Sleep tech company Eight Sleep announced today that it has secured $50 million in a strategic round led by Tether Investments, reaching a valuation of $1.5 billion. This follows the startup’s $100 million funding round last August, with participation from HSG, Valor Equity Partners, Founders Fund, and Y Combinator.
The company, known for smart mattress accessories that monitor sleep patterns and adjust temperatures, did not reveal its valuation for the previous round. It was previously valued at $500 million post-money in 2021 after raising $86 million in a Series C led by Valor Equity Partners. According to Crunchbase, Eight Sleep has raised over $310 million in total.
In 2025, Eight Sleep reported being free-cash-flow positive and aims to utilize the new funding for product innovation, global expansion, and clinical validation. Their products are currently available in more than 34 countries.
Eight Sleep plans to expand beyond consumer products and is seeking FDA approval for equipment to detect and manage sleep apnea.
“We are creating something unprecedented—a system that gains a better understanding of your body each night and utilizes that information. Our ambition is to become the defining health technology company of our generation,” stated Matteo Franceschetti, co-founder and CEO of Eight Sleep.
The company is focusing on developing a sleep-centric AI agent that will autonomously adjust product temperature, elevation, and firmness to prevent sleep disruption. This agent will simulate various scenarios before bedtime to optimize sleep conditions.
Eight Sleep’s AI-driven guidance models are trained on proprietary data and have led users to alter habits like exercise timing, caffeine consumption, and sleep schedules based on app analysis.
Last year, Eight Sleep introduced a hydro blanket for temperature control and a new pillow cover for head and neck temperature regulation.
In October, the company faced controversy when an AWS outage disrupted users’ mattress accessories, causing overheating as they failed to connect to servers. Eight Sleep subsequently introduced an “outage mode” for such incidents.
Eight Sleep competes with companies like BedJet and Chillpad in mattress and temperature control, and with Oura and Whoop in sleep tracking.