Eight Sleep looks to expand smart bed business with $40M investment

Founders Fund led the round, which will help the sleep tracking company expand its team and support R&D.
By Dave Muoio
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Data-driven smart bed maker Eight Sleep (formerly known as Luna) has raised $40 million in its latest investment round, announced Wednesday. The funding was headed by Founders Fund, and included support from Craft Ventures, Khosla Ventures, Y Combinator, 8VC, Flexport’s Ryan Petersen and Eventbrite’s Kevin Hartz.

Alongside its prior rounds, this week’s news brings the company to a total raise of nearly $65 million.

WHAT THEY DO

Launched in 2015, Eight is known for its line of sleep-tracking beds, mattresses and mattress toppers. Paired with a smartphone app, the mattresses monitor various sleep factors such as heart rate or respiratory rate to discern patterns in the users’ sleeping habits. These products — in particular the company’s premium $2.295 offering, “the Pod” — may also include a range of other features such as temperature control, smart alarms and smart-home integrations. Meanwhile, users’ longitudinal sleep trends and a quantified “Sleep Fitness Score” are available for review within the paired app, alongside mindfulness and relaxation features.

WHAT IT’S FOR

"We are building a brand that optimizes sleep through technology, data and insights. This round of financing is a testament to our momentum and will enable us to continue to evolve the Pod, bring more products to market and build the sleep fitness category," Matteo Franceschetti, cofounder and CEO of Eight Sleep, said in a statement. "With this new round of funding, we will focus on growth by doubling the team, expanding our retail footprint, and reinforcing our investment in R&D. Our product roadmap will define the future of sleep in a matter of a few years.”

MARKET SNAPSHOT

Sleep health has long been a focus for digital health and wellness players, both from a consumer and enterprise perspective. The former has led to sleep tracking features embedded within popular wearables (with the notable exception of Apple Watches), to employers offering programs focused on encouraging better sleep with trackers and coaching. And investors have taken notice — just a month ago, Sleep Data raised $6 million for its offering while Omara Health brought in $.93 million in April.

ON THE RECORD

“We all spend ideally a third of our lives sleeping, yet every startup selling mattresses is just innovating on the business model, not on the quality of the sleep they provide,” Trae Stephen, a partner at Founders Fund who is joining Eight Sleep’s board of directors, said in a statement. “Eight Sleep’s thermodynamic solution to regulate your body temperature to enhance sleep is a complete game-changer.”