TechCrunch Industry News a16z and Benchmark-backed 11x has been claiming customers it doesn’t have
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Mar 27, 2025 Hassan Sakaar, founder and CEO of 11x, shares insights into the tumultuous journey of his AI-powered sales automation startup. He discusses the company's explosive initial growth contrasted with alarming financial struggles and misleading customer claims. Sakaar addresses the toxic work environment and high employee turnover following the company's move from London to San Francisco. He candidly reflects on the impact of these challenges on the company’s legitimacy and the discontent among staff, painting a cautionary tale about startup culture.
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False Customer Claim
- ZoomInfo, listed on 11x's website, was not a customer and threatened legal action.
- ZoomInfo conducted a short trial, found the product underwhelming, and requested 11x to remove their logo.
Another False Endorsement
- Airtable, also featured on 11x's website, confirmed they were not a customer and didn't approve logo usage.
- They conducted a short trial and deemed the product unsuitable for their business.
Inflated ARR
- 11x required one-year contracts with three-month break clauses, essentially trials.
- They reported the full annual recurring revenue (ARR) even when customers churned after three months.