Eight Sleep Secures $100 Million Series D, Doubles Valuation Towards Unicorn Status

New York-based sleep technology innovator Eight Sleep has successfully closed a $100 million Series D funding round, propelling the company closer to a $1 billion "unicorn" valuation. The significant investment, announced on August 19, 2025, underscores growing confidence in AI-powered solutions for sleep optimization and preventive health. This funding round follows a congratulatory tweet from Y Combinator, acknowledging the company's latest financial milestone.

The funding round was led by HSG, with participation from existing investors Valor Equity Partners, Founders Fund, and Y Combinator. Notable individual investors also joined, including Ferrari F1 driver Charles Leclerc and McLaren F1 CEO Zak Brown, highlighting the intersection of high performance and advanced recovery technology. This latest capital infusion brings Eight Sleep's total funding to approximately $260 million.

Eight Sleep's valuation has reportedly doubled since its $500 million post-money valuation from its 2021 Series C round. Co-founder and CMO Alexandra Zatarain indicated the company is "approaching unicorn territory," stating that achieving this status would naturally follow the successful execution of their AI roadmap, international expansion, and development of condition-specific interventions. The company has generated over $500 million in sales from its Pod products and expanded revenue tenfold since 2019.

The new capital will be strategically deployed to accelerate Eight Sleep's growth in the medical sector, leveraging its Pod system's health-monitoring capabilities. The company plans to advance its AI-driven Sleep Agent, develop solutions for conditions like menopause and sleep apnea, and pursue FDA approval for certain medical applications. "We’re not replacing your doctor, but we are giving you nightly, high-accuracy health monitoring so you can act early if trends shift," Zatarain explained.

Eight Sleep's flagship product, the Pod, is a smart mattress cover that integrates software and AI to track sleep stages, heart rate, breathing, and movement, automatically adjusting temperature and firmness. The company's focus on proactive, personalized interventions differentiates it in a competitive market that includes wearables like Oura and Apple, as well as other smart bed manufacturers. Eight Sleep currently ships to over 30 countries and plans to expand into new markets, including China.