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Eight Sleep, Inc.
Eight Sleep sells high-tech mattresses and mattress covers that heat and cool themselves to help people sleep better.
Eight Sleep makes a smart bed system โ a mattress with a built-in cover that runs hot or cold water through tiny channels to keep each side of the bed at the temperature you want. It also tracks your sleep and adjusts the temperature through the night. Think of it as a climate-control system for your bed, like air conditioning but for your side of the mattress, with a subscription-style twist.
The company sells mainly to everyday consumers โ people who care about sleep and are willing to pay up for it. The hardware is the big money-maker: the mattress itself, the cooling cover, and the hub that powers it, sold as a bundle that costs thousands of dollars. Eight Sleep also sells an optional subscription that unlocks software features like detailed sleep tracking, autopilot temperature changes, and health insights. So it's a hardware company that is layering software revenue on top.
Eight Sleep is a private, venture-backed company based in New York, founded in 2014. It has become known for selling to a high-end, tech-savvy crowd โ including athletes and celebrities โ and has raised significant venture money to grow. The bet is that sleep is the next big wellness market, and that people will pay a premium for a bed that acts more like a gadget than furniture, then keep paying for the software that makes it smarter.
Saved answer ยท last researched 17 Oct 2026
BIG PICTURE
Eight Sleep got $15 billion of investor faith before most people had even heard of a smart mattress
- 15% Valuation placed on Eight Sleep
- 85% Not applicable
In March 2026, investors valued Eight Sleep at $15 billion after a funding round led by crypto giant Tether, a big jump from the roughly $500 million valuation reported earlier. That money rests on a simple bet: people will keep paying a yearly fee, around $199 to $399, to unlock the cooling and heating features of a mattress cover. Source: ้ญ็ ๅ ฌ็คพ, data from 2026
Timeline
A Bed That Watches Your Health
Alexandra Zatarain watched cancer steal her father's sleep, and not long after he died she started Eight Sleep with Matteo Franceschetti and a few others. Franceschetti was an athlete whose own sleep was a mess, and he kept wondering why nobody measured the hours his body spent recovering. The founders' idea was a bed that catches health problems early, because sleep is where the body first signals that something is wrong.
Crowdfunding Before the Product Existed
Soon after, the team put the idea on Indiegogo and raised more than a million dollars from about 8,000 people who ordered a product that did not exist yet. The team had been rejected twice by Y Combinator but got into its summer batch that year. That early rush of buyers proved people wanted this and gave the company the push to actually build the hardware.
A Half-Billion-Dollar Valuation
A few years later, Eight Sleep raised $86 million from investors including Valor Equity Partners, SoftBank and Founders Fund, valuing the company at close to half a billion dollars. The money went toward expanding abroad and funding research.
Buying a Health Coaching Company
The next year, Eight Sleep bought Span Health, a small company founded back in 2016 that used data to coach people on their health. Span's leaders joined the product team. The deal stretched Eight Sleep beyond the bed itself, into personalized health coaching.
The Subscription Arrives
Then came a change that annoyed a lot of customers: Eight Sleep started charging $180 to $288 a year for most of the Pod's features. Even basic things like sleep tracking and temperature control now sat behind the paywall. It was a deliberate turn toward recurring revenue on top of selling hardware.
The Night the Cloud Went Down
That reliance on the company's servers came back to bite. An outage at Amazon's cloud service left Eight Sleep mattresses overheating or unable to cool at all. CEO Matteo Franceschetti apologized and promised an offline mode, but as of early the following year it still had not shipped, showing how much the beds lean on the cloud.
Tether Bets on Preventative Health
Tether Investments then led a $50 million round that valued Eight Sleep at $1.5 billion. The money funds a bigger ambition: moving from optimizing sleep to predicting and preventing health problems with AI. The company is now chasing FDA filings for detecting and easing sleep apnea, aiming to become a regulated health platform, and it turned free-cash-flow positive along the way.