Eight Sleep raises $50M at $1.5B valuation

Eight Sleep, a sleep technology company specializing in smart mattress accessories that track sleep patterns and adjust temperatures, has raised $50 million in a strategic funding round led by Tether Investments, bringing its valuation to $1.5 billion. The company, backed by investors including HSG, Valor Equity Partners, Founders Fund, and Y Combinator, has raised over $310 million to date. Eight Sleep reported being free-cash-flow positive in 2025 and plans to use the new capital for product development, global expansion (currently shipping to over 34 countries), and clinical validation. Notably, the company is pursuing FDA approval for products aimed at detecting and mitigating sleep apnea, signaling a move beyond consumer products into health technology. CEO Matteo Franceschetti emphasized the company's vision to create a health technology system that learns from users’ bodies nightly and proactively optimizes sleep conditions. Eight Sleep is developing a sleep-focused AI agent designed to control mattress temperature, elevation, and firmness by simulating various scenarios