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.
Content Courtesy – Tech Crunch
