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a16z- and Benchmark-backed 11x has been claiming customers it doesn’t have | TechCrunch

Mar 25, 2025 - techcrunch.com
AI-powered sales automation startup 11x, founded in 2022, initially showed promising growth, claiming to approach $10 million in annualized recurring revenue (ARR) and securing significant investments, including a $50 million Series B led by Andreessen Horowitz. However, the company has faced financial struggles and internal issues, with reports of high customer churn due to product underperformance and misleading customer endorsements. Allegations include using fake customer logos on their website and inflating ARR by not differentiating between trial and long-term customers. Customers like ZoomInfo and Airtable have threatened legal action over unauthorized logo use, and many early customers discontinued using the product due to issues like hallucinations and poor email performance.

Internally, 11x has been criticized for a stressful work environment under CEO Hasan Sukkar, with employees expected to work long hours and facing public reprimands on Slack. The company experienced significant employee turnover, partly due to its relocation from London to San Francisco. Some employees reported not receiving back pay after leaving, and there are claims of a high-pressure culture with little regard for work-life balance. Despite these challenges, 11x insists on improvements in product performance and customer retention, though skepticism remains among former employees and potential investors.

Key takeaways:

  • 11x has faced financial struggles and customer dissatisfaction, with many early customers discontinuing use due to product issues and unrealistic expectations.
  • The company has been accused of using fake customer endorsements, with some companies threatening legal action over unauthorized logo use.
  • 11x's calculation of annual recurring revenue (ARR) has been criticized for not differentiating between trial periods and long-term customers, leading to inflated growth figures.
  • Employees have reported a stressful work environment with high turnover, long hours, and issues with back pay, contributing to a negative company culture.
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