New York, NY - Aug 19, 2025 - Eight Sleep, the pioneering sleep fitness company, today announced it has secured $100 million in new funding to accelerate its mission of transforming sleep through advanced AI and health-monitoring innovations. The investment will fuel international expansion, medical sector growth, and the development of condition-specific sleep interventions. With this round, Eight Sleep’s valuation has doubled since its last funding in 2021, positioning the company on the cusp of unicorn status. This milestone underscores the growing demand for technology that optimizes sleep as a cornerstone of health and performance.
Eight Sleep has raised $100 million in its Series D funding round. The round was backed by a mix of venture capital firms and high-profile individuals, including HSG, Valor Equity Partners, Founders Fund, and Y Combinator. Notable individual investors include Ferrari F1 driver Charles Leclerc and McLaren F1 CEO Zak Brown. This brings the company’s total funding to approximately $260 million. The valuation has reportedly doubled from the 2021 post-money valuation of $500 million, approaching $1 billion.
Strategic Goals and Use of Funds
The new capital will be strategically allocated across key areas to drive innovation and expansion. Below is an organized breakdown:
- Product Development and AI Enhancements: Invest in advancing the Sleep Agent AI system, which uses large language models to create personalized “digital twins” for sleep optimization. This includes refining features like Hot Flash Mode for menopause relief and pursuing FDA approval for contactless sleep apnea solutions.
- Health Monitoring Expansion: Accelerate growth in the medical sector by building on the Pod’s capabilities, such as Health Check for cardiovascular and respiratory monitoring with up to 99% accuracy, without wearables.
- International Launch and Market Growth: Support global expansion, including entry into new markets like China, while continuing to ship to over 30 countries.
- Condition-Specific Interventions: Develop targeted solutions for sleep-related health issues, leveraging over one billion hours of sleep data collected to date.
These initiatives aim to position Eight Sleep as a leader in “sleep fitness,” blending hardware, software, and AI for proactive health management.
Historical Funding and Growth
Eight Sleep has demonstrated consistent growth since its founding, with funding rounds reflecting increasing investor confidence in its sleep tech innovations. The company has expanded revenue tenfold since launching the Pod in 2019 and generated over $500 million in sales. Below is a table summarizing its funding history based on available data:
| Round | Date | Amount Raised | Lead Investors | Valuation (Post-Money) |
|---|---|---|---|---|
| Seed (Multiple) | 2015-2017 | ~$20M | Y Combinator, Khosla Ventures, others | N/A |
| Series A | March 2018 | $14M | Khosla Ventures | N/A |
| Series B | November 2019 | $40M | Founders Fund | N/A |
| Series C | August 2021 | $86M | Valor Equity Partners | $500M |
| Series D | August 2025 | $100M | HSG, Valor Equity Partners | ~$1B |
Note: Total funding to date is approximately $260M. Early seed rounds were aggregated for simplicity; exact breakdowns may vary slightly across sources.
Eight Sleep’s Technology
Eight Sleep’s flagship product, the Pod, is an AI-powered smart mattress cover that integrates advanced sensors to track sleep stages, heart rate, breathing, and movement without wearables. It automatically adjusts temperature (55° to 110°F), elevation, and firmness, and includes features like snoring detection with auto-elevation. The recently launched Sleep Agent uses AI to provide personalized sleep coaching, while Health Check offers clinical-grade monitoring. The technology emphasizes passive, non-invasive data collection, with all data encrypted and compliant with GDPR and CCPA for privacy.
Industry Impact and Challenges
Eight Sleep is disrupting the sleep tech industry by shifting from passive tracking to proactive interventions, impacting competitors like Oura, Fitbit, Apple, ResMed, Sleep Number, and ChiliSleep. Its Autopilot subscription model turns one-time hardware sales into recurring revenue, reporting 27% improvements in deep sleep for users. Challenges include navigating FDA approvals for medical features, ensuring data privacy amid growing concerns, and competing in a crowded market where differentiation relies on AI accuracy and user adoption.
Market Context and Industry Trends
The sleep tech market is booming, driven by rising awareness of sleep’s role in health, with the global sleep aids market projected to reach $100 billion by 2026. Trends include AI integration for personalized health insights, non-wearable monitoring, and expansion into wellness and medical applications. Eight Sleep capitalizes on this by positioning sleep as “fitness,” aligning with broader trends in preventive healthcare and performance optimization.
Stakeholder Perspectives
Investors and partners view Eight Sleep as a frontrunner in AI-driven health tech. Valor Equity Partners, a repeat investor, highlights the company’s potential in scaling sleep innovations. Athletes like Charles Leclerc emphasize its performance benefits, while medical experts see value in its monitoring accuracy complementing professional care.
Stakeholder Insights
Co-founder and CMO Alexandra Zatarain stated, “If we successfully execute our AI roadmap, launch internationally, and develop condition-specific interventions, achieving unicorn status will naturally follow.” She added, “We’re not replacing your doctor, but we are giving you nightly, high-accuracy health monitoring so you can act early if trends shift.” On privacy, Zatarain noted, “Privacy is foundational. All data is encrypted, never sold, and fully private.”
About Eight Sleep
Founded in 2014, Eight Sleep is a New York-based sleep fitness company dedicated to optimizing rest for peak health and performance. With over 100 full-time employees, it has been recognized as one of the Most Innovative Companies in 2019, 2022, and 2023, and its inventions awarded Best Inventions in 2018 and 2019. Backed by more than 50 clinical studies, Eight Sleep ships to over 30 countries and focuses on science-driven solutions for better sleep.
Future Outlook
Eight Sleep aims to achieve unicorn status through AI advancements and global reach. The company plans to pursue FDA clearances, expand into Asia, and develop more health interventions, potentially revolutionizing preventive care. With strong growth metrics and investor backing, Eight Sleep is poised to lead the sleep tech evolution.
Media Contact
For press inquiries, please contact press@eightsleep.com.
Source : Eight Sleep
