Eight Sleep Adds $86M in Series C Funding

Smart mattress maker Eight Sleep secured $86M in Series C funding.

Lead investor Valor Equity Partners was joined by SoftBank, Khosla Ventures, Founders Fund, and General Catalyst.

The company has raised more than $150M to date, including backing from celebrity and athlete investors like former MLB star Alex Rodriguez and actor/comedian Kevin Hart.

Sleep Tech 

Billed as the first “sleep fitness” company, Eight Sleep uses technology to improve sleep performance.

The company’s primary product is a souped-up mattress known as the Pod. Utilizing health-grade sensors and AI models, the mattress monitors and adapts the sleep environment based on each user’s sleep patterns and temperature preferences.

On the Fitt Insider podcast, Eight Sleep CEO Matteo Franceschetti said his company is focused on developing the most sophisticated sleep technology on Earth.

To that end, the smart bed maker recently debuted SleepOS, an operating system for personalized sleep optimization. Looking ahead, Franceschetti thinks it’s possible to improve sleep efficiency so much that eight hours of shut-eye is unnecessary, adding:

“Beyond our successful solutions for thermoregulation, we’re working towards managing all of the factors that may disrupt users’ rest to ensure everyone can improve sleep fitness for better health, performance, and longevity.”

The Sleep Economy 

In Issue No. 67, The Future of Sleep, we look at our less-than-stellar sleep habits and the growing list of solutions for better zzz’s.

• One-third of US adults don’t get enough sleep.
• Lack of sleep costs US businesses $411B each year.
• Sleeping six hours or fewer results in a 13% higher mortality rate.

Now, as concerns related to burnout, immune health, and mental wellness grow, sleep is emerging as a billion-dollar pillar of the wellness economy.

• In January, smart bed maker Bryte landed $24M in funding.
• Last year, ChiliSleep parent Kryo merged with Ebb Therapeutics, adding $37M in funding.
• Sleep tracking smart ring Oura raised $100M in funding this spring while WHOOP recently secured $200M for its wrist-worn device.

Elsewhere, Big Tech wants to watch you sleep. Google and Amazon plan to introduce radar-powered sleep monitoring devices, while Apple relies on its smartwatch and Beddit’s technology, an under-the-mattress sleep tracker it acquired in 2017.

Looking ahead: Unlike other nice-to-have healthy habits like exercise or meditation, we have to sleep. In a category where everyone falls into the addressable market, don’t expect sleep startups to lose steam anytime soon.