Sleep tech company Eight Sleep secures $50M funding at $1.5B valuation

Sleep technology startup Eight Sleep said today it has raised $50 million in a strategic funding round led by Tether Investments, valuing the company at $1.5 billion. The latest financing follows a $100 million round the startup closed last August with participation from investors including HSG, Valour Equity Partners, Founders Fund, and Y Combinator.

Eight Sleep, which sells smart mattress accessories that track sleep patterns and adjust temperature throughout the night, did not disclose the valuation for its previous round. However, the company was valued at $500 million post-money in 2021, when it raised an $86 million Series C round led by Valour Equity Partners. According to Crunchbase, Eight Sleep has now raised more than $310 million in total.

The company said it became free-cash-flow positive in 2025 and plans to use the fresh funding to support new product development, international expansion, and clinical validation efforts. Eight Sleep currently ships its products to more than 34 countries.

Eight Sleep also said it wants to expand beyond consumer hardware and has pursued approval from the U.S. Food and Drug Administration for products that could detect and help mitigate sleep apnea.

“What we’re building doesn’t exist yet — a system that understands your body better each night and acts on that knowledge. Our goal is to build 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 is also working on building a sleep-focused AI agent to proactively control the temperature, elevation, and firmness of its products to reduce sleep disruption. According to Eight Sleep, the agent runs simulations across many scenarios before users even get into bed, preparing the system for better sleep conditions.

Eight Sleep said its models are trained on proprietary data, and that early pilots of its AI-driven guidance have led users to change behaviours such as exercise timing, caffeine consumption, and sleep schedules based on recommendations surfaced by the app.

Last year, the startup introduced a hydro blanket designed to regulate temperature, along with a new pillow cover that can control temperature around the head and neck.

Eight Sleep also found itself at the centre of controversy last October after users’ mattress accessories stopped working during an AWS outage that blocked connections to the company’s servers. As a result, some beds overheated, prompting the company to add an “outage mode” to its products to handle similar situations in the future.

Eight Sleep competes with companies such as BedJet and Chilipad in the mattress and temperature-control category, and with Oura and Whoop in the broader sleep-tracking market.