11x.ai, a developer of AI sales reps, has raised $50M Series B led by A16Z, sources say
11x.ai, a startup that develops AI-powered sales development bots, has secured roughly $50 million in Series B funding, TechCrunch has learned.
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11x.ai, a pioneering startup that specializes in developing artificial intelligence (AI)-powered sales development bots, has secured a significant $50 million in Series B funding, led by the renowned venture capital firm Andreessen Horowitz. This latest round of funding values the company at approximately $350 million, a substantial increase from its previous valuation of $90 million following its $24 million Series A funding, led by Benchmark.
Notably, 11x.ai is approaching $10 million in annual recurring revenue, which translates to a valuation multiple of around 35 times ARR. This impressive milestone is a testament to the company's rapid growth and the increasing demand for AI-powered sales development solutions.
The funding will likely be used to expand the company's suite of digital employees beyond just sales representatives. Currently, 11x.ai has two AI bots, Alice and Jordan, which are capable of handling a range of tasks, including sales lead generation, research, customer outreach, and phone sales conversations. The company is also developing AI bots for talent acquisition and human resources, further solidifying its position as a leader in the AI-powered sales development space.
The valuation of 11x.ai is particularly noteworthy, as it is one of the more grounded valuations for an AI-powered company with similar revenue to others in the space. investors are willing to make larger bets on AI sales development representative (SDR) startups, despite the challenges of distinguishing their offerings from each other.
11x.ai is one of many quickly growing startups building AI SDRs, and is competing with other startups such as Reggie.ai, AiSDR, and Artisan. Incumbents like Salesforce have also introduced products that work as autonomous sales agents, further intensifying the competition in the market.
The funding is a significant milestone for 11x.ai, and will likely be used to further develop and expand its AI-powered sales development bots. With this latest round of funding, the company is poised to continue its rapid growth and solidify its position as a leader in the AI-powered sales development space.
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