Sleep technology company Eight sleep said today that it raised $50 million in a strategic round led by Tether Investments at a $1.5 billion valuation. This new round comes after the startup closed a $100 million round last August from investors including HSG, Valor Equity Partners, Founders Fund and Y Combinator.
The startup, which sells smart mattress accessories that can track your sleep habits and adjust temperatures as you sleep, did not disclose its valuation for the previous round, but was valued at $500 million after money in 2021 when it raised an $86 million Series C round led by Valor Equity Partners. The company has raised over $310 million to date, according to Crunchbase.
Eight Sleep said it was free cash flow positive in 2025 and plans to use the new funding for new products, global expansions and clinical validation. It currently ships its products to more than 34 countries.
The company has said it wants to expand beyond selling consumer products and has sought approval from the US Food and Drug Administration for products that can detect and mitigate sleep apnea.
“What we’re building doesn’t exist yet—a system that understands your body better every night and acts on that knowledge. Our goal is to create the defining health technology company of this generation,” Matteo Franceschetti, co-founder and CEO of Eight Sleep, said in a statement.
The company said it wants to work on a sleep-focused artificial intelligence agent that proactively controls the temperature, elevation and stability of its products and prevents sleep disruption. He said the agent simulates several scenarios before users fall into bed and primes its products for optimal sleep.
Eight Sleep said its models are trained on proprietary data, and early pilots of its AI-driven guidance resulted in people changing their habits, such as exercise time, caffeine intake or sleep patterns, based on analysis provided by the app.
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Last year, the company launched hydraulic blanket which controls the temperature and a new pillow cover that can provide temperature control for the head and neck.
Eight Sleep was embroiled in controversy last October when users’ mattress accessories stopped working due to an AWS outage that prevented them from connecting to its servers. The beds overheated, and so did the company should have added a “shutdown function” in its products for such situations.
Eight Sleep competes with the likes of BedJet and Chilipad on the mattress and temperature control front, and with Oura and Whoop in the sleep tracking market.
