The Brief:
- What happened: 11x.ai, a startup focused on AI-powered sales development bots, secured $50 million in a Series B funding round led by Andreessen Horowitz, bringing the company’s valuation to around $350 million. The funding follows a $24 million Series A closed earlier in 2024, led by Benchmark, which valued the company at $90 million.
- Context: With annual recurring revenue (ARR) nearing $10 million, 11x.ai’s current valuation is approximately 35 times ARR—a more grounded multiple compared to some other AI companies. Hebbia, for example, recently raised a Series B at 54 times ARR. The funding strengthens 11x.ai’s position in the competitive landscape of AI-powered Sales Development Representatives (AI SDRs).
- The Players: The Series A included participation from investors like 20VC, Project A, Lux Capital, and SV Angel. Now, Andreessen Horowitz’s backing adds notable support as the company looks to scale in a rapidly growing market.
The Insight:
The Series B round highlights strong investor confidence in 11x.ai amid increasing competition in AI SDR solutions, where differentiation is a challenge. Despite some investor caution in the space, 11x.ai’s significant funding demonstrates belief in its growth potential.
Competitive Landscape:
- AI SDRs on the rise: 11x.ai is part of an expanding roster of AI SDR providers, which includes competitors like Regie.ai, AiSDR, and Artisan, along with incumbents such as Salesforce, which has also introduced autonomous sales agent tools.
- Valuation and Growth: 11x.ai’s valuation at 35 times ARR reflects a cautious yet optimistic approach from investors, balancing market potential with realistic revenue multiples.
Product Snapshot:
- The AI Workforce: 11x.ai currently offers two AI “digital workers.” Alice, an AI SDR, handles lead generation, research, and outreach, while Jordan, a multilingual AI phone representative, manages calls in over 30 languages.
The Big Picture: As more companies turn to AI to streamline and scale sales operations, AI SDRs are becoming pivotal. For 11x.ai, maintaining ARR growth and unique product capabilities will be essential to standing out and sustaining investor interest as the market continues to expand.
What’s Next: With fresh capital from Andreessen Horowitz, 11x.ai is poised to further develop its AI workforce. The challenge will be differentiating its offerings in an increasingly crowded field and leveraging its product functionality to gain a competitive edge.
