AI research startup Listen Labs scrubbed a $1.5B funding round for Salesforce talks

Listen Labs walked away from a signed Series C term sheet that would have been led by Menlo Ventures, TechCrunch reports. The proposed financing was for $125 million at a $1.5 billion valuation, but sources tell TechCrunch the deal never closed after the startup pulled back from the agreement.

People familiar with the situation told TechCrunch the decision to scrub the round likely related to ongoing acquisition discussions with Salesforce, which Business Insider reported could value Listen Labs near $2 billion. Those talks are not finished and may not produce a sale, and some venture capitalists told TechCrunch they expect Listen Labs would return to the market seeking a valuation of $2 billion or more if an acquisition does not happen.

Listen Labs, founded in 2023 by Florian Jüngermann and Alfred Wahlforss, builds AI that designs surveys and conducts customer interviews over audio or video, then packages insights into reports and slide decks. The startup reports about $30 million in annualized revenue and counts clients such as Microsoft, Canva, Anthropic, and Sweetgreen.

The company operates in a crowded and fast-evolving space. A late-July funding event for rival Simile — a $200 million Series B at a $2 billion valuation — likely shifted valuation expectations, and other competitors include Outset, Keplar, and Aaru. Listen Labs was previously valued at $500 million after a $69 million Series B in late January led by Ribbit Capital. Observers note that a potential Salesforce acquisition would require paying a high multiple of current revenue, a factor that could influence whether talks proceed to a deal.