Sleep 8 raises $50M for $1.5B valuation

Sleep tech company Sleeping Five Times today announced that it has raised $50 million in a round led by Tether Investments at a cost of $1.5 billion. This new round comes after the start closed a $100 million round last August from investors such as HSG, Valor Equity Partners, Founders Fund, and Y Combinator.

The startup, which sells smart mattress devices that can monitor how you sleep and adjust the temperature while you sleep, didn’t share the price of its previous competitors, but it was a bargain. $500 million after funding in 2021 when it raised $86 million Series C led by Valor Equity Partners. The company has raised more than $310 million to date, according to Crunchbase.

Eight Sleep said it was cash flow positive in 2025, and plans to use the new funds for new products, global expansion, and clinical validation. The company currently exports its products to more than 34 countries.

The company said it wants to expand beyond selling consumer products, and has applied for approval from the US Food and Drug Administration to find products that can detect and reduce seizures.

“What we’re building doesn’t exist yet – a system that better understands your body every night and takes action on that knowledge. Our goal is to build the leading 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-monitoring AI that monitors the temperature, humidity and intensity of its products and prevents sleep disturbances. It said that the assistant takes into account many of the activities of the users before going to sleep and prepares its products for a good sleep.

Eight Sleep said that its models are trained on the owner’s data, and the first pilots of its AI-driven recommendations have made it possible for people to change their habits, such as when they exercise, consume caffeine or sleep, based on the analysis provided by the program.

Last year, the company was established hydro blanket which conducts heat, and a new pillow a cover that can provide warmth for the head and neck.

Sleep 8 found itself in controversy last October when users’ mattress devices stopped working due to The AWS update as he could not connect to his servers. The beds are heated, and the company had to add “off mode” for his things in that regard.

Eight Sleep competes with the likes of BedJet and Chillpad for mattresses and temperature controls, as well as Oura and Whoop in the sleep tracking market.