Eight Sleep

Despite being vital to cognitive function, physical recovery, and overall health, sleep has traditionally received the least attention out of the pillars of health. Traditional mattresses and sleep solutions fail to take all of the nuances of personal sleep needs into account. In an age where consumers expect personalized, data-driven health improvements, that was especially true. 

Led by CEO Matteo Franceschetti, Eight Sleep is redefining the space with AI smart sleep technology that enables better sleep for peak performance. With its flagship product - the Pod - the company is blending a combination of personalized temperature regulation, biometrics tracking, and data driven, prescriptive sleep insights. Their goal is to improve the quality of your sleep through innovation, particularly for those looking to achieve peak levels of mental and physical performance. And that will resonate with a generation of health-focused, tech-savvy consumers that has outgrown traditional sleep products. After users link their Pod to the mobile application, their advanced sensors monitor and analyze users' sleep, including their heart rate, respiratory rate, and sleep stages. A software system using artificial intelligence analyzes the users' data, and then generates individual recommendations to improve their sleep. The Pod can then alter the mattress temperature dynamically throughout the night based on individual user preferences, the environment, and user biometrics. The Pod feels more like a personal sleep coaching system than a mattress, as it can even detect snoring and automatically adjust the mattress elevation. Their service also provides users with sleep reports and user specific recommendations to improve user performance.

Within the myriad of services offered by Eight Sleep, the star is undoubtedly the Pod 4 Ultra's Autopilot mode, as it can make timely temperature adjustments to the user's temperature and sleep position without user action. In doing so, the Pod can remove hazardous intrusions, such as overheating or snoring, without sacrificing comfort. The mobile application offers users wellness measurements, trend data, and features that coach the user to reach trending goals. The firm’s commitment to behavioral change is apparent through the negative reinforcement available to the user when displaying poor sleep habits and suggesting corrections. Membership with Eight Sleep also offers premium services, including longer period of warranty, advanced analytics, and priority support.

Their pricing approach leverages high-tech hardware coupled with premium subscription services. Its flagship offering, the Pod 4 Ultra, is priced between $3,000 and $4,000 (based on size and configuration), and is considered a premium offering in the sleep vertical. In addition to paying for the hardware, customers have the option of purchasing a membership plan ($15 to $20 per month) that - depending on the membership tier - unlocks advanced sleep features like Autopilot (AI-based temperature adjustments), health insights, and priority customer service. Their dual revenue streams hardware sales & ongoing subscription revenue has enabled it to maintain solid gross margins and achieve profitability on a per-customer basis. 

Eight Sleep has experienced tremendous growth over the past few years. In 2023 its revenue was approximately $250 million and was projected to be approximately $350 million in 2024 aided by the strong product & subscription sales. Most of its revenue is directly from product sales and premium subscriptions. The company has raised $161.4 million in total funding, with an extremely large $86 million Series C funding round led by Valor Equity Partners announced in August 2021. Other notables funds include SoftBank, Khosla Ventures, Founders Fund, and General Catalyst. In 2025, Eight Sleep is valued around $1.2 billion, all in a growing sleep technology space where they are the most well-known company. Currently, the firm employs between 100 to 250 people and is located in New York City. However, it has also expanded and now is able to ship to the United States (but not Alaska, Hawaii, Puerto Rico and other U.S. territories), the European Union (but not Cyprus, Greece or Malta), Canada, the United Kingdom, Australia, Mexico, Switzerland, Monaco and the United Arab Emirates (UAE). Eight Sleep will continue to expand to other GCC countries throughout 2025, while UAE and KSA are still priority markets. The company has achieved best-in-class gross margins, and has technically been free cash. flow positive, with more than double-digit contribution margins meaning they are able to make money on each customer, right away, before high-margin subscription revenue even kicks in.

Competitors in this sleep and wellness tech category, like Sleep Number, Oura Ring, and WHOOP, are gaining momentum. That said, Eight Sleep is well positioned due to its in-depth hardware/software integration and has built its value around physiological performance. While competitors may have shared elements like temperature control functionality or sleep tracking, their real strength is simply offering a cohesive/entire experience and experience that has scientific credibility and an elegant, simple user experience. Additionally, it has steered clear of hidden fees for a lower price and focused on offering great memberships vs. pricing based solely on the markup of each individual product.

Looking to the future, Eight Sleep wants to explore integration/partnerships with other health tech ecosystems to create a connected sleep and wellness platform. "We believe sleep is the ultimate performance enhancer. Our mission is to unlock human potential through optimal sleep." CEO Matteo Franceschetti. With its intelligent take on sleep technology, the company is perfectly positioned to lead the smart sleep revolution. There continues to be an ever-expanding recognition of rest/wellness/chance to recharge as a quintessential aspect of wellness, sustainability and productivity, and Eight Sleep will become synonymous with these traits and increasing brand value in consumers' collection. Built by great engineering teams, investors and a growing user base, Eight Sleep will continue its innovation to sustain its upward momentum for years to come. Already a unicorn, it appears it's ultimately set to move/propel the future of sleep as we know it.

Click here to access Eight Sleep's website.