Somnee Secures $10M in Funding, Advancing AI-Powered Sleep Technology

Somnee, a neuroscience-based sleep technology company, has raised $10 million in a seed extension round led by Khosla Ventures. The funding will support the launch of the company's second-generation sleep tech wearable device, which utilizes artificial intelligence to improve sleep quality.

Innovative Sleep Technology Attracts High-Profile Investors

The funding round saw participation from notable investors, including Marc Benioff's TIME Ventures, LEAD VC (founded by the Adidas family), and the NBA's Orlando Magic ownership group. This diverse group of backers underscores the growing interest in sleep technology across various sectors, from tech to sports.

Somnee's proprietary technology centers around an AI-powered headband that uses electroencephalogram (EEG+) to map brain activity and deliver personalized stimulation. The company claims this approach can help users fall asleep faster and maintain higher quality sleep for longer periods.

Clinical Efficacy and Technological Advancements

According to published studies, Somnee's technology has demonstrated significant improvements in sleep metrics:

• Users fall asleep twice as fast
• Sleep duration increased by over 30 minutes
• Tossing and turning reduced by a third

The company reports that its solution outperforms traditional sleep aids, including melatonin, cognitive behavioral therapy for insomnia, and prescription medications like Ambien.

Somnee's upcoming second-generation device will feature the SmartSleep AI operating system, enabling real-time monitoring and AI-powered interventions throughout the sleep cycle. The product is currently undergoing beta testing with select NBA teams and their performance training staffs.

Expanding Partnerships and Industry Recognition

As sleep technology gains traction in the healthcare and wellness sectors, Somnee is exploring additional partnerships with professional sports organizations, employers, and healthcare brands. The company's efforts to link sleep quality with athletic performance, employee productivity, and human longevity have garnered attention from various industries.

Somnee's innovative approach has earned it several accolades, including selection for the NBA's 2025 Launchpad program and recognition from GQ Fitness Awards, Men's Journal, the Digital Health Hub Foundation Awards, and Fast Company's Next Big Things in Tech.

Tim Rosa, former Fitbit executive and current CEO of Somnee, has been instrumental in the company's recent developments, including relocating manufacturing out of China and expanding teams in Berkeley and India.

As the $91.4 billion sleep aid market continues to evolve, Somnee and similar startups are leveraging technology, neuroscience, and AI to address the widespread issue of sleep disorders, which affect an estimated 50 million to 70 million Americans.