VC Interest in Sleep Startups Remains Strong
Startups focused on sleep health and technology continue to attract VC funding, tackling a widespread and growing problem.
Getting enough quality sleep isn’t just about feeling rested — it’s closely linked to happiness, productivity, and overall well-being. According to the National Sleep Foundation, adults with poor sleep health are four times more likely to be unhappy. Yet, over half of Americans don’t sleep enough.
This widespread issue hasn’t gone unnoticed by startups — or by VCs. In recent years, hundreds of millions of dollars in venture capital have flowed into companies focused on sleep-related products and treatments. These startups aim to improve sleep through better technology, therapeutic solutions, and wellness innovations.
Sleep as a Wellness Priority
Many of the top-funded sleep startups are part of the broader wellness movement. Investors recognize that sleep is a core part of health, and good sleep is essential for fitness, mental clarity, and disease prevention.
One of the most notable players is Oura, known for its biometric-tracking wearable ring. With $348 million raised — including a $200 million Series D — Oura helps users monitor sleep stages and oxygen levels, generating a personalized “Sleep Score.”
The Sleep Co., based in Mumbai, has raised $43 million for products like orthopedic mattresses that promote cooler, more supportive sleep. In Boston, Embr Labs has attracted over $16 million for a wearable that regulates body temperature, offering relief from heat disruptions like hot flashes.
Advertisement
Multiplier | The World's Leading Global Human Platform
Multiplier is a leading global employment platform that manages employment, payroll & compliance for International Teams. Multiplier makes it easy to hire, onboard, manage, and pay employees and contractors around the world. We offer end-to-end global employee management – All in one place!
Tackling Sleep Apnea with Innovation
Sleep apnea — a condition that may affect nearly 1 billion people globally — is another major area drawing VC funding.
Mosanna Therapeutics recently secured $80 million in Series A funding for a nasal spray designed to treat obstructive sleep apnea. Another startup, XII Medical, raised $45 million for neuromodulation therapy to manage apnea symptoms. Meanwhile, Invicta Medical has raised at least $29.5 million for a neurostimulation system aimed at apnea treatment.
This sector is expected to grow rapidly. Global spending on sleep apnea diagnostics and treatments is projected to exceed $7 billion by next year, with consistent growth ahead.
Mixed Results, but Growing Potential
Despite the momentum, sleep startups have had a mixed track record. Brands like Purple and Casper once excited the VC world but struggled after going public. Casper eventually sold to a private equity firm, and Purple’s stock now trades under $1.
Eight Sleep, a company behind temperature-adjusting smart bed covers, raised over $160 million. However, it hasn’t announced new funding since 2021.
Still, the latest wave of startups appears more focused and better aligned with current wellness and health trends. And as long as sleep remains a key issue for millions, VCs seem likely to keep investing in the technologies promising to solve it.