Listen Labs had initially signed a $125 million Series C term sheet at a $1.5 billion valuation, led by Menlo Ventures. However, this funding round was ultimately not completed, and the company subsequently shifted to acquisition negotiations with Salesforce.
Financing shifts to acquisition
Sources say that Listen Labs abandoned the signed terms, which is uncommon in the venture capital market. The deal's failure is believed to be related to Salesforce's merger and acquisition negotiations.
Salesforce is negotiating a valuation of approximately $2 billion.
Business Insider reports that Salesforce is in discussions to acquire Listen Labs for approximately $2 billion. The negotiations are not finalized, and a deal could still fall through.
The AI customer research sector is gaining momentum.
Listen Labs was co-founded in 2023 by Florian Jüngermann and Alfred Wahlforss. The product uses voice AI to conduct customer interviews and automatically generate reports and presentations. The company says such tools enable businesses to complete market research faster.
Additional information: Listen Labs completed a $69 million Series B funding round in January this year, with a valuation of $500 million; its clients include Microsoft, Canva, Anthropic, and Sweetgreen.