11x.ai, a startup developing an AI-based 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.
The latest 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. Although 11x.ai announced its Series A round earlier this month, we’ve learned that the deal closed in early 2024. The company was valued at $90 million during its Series A period, according to one source.
11x.ai and Andreessen Horowitz did not immediately respond to requests for comment.
Hasan Sukkar, founder and CEO of 11x, told TechCrunch that the company’s annual recurring revenue is approaching $10 million. This means that investors valued the startup at around 35 times its ARR. This is a clearer multiple than the lofty valuations other AI-based companies with similar revenues have recently achieved. For example, Hebbia, a large-scale document search startup, raised its Series B at 54x ARR, TechCrunch reported in July.
The Series B puts 11x.ai ahead of its peers in terms of valuation and total capital, but investors told TechCrunch that it’s still too early to tell whether the company has gained a significant edge over its rivals. 11x.ai is one of many fast-growing startups building AI Sales Development Representatives (AI SDRs). Other startups developing similar solutions include Reggie.ai, AiSDR, and Artisan. Established companies like Salesforce have also launched products that act as autonomous sales agents.
Some investors are wary of backing AI SDR startups because it is difficult to distinguish these companies’ products from one another, but 11x’s Series B shows that other VCs are not afraid to invest larger sums in one of these startups. It shows.
11x.ai currently has two AI bots, or what the company calls “automated digital workers.” Alice is an AI SDR that handles sales lead generation, research, and customer support. The company recently launched Jordan, an AI phone sales representative that speaks more than 30 languages and can handle inbound and outbound conversations with 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 can focus on expanding its suite of digital employees beyond sales reps.
