Eight Sleep, a startup developing sleep technology products, announced Wednesday that it has raised $50 million at a $1.5 billion valuation.
Tether Investments led the “strategic” investment in the New York-based startup, which has now raised more than $250 million in total funding.
Eight Sleep raised $100 million last August, so this financing marks its second round in a year’s time. At the time of that raise, the company was valued at $1 billion, up from its approximately $500 million valuation at the time of its $86 million Series C round in August 2021.
Founded in 2014, Eight Sleep describes itself as a “sleep technology” 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 to 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.”
The new capital will fund its expansion from sleep optimization into “predictive, AI-driven health,” it said.
Executives described 2025 as a “milestone” year in which Eight Sleep achieved free cash flow positivity and launched three new products: Pod 5, Pod Pillow Cover and Thermal Blanket.
“Sleep was just the beginning,” said Matteo Franceschetti, co-founder and CEO of Eight Sleep, in a release. “We’ve built the most advanced AI-powered health sensing system in the world — one that learns your body better every night and acts on that knowledge. This investment gives us the resources to take that intelligence beyond the bedroom and into every dimension of personal health. … Our goal is to build the defining health technology company of this generation.”
Eight Sleep is not the only sleep-focused company to raise capital lately. Over the past few years, investors have poured hundreds of millions 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 $1.25 billion in equity funding to date, including a $900 million Series E at an $11 billion valuation in October 2025.
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Illustration: Dom Guzman
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