AI + Sleep Tech: Eight Sleep Raises Another $50M, Valuation Reaches $1.5B
Sleep health company Eight Sleep has completed a new $50 million funding round, led by Tether Investments, with participation from HSG, Valor Equity Partners, Founders Fund, and Y Combinator. The post-money valuation reached $1.5 billion, with cumulative funding totaling $310 million. This round comes just six months after the previous one.
Eight Sleep revealed that the company achieved positive free cash flow in 2025.
Eight Sleep's core product is the AI-powered smart mattress Pod, which features built-in sensors that monitor physiological data such as body temperature and heart rate in real time, dynamically adjusting mattress parameters to optimize sleep quality and even provide early warnings for cardiovascular and respiratory abnormalities.
Eight Sleep completed an $86 million Series C round in 2021 at a valuation of $500 million. In August 2025, it secured an additional $100 million investment from institutions including Sequoia Capital China, doubling its valuation compared to the previous round. At that time, data showed that its smart mattress sales exceeded $500 million, with revenue growing 10 times compared to 2019. Products have been sold to 34 countries worldwide, with users including Silicon Valley entrepreneurs like Elon Musk and Mark Zuckerberg, as well as numerous athletes.
According to the official website, world No. 1 men's tennis player Taylor Fritz and Ferrari F1 driver Charles Leclerc became investors and brand ambassadors for Eight Sleep in 2024 and 2025, respectively.
Above: Tennis player Fritz
Above: Ferrari F1 driver Leclerc
Eight Sleep was founded in New York in 2014. The founding team includes three Italians:
- CEO Matteo Franceschetti: Former lawyer who founded two clean tech companies and holds several patents in technology and health;
- CTO Massimo Andreasi Bassi: Former senior software engineer at a data consulting firm;
- Senior Vice President of Brand and Marketing Alexandra Zatarain: Matteo's wife, with a background in PR and finance;
- Andrea Ballarini: Left in 2017 to move into real estate.
Above from left to right: Massimo Andreasi Bassi, Matteo Franceschetti, and Alexandra Zatarain
This round of funding will be used for new product development, global expansion, and clinical validation. Eight Sleep will integrate with investor Tether's QVAC Health platform, which aggregates multi-source health data from wearables and health logs, driving collaboration to develop personalized AI health solutions.
Upon the completion of the funding round, co-founder and CEO Matteo Franceschetti said: "Sleep is just the starting point; we are building the world's largest health technology company together." It is reported that Eight Sleep has submitted product applications to the U.S. Food and Drug Administration (FDA) to expand into the medical health field.
In December 2025, Eight Sleep made its debut in China at the Shanghai Don't Die Summit, simultaneously launching accounts on Xiaohongshu and WeChat Official Account, introducing a founding member program, and offering early access to overseas products. Recent official accounts revealed that the product is "coming to China soon".
｜Sources: Official press release, Crunchbase News, Luxurynsight historical reports
｜Image sources: Eight Sleep official website, official Xiaohongshu account