Listen Labs, a startup specializing in AI-powered customer interviews, recently signed a term sheet for a $125 million Series C funding round at a $1.5 billion valuation, with Menlo Ventures expected to lead. However, the company later decided not to proceed with the financing, a move that is uncommon and generally discouraged in venture capital circles. The withdrawal is believed to be linked to ongoing acquisition discussions with Salesforce, which reportedly values Listen Labs at approximately $2 billion. These talks are not yet finalized and may not result in a deal.
Founded in 2023 by Florian Jüngermann and Alfred Wahlforss, Listen Labs uses AI to automate customer research by generating survey questions and conducting interviews via audio or video. The AI then compiles the data into reports and presentations, streamlining a process traditionally handled by human researchers. This technology offers companies faster and more cost-effective insights into customer feedback, a service currently utilized by clients such as Microsoft, Canva, Anthropic, and Sweetgreen.
The startup operates in a competitive market alongside companies like Simile, Outset, Keplar, and Aaru, which also leverage AI to transform customer research. Some competitors simulate human behavior to predict responses without direct interviews, while others automate interactions with real participants.
Listen Labs reported about $30 million in annualized revenue, significantly higher than some competitors. Its previous funding included a $69 million Series B round at a $500 million valuation earlier this year. Industry observers suggest that if the Salesforce acquisition does not materialize, Listen Labs could re-enter the funding market aiming for a valuation of $2 billion or more. However, Salesforce may reconsider the purchase given the high revenue multiple involved.
Neither Listen Labs, Salesforce, nor the involved investors have commented publicly on the situation.