AI market research startup Listen Labs reportedly abandoned a signed Series C funding round, which would have valued the company at $1.5 billion. The $125 million round was set to be led by Menlo Ventures, according to sources familiar with the matter.
The decision to walk away from the signed term sheet is attributed to ongoing acquisition discussions with Salesforce. The CRM giant has reportedly held talks to purchase Listen Labs for around $2 billion, though these discussions are not yet finalised and may not result in a deal.
Listen Labs, founded in 2023 by Florian Jüngermann and Alfred Wahlforss, specialises in using voice AI to conduct customer interviews and generate market research reports. The startup has approximately $30 million in annualized revenue and counts Microsoft, Canva, Anthropic, and Sweetgreen among its customers.
If the talks with Salesforce do not lead to an acquisition, venture capitalists reportedly anticipate Listen Labs will seek a new funding round targeting a valuation of $2 billion or higher.