Eight Sleep, a startup developing “sleep fitness” products, announced Tuesday that it has raised $100 million in a new funding round.
Led by HSG, the Series D also got some participation from Valor Equity Partners, Founders Fund, Y Combinator and a number of sports figures, including Ferrari F1 driver Charles Leclerc and McLaren Racing CEO Zak Brown. Other backers include Khosla Ventures, SoftBank and actor Kevin Hart. The capital infusion brings the New York-based startup’s total funding to over $260 million, per Crunchbase data.
Eight Sleep declined to reveal its valuation, but it was valued at approximately $500 million at the time of its last raise — an $86 million Series C round announced in August 2021.
“We’re focused on growth, global expansion and the medical space,” Matteo Franceschetti, CEO and co-founder, told Crunchbase News. “If we execute on our AI roadmap, international launches and condition-specific interventions, unicorn status will follow naturally.”
Founded in 2014, Eight Sleep describes itself as a “sleep‑fitness company” that combines technology, physiology and data “to unlock deeper sleep and better health.”
The company started out selling a smart mattress, or Pod, that uses embedded sensors to collect data and study trends about how people sleep. One could say the company was ahead of its time — in 2018, it launched an AI-powered sleep coach that tells users things like: “Last night, you slept 40 minutes less than your average this month” or “This week, your REM sleep is lower than average. Try going to bed 30 minutes earlier tonight.”
“Unlike others in the space, we don’t just sell a bed,” said Alexandra Zatarain, co-founder and VP of marketing.
The Pod does things like adjust elevation, sound and wake-up in real time based on a person’s needs, she said. It does that in part with the help of a smart bed cover with features such as an automatic temperature adjustment.
“We also passively monitor key health metrics with clinical-grade accuracy, without requiring you to wear anything,” Zatarain added.
Over time, Eight Sleep has continued to expand its offerings. Today, the company also sells a software membership attached to its Pod. And, it’s built a number of products aimed at offering “different solutions to different sleep problems.” For example, earlier this year, it introduced its first in a line of supplements developed with Dr. Peter Attia, co-founder and chief medical officer of Biograph, which are designed to help people sleep better without prescription medications.
While Eight Sleep declined to reveal hard revenue figures, its founders said its revenue has grown 10x since 2020, with its Pod generating over $500 million in revenue to date. It also says the company was free cash flow positive in first half of 2025.
Looking ahead
With customers in over 30 countries including Australia, the United Kingdom, Australia, Mexico and the United Arab Emirates, Eight Sleep is now eyeing the China and Singapore markets.
Eight Sleep also plans to use its funding “to supercharge” AI roadmap, starting with the development of a sleep agent that interprets biometric data and simulates thousands of digital twins per user, allowing it to predict outcomes through advanced modeling.
The agent then, the company claims, “intelligently” adjusts variables like temperature, elevation, and bedtime routines to optimize recovery on a nightly basis.
This builds on the company’s existing Autopilot feature, which the company says makes “millions” of nightly adjustments based on user behavior and biofeedback.
The funding will also support Eight Sleep’s entry into the medical space. Building on the Pod’s health‑monitoring capabilities, which track cardiovascular and respiratory patterns, the company said it is developing AI-powered solutions for medical sleep challenges, starting with menopausal sleep and sleep apnea. It is also targeting FDA approval for certain applications.
Presently, Eight Sleep has just over 100 full-time employees, a number it plans to grow with its new capital.
Eight Sleep is not the only sleep-focused company to raise capital as of late. Over the past couple of years, investors have poured hundreds of millions of dollars into an array of companies working on treatments for sleep-related ailments and technology to help improve sleep quality. Oura, maker of the popular wearable rings that record and analyze biometric data, is the largest investment recipient in this area. It’s raised $348 million in equity funding to date, including a $200 million November Series D.
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Illustration: Dom Guzman
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