11xAI Faces Allegations of Fake Customer Claims, High Churn, and Toxic Work Culture
AI sales startup 11xAI faces allegations of fake customer claims, inflated revenue, and a toxic work culture.
Matilda
11xAI Faces Allegations of Fake Customer Claims, High Churn, and Toxic Work Culture
Last year, AI-powered sales automation startup 11x appeared to be on an explosive growth trajectory. Image:Courtesy of Hasan Sukkar However, nearly two dozen sources — including investors and current and former employees — said that the company has experienced financial struggles, largely of its own making. Numerous people in the U.S. and U.K. said that the situation has become so tenuous that 11x’s lead Series B investor, Andreessen Horowitz, may even be considering legal action. However, a spokesperson for Andreessen Horowitz emphatically denied such rumblings, telling that a16z is not suing. 11x offers an AI bot for outbound cold sales duties, including identifying prospects, crafting custom messages, and scheduling sales calls. It’s one of a number of AI startups in the hot area known as AI sales development representatives, or AI SDRs. Founded in 2022 by Hasan Sukkar, 11x said it approached $10 million in annualized recurring revenue (ARR) just two years after launch. It moved fro…
