Sleep Tech Startup Somnee Secures $10M in Seed Extension Round, Backed by High-Profile Investors

Somnee, a neuroscience-based sleep technology company, has raised $10 million in a seed extension round, attracting investments from prominent venture capital firms and sports industry figures. The funding will support the launch of the company's second-generation sleep tech wearable device, which uses artificial intelligence to improve sleep quality.

Investment Details and Notable Backers

The funding round was led by Khosla Ventures, with participation from several high-profile investors, including:

• Marc Benioff's TIME Ventures
• LEAD VC (founded by the Adidas family)
• The NBA's Orlando Magic ownership group (DeVos family)
• Seaside Ventures
• Nelstone Ventures
• Metalab

Vinod Khosla, founder of Khosla Ventures, emphasized the importance of sleep as a "longevity drug" and praised Somnee's non-invasive approach to improving sleep quality.

Somnee's Technology and Clinical Efficacy

Founded in 2022 by sleep expert Matt Walker, Ph.D., and a team of scientists from the University of California, Berkeley, Somnee has developed an AI-powered headband designed to enhance sleep quality. The device utilizes proprietary electroencephalogram (EEG+) technology and artificial intelligence to:

1. Map individual brain activity
2. Deliver personalized stimulation to guide the brain into its natural sleep state

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

• Users fall asleep twice as fast
• Sleep duration increases by over 30 minutes
• Tossing and turning is reduced by one-third

The company claims its solution outperforms traditional sleep aids, including melatonin (by four times), cognitive behavioral therapy for insomnia (by two times), and Ambien (by one-and-a-half times).

Industry Recognition and Future Plans

Somnee has gained recognition within the sports and technology sectors:

• Selected for the NBA's 2025 Launchpad program
• Won best sleep technology awards from GQ Fitness Awards, Men's Journal, the Digital Health Hub Foundation Awards, and Fast Company's Next Big Things in Tech

The company is currently conducting beta pilots with select NBA teams and their performance training staffs. Somnee plans to explore additional partnerships with professional sports organizations, employers, and healthcare brands to further research the links between sleep quality, athletic performance, employee productivity, and human longevity.

As the sleep aid market, valued at $91.4 billion, continues to evolve, Somnee and similar startups are leveraging technology, neuroscience, and AI to address the widespread issue of sleep disorders. With an estimated 50 million to 70 million Americans suffering from chronic sleep disorders, the demand for innovative sleep solutions remains high.