● Covered by 1 source · 1 reportMedium impact1 neutral
Listen Labs Halts $1.5B Funding Round Amidst Acquisition Talks with Salesforce
Key points
- Listen Labs signed a term sheet for a $125M Series C at $1.5B valuation.
- The funding round was halted due to acquisition talks with Salesforce.
- Salesforce is reportedly discussing a $2 billion acquisition of Listen Labs.
- Listen Labs uses voice AI for customer interviews and market research.
Funding Round Interrupted
Listen Labs, a startup specializing in voice AI for customer interviews in market research, recently secured a term sheet for a $125 million Series C funding round. This round would have valued the company at $1.5 billion, with Menlo Ventures slated to lead the investment. However, the funding round did not close, as Listen Labs withdrew from the signed term sheet.
Salesforce Acquisition Discussions
The decision to halt the funding round is linked to ongoing acquisition talks with Salesforce. Business Insider reported that Salesforce has been in discussions to acquire Listen Labs for around $2 billion. These discussions are not yet finalized and may not result in a definitive deal.
Market Position and Valuation Context
Listen Labs is a prominent player in the AI-driven customer research sector, generating about $30 million in annualized revenue. A competitor, Simile, recently closed a $200 million Series B at a $2 billion valuation, which may have influenced Listen Labs' valuation expectations. If the Salesforce talks do not materialize, venture capitalists anticipate Listen Labs will seek a valuation of $2 billion or higher in a new funding round.
Potential Impact for Salesforce
Acquiring Listen Labs could enhance Salesforce's AI capabilities by integrating the startup's technology to predict customer needs. However, the reported $2 billion acquisition price represents a 67 times revenue multiple, which some sources suggest Salesforce might find too high.
Listen Labs' Technology and Background
Founded in 2023 by Florian Jüngermann and Alfred Wahlforss, Listen Labs' AI technology develops survey questions and conducts customer interviews via audio or video. The system then compiles these conversations into reports and presentations, automating tasks traditionally performed by human market researchers for Fortune 500 companies.
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Reporting from
Listen Labs, an AI market research startup, paused a $125 million Series C funding round at a $1.5 billion valuation due to ongoing acquisition discussions with Salesforce. Salesforce is reportedly considering purchasing Listen Labs for approximately $2 billion, which would integrate the startup's voice AI customer interview technology into Salesforce's offerings.