Somnee has closed a $10 million seed extension round to advance its AI-powered sleep headband technology and launch second-generation products. The Berkeley-based company was founded in 2022 by sleep researcher Dr. Matt Walker and scientists from UC Berkeley.
Khosla Ventures led the funding round, with participation from Marc Benioff’s TIME Ventures, LEAD VC, the NBA’s Orlando Magic ownership group, Seaside Ventures, Nelstone Ventures, and Metalab. The funding will support the launch of Somnee’s second-generation headband featuring its SmartSleep AI operating system.
The company addresses a market where nearly one in three adults experience poor sleep quality. Somnee’s headband uses proprietary EEG technology and artificial intelligence to map brain activity and deliver personalized stimulation that guides users into natural sleep states.
In published studies, Somnee demonstrated significant performance improvements over existing sleep solutions. Users fell asleep twice as fast, stayed asleep over 30 minutes longer, and reduced nighttime movement by one-third. The technology outperformed melatonin by four times and cognitive behavioral therapy for insomnia by two times.
“Enhanced sleep can radically improve happiness, energy, and purpose,” said Marc Benioff, founder of TIME Ventures and CEO of Salesforce. “It’s been a critical element of my sleep hygiene since they launched, and I was a customer long before Tim reached out to invest in their tech.”
The second-generation product is currently piloted with select NBA teams and their performance training staff through the league’s 2025 Launchpad program. Somnee has established partnerships with Equinox Hotels and continues exploring collaborations with professional sports organizations, employers, and healthcare brands.
“Sleep is the cheapest, most underused longevity drug we have,” said Vinod Khosla, founder of Khosla Ventures. “Whereas others attempt to track sleep, Somnee’s uniquely non-invasive and drug-free approach tunes it every night with a headband as effortlessly as brushing your teeth.”
CEO Tim Rosa, who joined 18 months ago, has relocated manufacturing operations out of China and expanded teams in Berkeley and India. The company operates in the $91.4 billion sleep aid market with technology backed by 24 patents and clinical validation.
“We began building this technology to explore a provocative question: could a sleep aid communicate in the same electrical dialect as the brain itself?” said Dr. Matt Walker, co-founder and bestselling author of ‘Why We Sleep’ . “We’re trying to speak to the brain in its own language – using gentle, precisely timed pulses of electricity.”
