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The Rise and Fall of 11x: A Cautionary Tale for the AI Startup Ecosystem
In the fast-paced world of artificial intelligence startups, the story of 11x is a stark reminder that not all that glitters is gold. This AI-powered sales automation company, once hailed as a rising star in Silicon Valley, now stands as a cautionary tale of what can go wrong when hype, ambition, and questionable practices collide.
I ran into a16z’s briefing on 11x’s story, let’s see what we can learn from the 11x saga as startups, investors, and customers alike.
Their Meteoric Rise is Too Good to Be True?
11x burst onto the scene in 2022 with a bold promise: to revolutionize outbound sales through AI-powered bots.
Founded by Hasan Sukkar, the company claimed to have reached nearly $10 million in annualized recurring revenue (ARR) within just two years. This explosive growth caught the attention of heavyweight investors, with Benchmark leading a $24 million Series A round and Andreessen Horowitz (a16z) following up with a $50 million Series B.
On the surface, 11x seemed to have it all — cutting-edge technology, rapid growth, and the backing of Silicon Valley’s most prestigious venture capital firms. But as we’ll soon discover, appearances can be deceiving.
