INDUSTRY SPOTLIGHT

SleepTech

Step into the future of sleeping routine, where technology and sleep intertwine to create a new dawn of possibilities. Explore the market along with the business potential and possible risks in a fast-evolving and highly-competitive SleepTech segment.

Synchronize dreams and devices today, improve health tomorrow

Driven by a rise in health awareness, a growing prevalence of sleep disorders, and escalating stress levels in modern life, the SleepTech industry is experiencing a notable boom. Having transcended the status of mere devices, smart beds, wearables, and AI-powered sleep apps are now crucial aspects of modern sleep hygiene. All this, coupled with a recent leap in funding, which skyrocketed from $375M in 2017 to $747M in 2021, has transformed the SleepTech industry into a fertile ground ripe with abundant opportunities for newcomers. But…

The path is not all roses

SleepTech is like a double-edged sword. While it offers solutions for improving sleep routines, improper data management can lead to privacy nightmares. Almost every 8th individual fears potential data breaches, as stated by the PwC survey.

This leads to another obstacle – educating the market about the functionality, value, and data processing of the SleepTech products is a long and tumultuous process. Thus…

Having a bright idea is just the tip of the iceberg

And that is where Waveup takes the spotlight. With a track record of helping startups secure billions of $ in funds and boost growth through effective go-to-market strategies, at Waveup, we know the game all too well. Let’s check our SleepTech market analysis to see what this playground is about.

5x growth
SleepTech market is projected to soar fivefold, from $17.9B in 2022 to $95B in 2032.

 

1 in 5
adults admits suffering from insomnia.

65%

of individuals are aware of sleep’s impact on productivity and search for SleepTech solutions.

$22.5M

is the generated revenue by Calm, the leading mental wellness app.

100+

The smart bed users reported their sleep quality improved by 100 minutes per night.

VENTURE LANDSCAPE

In 2021, the SleepTech industry secured $747M in funding

 
Key verticals:

  • Sleep Tracking and Analysis
  • Therapeutic Devices and Wearables
  • Sleep Disorder Treatment Solutions
  • Sleep Wellness Platforms and Apps
  • Integration with Smart Home Technology

Leading SleepTech venture capital firms

Write to us to know more

WAVEUP VIEW

Challenges on the way of SleepTech startups

Digital privacy struggle

SleepTech devices are a treasure trove of sensitive information about user’s sleep patterns, health conditions, and lifestyles. Any breach can severely damage startups’ reputation and disrupt customers’ trust. Thus, implementing data protection measures that comply with regulations like GDPR and communicating the methods of data collection and usage are vital yet expensive, leading to additional funds infusions.

Deciphering education puzzle

Explaining the importance of SleepTech devices is like sailing through a night sea where the beacon of people’s awareness still flickers on a distant shore. Educating potential customers about the value and benefits of SleepTech is both time-consuming and costly. New market entrants must possess a clear value proposition and robust business model to secure funding and thus earn customers’ loyalty.

Climbing the steep slopes of integration

SleepTech products often require integrations into existing healthcare systems or other tech ecosystems like smartphones or smart houses. Ensuring integration might be challenging, but building solid partnerships with established brands, healthcare providers, and educational institutions can make it smoother.

How we can help

Startups
Fundraising advisory

From diligent industry analysis to storytelling and financial forecasts, we’re helping founders crystallize and structure key business fundamentals and translate them into a compelling investment opportunity framed in a winning pitch deck.

Investors
Due diligence and portfolio support

Evaluating potential investments, conducting due diligence, and supporting portfolio companies on their new fundraising rounds.

Established companies
Growth hacking

Discovering market opportunities in the market and developing execution strategies to build actionable and scalable blueprints for growth.

WHO WE ARE

Unlocking your next stage of growth

Waveup is a leading global advisory empowering companies to fuel growth, attract investments, and secure strategic partnerships.

We turn data into business insights that drive results, helping companies excel in the competitive B2C and B2B spaces across 50+ verticals, discovering and catalizing opportunities for growth.

Our investment consulting services for SleepTech startups

Market intelligence

Fundraising support

Pitch decks

Financial models

Investor research

Growth consulting

Go-to-market strategies

Marketing/sales materials

Design support

Learn more

FAQ

What makes the industry appealing for sleeptech financing opportunities?

The sleeptech industry attracts venture capitalists for several reasons: rising awareness of sleep health, technological innovation, diverse market opportunities, and potential regulatory support.

What is the current size of the sleeptech market, and its potential for future sleeptech startups?

The sleeptech market hit $17.9B in 2022, and it’s expected to grow at an annual rate of 18%. Thus, it’s a rapidly evolving field with considerable ($747M funds secured in 2021) investment, consumer interest, and a substantial scope of applications, from consumer wellness to medical treatments.

How challenging is it to secure funding for sleeptech startups nowadays?

While sleeptech is not on VCs’ 2023 radars like, say, AI, robotics, or climate tech, it still maintains a steady investor interest, with sleeptech startups standing a fairly good chance to raise money. The market interest is there, so the rest lies on the founders’ shoulders and their ability to attract investor attention with a compelling story and sell their idea, team, business model, strategy, etc.

How long does it take to create a sleeptech pitch deck and a financial model for a sleeptech startup?

The time of project execution depends on its complexity and our current workload. Typically, we can fashion the materials within two to three weeks, but in some cases, the process may stretch to a whole month. Thus, it’s better to negotiate time frames individually.

What are the key mistakes sleeptech startups make in their pitch decks?

The biggest mistake we see in sleeptech startups’ decks is the lack of a compelling investment narrative. The pitch decks rarely address the vital ‘Why now?’ question, lack any meaningful traction or proof of concept information, and fail to highlight the strengths of their business model and go-to-market strategy. Burdening slides with technical jargon is another common turnoff for investors we see in sleeptech decks.

What are the main challenges sleeptech startups face, and how are they tackling them?

The main concerns amid sleeptech companies are sensitive data management, communication of sleeptech products’ value and functionality to the customers, and their seamless integration within the existing systems. Thus, it’s vital to implement data protection measures, attract initial funding, and collaborate with well-established industry players.

How competitive is the sleeptech market?

The sleeptech market is characterized by a dynamic and increasingly crowded competitive environment with innovation, differentiation, global expansion, and alignment with consumer needs adding fuel to the fire.

What services do you provide for investors who are either considering or have already invested in sleeptech startups?

We help funds that consider sleeptech investments by conducting thorough due diligence for sleeptech projects and offer robust support throughout the fundraising endeavors of the companies within our partner funds’ portfolios.

Do you provide sleeptech M&A support?

Yes, our services extend to helping in identifying M&A opportunities, crafting CIM, and conducting modeling for buy-side and sell-side transactions.

Do you make intros to sleeptech VCs?

In case of round size, team, product, etc. align, we can connect you with notable sleeptech VCs. However, this service is only a part of our comprehensive investor relations pack. We help line up investors who are into sleeptech, get founders ready for their first meetings with them, and make sure everyone stays in the loop after a deal is made.

Do you provide comprehensive sleeptech market research on request?

We’re equipped to provide tailor-made research solutions based on the latest data about the sleeptech market size. The sleeptech segment consists of various subsections and differs across product types, regions, business models, etc.; that’s why we are ready to adjust our research to coincide with the client’s unique needs.

Which sleeptech startup funding stages do you assist with?

Our expertise is rooted in managing projects through the Seed to Series B growth stages within the sleeptech sector. This core focus, however, doesn’t limit our reach. With a successful track record, we assist companies in pre-seed and Series C+ stages and collaborate with well-established companies and investment funds.

Industries we work with

Have a SleepTech project in mind? We are here to help

From end-to-end fundraising support to M&A advisory and growth hacking, Waveup will help catapult your SleepTech project to new heights. Leave your email, and let’s talk!

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