Eight Sleep raises $50M at $1.5B valuation

Sleep technology company Eight Sleep announced today that it has raised $50 million in a strategic funding round led by Tether Investments. The new investment brings the company’s valuation to $1.5 billion.

The company, which currently ships its products to 34 countries as part of its global expansion, reported that it was free-cash-flow positive in 2025. This latest strategic round builds on a deep funding history, bringing the total amount raised by Eight Sleep to over $310 million to date. The company’s previous capitalization details include:

• A $100 million round closed last August from previous investors including HSG, Valor Equity Partners, Founders Fund, and Y Combinator.
• An $86 million Series C round led by Valor Equity Partners in 2021, which valued the company at $500 million post-money.

Eight Sleep plans to use the new capital for new products, global expansions, and regulatory approval. Specifically, the company is seeking approval from the U.S. Food and Drug Administration (FDA) for products that can detect and 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,” said Matteo Franceschetti, co-founder and CEO of Eight Sleep.

The expansion into clinical and medical-grade technology follows past operational challenges. Last October, the company was involved in a controversy when users’ mattress accessories stopped working because of an AWS outage that prevented them from connecting to its servers. The beds overheated. In response to the Amazon Web Services (AWS) failure, the company added an “outage mode” to its products to handle server connectivity issues. As it navigates these technical hurdles, Eight Sleep continues to compete with BedJet and Chilipad on the mattress and temperature control front, as well as with Oura and Whoop in the sleep-tracking market.

Why it matters

Eight Sleep’s $1.5 billion valuation and free-cash-flow status highlight the maturation of the sleep tech sector as it pivots from consumer wellness to medical-grade health monitoring. By seeking regulatory approval, the company aims to transition from a hardware accessory provider into a regulated health technology platform.