11x.ai, a developer of AI sales reps, has raised $50M Series B led by A16Z, sources say

Date:

Share post:


11x.ai, a startup that develops AI-powered sales development bots, has secured roughly $50 million in Series B funding, TechCrunch has learned. The new round was led by Andreessen Horowitz, valuing the company at around $350 million, multiple sources told TechCrunch.

The recent deal follows the company’s $24 million Series A, which was led by Benchmark with the participation of other investors including 20VC, Project A, Lux Capital, and SV Angel. While 11x.ai announced its Series A round earlier this month, we’ve learned that the deal closed earlier in 2024. The company was valued at $90 million during its Series A, according to one source.

11x.ai and Andreessen Horowitz didn’t immediately respond to a request for comment.

Hasan Sukkar, 11x’s founder and CEO, told TechCrunch that the company is approaching $10 million in annual recurring revenue. This implies that investors valued the startup at about 35 times ARR, a multiple that’s a notch more grounded than heady valuations recently garnered by other AI-powered companies with similar revenues.  For example, Hebbia, a large document search startup, has raised a Series B at 54 times ARR, TechCrunch reported in July.

While Series B places 11x.ai ahead of competitors in terms of valuation and total capital, investors told TechCrunch that it’s still too early to tell whether the company has established a significant lead over its rivals.  11x.ai is one of many quickly growing startups building AI sales development representatives, or AI SDRs. Other startups working on similar solutions include Reggie.ai, AiSDR and Artisan. Incumbents such as Salesforce have also introduced products that work as autonomous sales agents.

Although some investors are wary of backing AI SDR startups because it is hard to distinguish these companies’ offerings from each other, 11x’s Series B shows that other VCs are not afraid to make a larger bet on one of these startups.

11x.ai currently has two AI bots, or what the company is calling “automated digital workers.” Alice is an AI SDR that handles sales lead generation, research and customer outreach. The company recently introduced Jordan, an AI phone sales representative that speaks over 30 languages and can handle inbound and outbound conversations with prospective human buyers.  

The company told TechCrunch last year that they’re developing AI bots for talent acquisition and human resources. Now that 11x.ai has more capital, it may focus on expanding its suite of digital employees beyond just sales representatives.



Source link

Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

Recent posts

Related articles

Waymo’s latest funding round boosts it to a $45B valuation

Waymo recently closed a $5.6 billion Series C funding round led by parent company Alphabet and joined...

Oil giant BP is killing 18 hydrogen projects, chilling the nascent industry

Tucked inside a 32-page earnings report, oil and gas giant BP revealed it was killing 18 early-stage...

Meta extends political ad ban past Election Day

Meta announced Tuesday that it is extending its restriction on political ads until later in the week,...

Canadian authorities say they arrested hacker linked to Snowflake data breaches

A hacker suspected of involvement in a series of massive Snowflake-related hacks has been arrested in Canada,...

Flash, founded by ex-Flipkart exec, launches in the U.S. to help shoppers juggle multiple online orders 

Flash, the payment management service that tracks all your online purchases, announced Tuesday its entry into the...

India issues notice to Wikipedia over concerns of bias

Wikipedia is facing mounting regulatory pressure in India as local authorities question whether the platform should continue...

Alan unveils AI health assistant for its 680,000 health insurance members

French tech startup Alan held a press conference this morning to announce three product updates. While it...

Coatue is raising $1B for AI bets

Coatue Management, a hedge fund that invested heavily in tech startups during the pandemic-infused boom, is raising...