11x.ai Secures $50 Million in Series B Funding to Enhance AI Sales Development Bots
In a significant move within the tech landscape, 11x.ai, a promising startup specializing in AI-driven sales development bots, has successfully raised approximately $50 million in Series B funding. This funding spree was led by the reputable Andreessen Horowitz and reportedly values the company at around $350 million, according to insiders familiar with the investment.
A Rapid Ascent
The recent Series B funding follows 11x.ai’s earlier success, where it secured $24 million in a Series A round, also attracting attention from notable investors like Benchmark, 20VC, Project A, Lux Capital, and SV Angel. While the Series A was announced just recently, it was finalized earlier in 2024, with the company’s valuation set at $90 million at that time.
Hasan Sukkar, the founder and CEO of 11x.ai, shared some exciting news with TechCrunch, revealing that the company is on track to approach $10 million in annual recurring revenue (ARR). This impressive figure suggests a valuation multiple of around 35 times ARR—more conservative compared to other AI companies that have recently garnered sky-high valuations. For instance, tech company Hebbia secured funding at an eye-popping multiple of 54 times ARR earlier this year.
A Competitive Edge?
While this funding round places 11x.ai ahead of its competitors in terms of valuation and total capital raised, industry insiders caution that determining a definitive competitive edge is still premature. 11x.ai isn’t alone in the rapidly evolving landscape of AI sales development representatives (SDRs); it faces competition from a number of similarly ambitious startups, including Reggie.ai, AiSDR, and Artisan. Even established giants like Salesforce are stepping into this realm by offering autonomous sales agent solutions.
Interestingly, while some investors are becoming increasingly cautious about investing in AI SDR startups due to the overlapping nature of their offerings, the backing that 11x.ai has received signals a robust confidence in its potential.
Innovative Offerings
11x.ai is currently at the forefront with two standout AI bots that it calls "automated digital workers." The first, Alice, functions as an AI SDR responsible for lead generation, research, and customer outreach. The other bot, named Jordan, takes things a step further, serving as an AI phone sales representative boasting proficiency in over 30 languages, ready to engage in both inbound and outbound conversations with prospective buyers.
Moreover, 11x.ai has ambitious plans to broaden its scope beyond sales. The company previously mentioned its intention to craft AI bots for talent acquisition and HR, and the recent influx of capital may accelerate the development of this expanded suite of digital workforce solutions.
Conclusion
The landscape of AI sales technology is shifting rapidly, and 11x.ai’s recent funding is a testament to the increasing interest and investment in automated solutions designed to improve sales processes. As the company expands its offerings and ramps up its technological capabilities, it will be interesting to monitor its trajectory in the competitive AI landscape.
The AI Buzz Hub team is excited to see where these breakthroughs take us. Want to stay in the loop on all things AI? Subscribe to our newsletter or share this article with your fellow enthusiasts.
