In recent months, the sleep tech arena has seen major momentum as startups at the intersection of AI, neuroscience, and athletic performance draw fresh capital. Two standout players—Somnee and Eight Sleep—have raised significant funding to expand their offerings and help athletes (and everyone) achieve better recovery through sleep optimization.
1. Somnee: Neuro-Powered Sleep Headband Gets $10M Boost
Funding & Investors
In June 2025, Somnee — co-founded by Dr. Matt Walker, a sleep neuroscientist from UC Berkeley — raised $10 million in a seed extension round. The investment was led by Khosla Ventures, with participation from TIME Ventures (Marc Benioff), Lead VC (Adidas family), the Orlando Magic ownership (NBA), Seaside Ventures, Nelstone Ventures, and Metalab.
Technology & Therapeutic Impact
Somnee’s signature product is a noninvasive, AI-powered headband that uses EEG sensors and machine learning to stimulate brain waves naturally—helping users fall asleep twice as fast, stay asleep 30+ minutes longer, and reduce tossing and turning by about one-third. Clinical comparisons show it outperforms melatonin (by four times), CBT-I (two times), and Ambien (1.5 times).
Athletic Connections
Somnee is currently in beta pilots with various NBA teams and their performance staff, through the league’s Launchpad program focused on athlete health technologies.
2. Eight Sleep: $100M Series D Fuels AI, Medical Push, and Athlete Outreach
Series D Funding Details
In August 2025, Eight Sleep raised $100 million in a Series D round backed by HSG (formerly Sequoia Capital China), Valor Equity Partners, Founders Fund, Y Combinator, plus sports figures such as F1 driver Charles Leclerc and McLaren’s Zak Brown.
AI-Driven Innovation
The funding will accelerate development of a proprietary Sleep Agent, an AI that creates multiple "digital twins" of users to predict optimal sleep environments and proactively adjust temperature, elevation, and routines each night.
Connecting with Athletes
The company already counts elite athletes—including Charles Leclerc, Aaron Judge, Brock Purdy, and Taylor Fritz—as ambassadors and investors. It has rolled out partnerships like the Miami Women’s Padel League, providing Pod systems to athletes to emphasize the role of sleep in performance and recovery.
Market Reach & Sales
With over $500 million in Pod sales since 2019 and a tenfold revenue increase, Eight Sleep is moving rapidly into showrooms and new markets like China, expanding beyond its current footprint across 30+ countries.
3. What This Means for Athletes and Sleep Tech
Company Funding Raised Tech Focus Athletic Integration:
Somnee $10 million EEG + AI headband stimulation NBA pilots in Launchpad program.
Eight Sleep $100 million AI-powered bedding (Pod + Agent) Athlete ambassadors, performance leagues.
Deeper Sleep = Better Recovery.
Both startups aim to move beyond sleep tracking toward active, personalized intervention—a game-changer for athlete recovery and performance.