise, illness, or even a previous night’s sleep quality. Furthermore, it operates independently for each side of the bed,” Zatarain explained.

Expanding into Healthcare and Health Monitoring

The newly acquired funding will be used to accelerate growth within the healthcare sector, building upon the Pod’s existing health-monitoring capabilities. The Health Check feature allows the system to monitor cardiovascular and respiratory patterns with up to 99% accuracy, without requiring wearable devices, the company claims.

“We are not intended to replace a physician, but we provide nightly, highly accurate health monitoring, enabling early action if trends change. This data can supplement traditional medical care over time,” Zatarain stated.

Innovative Features and FDA Approval

Eight Sleep’s recently released Hot Flash Mode utilizes AI-driven cooling to alleviate symptoms associated with menopause. The company is also developing contactless solutions for sleep apnea and is pursuing FDA approval, intending to leverage the Pod’s real-time biometric monitoring to deliver personalized treatments.

Global Expansion and Data Privacy

Eight Sleep currently distributes its products to over 30 countries, including Canada, the U.K., EU nations, Australia, Mexico, and the UAE. The company is now planning to expand into the Chinese market.

The CMO noted to TechCrunch that China’s growing health-conscious middle class, prioritizing sleep and overall wellness, represents a significant consumer market.

Data Security and Compliance

Regarding the handling of sensitive health information, Zatarain emphasized the company’s adherence to local regulations regarding data storage. “Privacy is paramount. All data is encrypted, never sold, and remains fully private. We comply with GDPR and CCPA, and, unlike many devices, we do not utilize microphones. Our biometric sensors are integrated into the bed surface – no wearables, no invasiveness, just passive, high-accuracy insights,” Zatarain said.

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