TechCrunch Industry News
a16z and Benchmark-backed 11x has been claiming customers it doesn’t have
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.
12:14
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- 11X's financial struggles stemmed from internal mismanagement and a high customer churn rate due to product shortcomings and inflated revenue claims.
- The intense work environment at 11X, characterized by excessive hours and fear-based management, contributed to high employee turnover and dissatisfaction.
Deep dives
Financial Struggles and Controversies at 11X
11X, an AI-powered sales automation startup, has recently faced significant financial challenges that point to internal mismanagement. Although the company claimed rapid growth, with nearly $10 million in annualized recurring revenue shortly after its launch, sources indicated that many early customers exercised break clauses to cancel their contracts. Complaints about product performance, including issues like non-functioning emails and 'hallucinations' from the AI, contributed to this churn rate. Furthermore, allegations surfaced suggesting that 11X improperly claimed several companies as customers, leading to potential legal threats from those businesses.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
