Eight Sleep Raises $86 Million to Scale Smart Sleep Technology

Eight Sleep – maker of smart mattress that monitors the sleep environment and vital signs through an app – closed an $86 million Series C funding round.

Valor Equity Partners led the funding round with SoftBank, Khosla Ventures, Founders Fund, and General Catalyst. Antonio Gracias, Valor’s Founder, CEO, and CIO, joined the Eight Sleep Board as part of the funding.

“The sleep tech market is only in its infancy. The opportunity is limitless, as we spend up to a third of our lives asleep. Consumers are increasingly focused on sleep fitness as the understanding of how deeply important sleep is to overall health becomes more widely known,” said Antonio Gracias. “The first night I slept on the Pod I knew we had to get involved. We’ve seen this in our portfolio many times – Eight Sleep’s products and technology are disrupting the sleep market, and its rapid innovation is outpacing the competition as it builds a new sleep fitness-focused category that delivers results.”

Eight Sleep has raised over $150 million to date, and the startup has confirmed that its valuation is now close to $500 million. The company plans to use the new funds to accelerate its innovation and technology roadmap and grow the size of the team.

“Our end goal is to develop the most sophisticated technologies for restorative and preventative health, and this round helps us invest in building the team that will develop the next-generation of Eight Sleep products,” said Matteo Franceschetti, Co-founder and CEO of Eight Sleep. “Beyond our successful solutions for thermoregulation, we’re working towards managing all of the factors that may disrupt users’ rest to ensure everyone can improve sleep fitness for better health, performance, and longevity.”

Eight Sleep has developed a smart sleep mattress using health-grade sensors. The mattress can detect your temperature, heartbeat, breathing, and heat or cool a bed accordingly.

That technology aims to help users squeeze in better quality rest in less time. According to Eight Sleep, if a person can improve their sleep efficiency by 25%, they don’t need eight hours of sleep.

Digital Health Sensors companies raised $675 million in the first half of 2021, according to the latest Mercom Digital Health Funding and M&A Report.