Sleep tech startup Ozlo raises $22M Series B to push beyond earbuds
What's the deal? Boston-based Ozlo has raised $22 million in Series B funding led by Modi Ventures, the sleep technology company announced on October 29. Existing backers LifeArcDealroom has a profile for this one. Try Dealroom →, Artis VenturesDealroom has a profile for this one. Try Dealroom →, ResMed, Scrum VenturesDealroom has a profile for this one. Try Dealroom →, Drive by DraftKingsDealroom has a profile for this one. Try Dealroom →, and others joined, alongside angels including NFL quarterback Nick FolesDealroom has a profile for this one. Try Dealroom → and Whole30Dealroom has a profile for this one. Try Dealroom → founder Melissa UrbanDealroom has a profile for this one. Try Dealroom →. The round size includes previously issued convertible instruments.
What's the endgame? Ozlo wants to expand beyond its Sleepbuds earbuds into broader nighttime health. That includes advancing the regulatory work needed to submit a tinnitus product to the US Food and Drug Administration (FDA) for review.
Why now? The raise follows the July launch of Sleepbuds 2 and comes as Ozlo passes 260,000 customers in under two years. The company plans to scale its core earbuds business globally while investing in hardware, software, and research.
Context: Ozlo took over the product line BoseDealroom has a profile for this one. Try Dealroom → abandoned, raising $10 million in Series A in 2023. It is now building partnerships, including an integration with CalmDealroom has a profile for this one. Try Dealroom → and a tie-up with virtual sleep clinic Dreem Health to connect home users with specialists.
"We see tremendous potential to build on this foundation and evolve into a transformative sleep health platform powered by biosensing, AI, and neuromodulation," said Sahir Ali, founder of Modi Ventures.
What could go wrong? Ozlo's clinical ambitions remain developmental, not an established medical offering. Its tinnitus product still needs to clear FDA review before commercialisation.
The signal: The round sits in the 61st percentile for deal size, reflecting steady but not outsized investor appetite for sleep products promising health applications. The consumer-to-clinical path echoes rivals: Eight Sleep raised $50 million in March at a reported $1.5 billion valuation to expand predictive-health and FDA work, while SONDDealroom has a profile for this one. Try Dealroom → raised $7 million for sensing-focused sleep earbuds.
Read more: Business Insider
Image credit: Ozlo
