11x.ai, a startup developing an AI-powered sales development bot, has secured about $50 million in Series B funding, TechCrunch has learned. The new round was led by Andreessen Horowitz and values the company at about $350 million, multiple sources told TechCrunch.
This recent deal follows the company's $24 million Series A led by Benchmark with participation from other investors including 20VC, Project A, Lux Capital, and SV Angel. 11x.ai announced a Series A round earlier this month, with the deal now set to close in early 2024. According to one source, the company's Series A round was valued at $90 million.
11x.ai and Andreessen Horowitz did not respond to requests for comment.
11x founder and CEO Hasan Sukkar told TechCrunch that the company's annual recurring revenue is approaching $10 million. This means investors valued the startup at about 35 times ARR, a multiple that ranks above the dizzying valuations other AI-powered companies with similar revenues have recently achieved. There is evidence. For example, document search giant Hebbia raised a Series B of 54 times ARR, TechCrunch reported in July.
11x.ai outperforms competitors in terms of valuation and total capitalization in Series B, but investors tell TechCrunch they will decide whether the company has established a significant lead over its competitors. He said it was still too early. 11x.ai is one of many fast-growing startups building AI Sales Development Representatives (AI SDRs). Other startups working on similar solutions include Reggie.ai, AiSDR, and Artisan. Incumbent companies such as Salesforce have also introduced products that act as autonomous sales agents.
Some investors are wary of backing AI SDR startups because it's difficult to differentiate these companies' services from each other, but 11x's Series B suggests that other VCs may have an even larger stake in either of these startups. It shows you're not afraid to take a gamble.
11x.ai currently has two AI bots, or what the company calls “automated digital workers.” Alice is an AI SDR responsible for sales prospecting, research, and customer reach. The company recently introduced Jordan, an AI telesales representative who speaks more than 30 languages and can handle inbound and outbound conversations with human potential buyers.
The company told TechCrunch last year that it was 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 salespeople.