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.
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. ButâŚ
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. ThusâŚ
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. Letâs 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.
of individuals are aware of sleep’s impact on productivity and search for SleepTech solutions.
is the generated revenue by Calm, the leading mental wellness app.
The smart bed users reported their sleep quality improved by 100 minutes per night.
VENTURE LANDSCAPE
Key verticals:
WAVEUP VIEW
SleepTech devices are a treasure trove of sensitive information about userâs sleep patterns, health conditions, and lifestyles. Any breach can severely damage startupsâ reputation and disrupt customersâ 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.
Explaining the importance of SleepTech devices is like sailing through a night sea where the beacon of peopleâs 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 customersâ loyalty.
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.
From diligent industry analysis to storytelling and financial forecasts, weâre helping founders crystallize and structure key business fundamentals and translate them into a compelling investment opportunity framed in a winning pitch deck.
Evaluating potential investments, conducting due diligence, and supporting portfolio companies on their new fundraising rounds.
Discovering market opportunities in the market and developing execution strategies to build actionable and scalable blueprints for growth.
WHO WE ARE
Market intelligence
Fundraising support
Pitch decks
Financial models
Investor research
Growth consulting
Go-to-market strategies
Marketing/sales materials
Design support
The sleeptech industry attracts venture capitalists for several reasons: rising awareness of sleep health, technological innovation, diverse market opportunities, and potential regulatory support.
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.
While sleeptech is not on VCsâ 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 foundersâ shoulders and their ability to attract investor attention with a compelling story and sell their idea, team, business model, strategy, etc.
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.
The biggest mistake we see in sleeptech startupsâ decks is the lack of a compelling investment narrative. The pitch decks rarely address the vital âWhy now?â 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.
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.
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.
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.
Yes, our services extend to helping in identifying M&A opportunities, crafting CIM, and conducting modeling for buy-side and sell-side transactions.
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.
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.
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.
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 letâs talk!