11x.ai Secures $50M Series B Funding Led by A16Z to Enhance AI Sales Rep Development, Sources Reveal

11x.ai, a rising startup specializing in AI-driven sales development bots, has successfully secured approximately $50 million in Series B funding, as reported by sources. This funding round, led by Andreessen Horowitz, values the company at around $350 million. This latest investment follows its previous Series A funding of $24 million, which was spearheaded by Benchmark and included participation from other notable investors such as 20VC, Project A, Lux Capital, and SV Angel. While 11x.ai announced its Series A round earlier this month, it was revealed that the deal actually closed earlier in 2024, with the company valued at $90 million at that time.

Both 11x.ai and Andreessen Horowitz have not yet responded to requests for comment. Founder and CEO Hasan Sukkar revealed that the startup is nearing $10 million in annual recurring revenue (ARR). This suggests that investors have assigned a valuation of approximately 35 times its ARR, a more conservative multiplier compared to other AI competitors with similar revenue figures. For instance, Hebbia, a prominent document search startup, raised its Series B at a valuation of 54 times ARR, as reported in July.

While this Series B funding places 11x.ai ahead of some competitors in terms of valuation and total capital raised, industry experts caution that it may still be premature to determine if the company has established a clear lead over rivals. 11x.ai competes within a burgeoning market of startups developing AI sales development representatives (AI SDRs). Among its competitors are Regie.ai, AiSDR, and Artisan, while established players like Salesforce are also launching autonomous sales agent solutions.

Despite some investor hesitance towards funding AI SDR ventures due to the similarities in product offerings, 11x.ai's Series B indicates a willingness among certain venture capitalists to make substantial investments in innovative startups within this field.

Currently, 11x.ai offers two AI bots, referred to as "automated digital workers." The first, Alice, functions as an AI SDR specializing in sales lead generation, research, and customer outreach. Recently, the company unveiled Jordan, an AI phone sales representative capable of communicating in over 30 languages and managing both inbound and outbound conversations with prospective buyers.

Last year, the company indicated plans to expand its AI bot offerings to include solutions for talent acquisition and human resources. With this recent infusion of capital, 11x.ai is well-positioned to enhance its suite of digital employees beyond sales representatives.