Somnee Raises $10M Seed to Expand AI Sleep Headband Backed by Khosla, Orlando Magic

Somnee, a sleep technology startup co-founded by neuroscientist Dr. Matt Walker and a team from UC Berkeley, has raised $10 million in a seed extension round led by Khosla Ventures with participation from Marc Benioff's TIME Ventures, the NBA's Orlando Magic ownership group, LEAD VC, and others. The company develops an AI-powered sleep headband that uses electroencephalogram (EEG) sensors and proprietary AI to map brain activity and deliver personalized stimulation, helping users fall asleep faster, stay asleep longer, and improve sleep quality. Clinical studies show Somnee's headband outperforms melatonin, cognitive behavioral therapy for insomnia, and Ambien in effectiveness. The startup is preparing to launch the second-generation device, which features a SmartSleep AI operating system enabling real-time monitoring and personalized interventions throughout the sleep cycle, and is currently piloting this technology with select NBA teams. Somnee aims to modernize the $91.4 billion sleep aid market by offering a drug-free, neuroscience-based alternative that enhances performance and neurological health, particularly benefiting professional athletes among others. The funding will support product development and expansion as the company targets wellness-focused consumers, employers, and sports organizations.