Updated
Updated · TechCrunch · Sep 10
Listen Labs Scraps $125 Million Round as Salesforce Weighs $2 Billion Acquisition
Updated
Updated · TechCrunch · Sep 10

Listen Labs Scraps $125 Million Round as Salesforce Weighs $2 Billion Acquisition

1 articles · Updated · TechCrunch · Sep 10

Summary

  • $125 million in Series C financing at a $1.5 billion valuation never closed after Listen Labs walked away from a signed term sheet, an unusual step in venture funding.
  • Salesforce has held talks to buy the voice-AI market research startup for about $2 billion, though discussions remain unfinished and could still fall apart.
  • Listen Labs generates about $30 million in annualized revenue, and one person familiar with Salesforce deals said a roughly 67-times-revenue price could prove too rich for the CRM company.
  • Simile's late-July $200 million Series B at a $2 billion valuation likely reset pricing expectations; investors said Listen Labs could seek $2 billion or more if acquisition talks fail.
  • The three-year-old startup was valued at $500 million in January, and counts Microsoft, Canva, Anthropic and Sweetgreen among customers using its AI-driven customer interview tools.

Insights

Why did a hot AI startup abandon $125 million in guaranteed cash for a mere conversation with Salesforce?
Will rejecting late-stage funding to keep a clean cap table become the new playbook for AI founders?