Listen Labs has reportedly abandoned a signed financing that valued it at $1.5 billion while Salesforce explores buying the AI customer-research startup for around $2 billion, potentially turning a January valuation of roughly $500 million into a fourfold mark in less than eight months.
TechCrunch reported that Listen Labs signed a term sheet for a $125 million Series C at a $1.5 billion valuation, with Menlo Ventures expected to lead, but the round never closed. According to the outlet, Listen Labs subsequently walked away from the signed term sheet.
Separately, Business Insider reported Wednesday that Salesforce has held talks to acquire Listen Labs for around $2 billion, citing people familiar with the matter. The discussions are not finalized and could still end without a transaction.
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The numbers put a steep price on the startup’s growth. The Information reported that Listen Labs was recently generating approximately $30 million in annualized revenue. At a $2 billion transaction value, that would imply a multiple of roughly 66.7 times annualized revenue.
Listen Labs entered the year at a substantially lower valuation. The company announced a $69 million Series B on January 14, led by Ribbit Capital, bringing total equity financing to $100 million. Business Insider reported that the round valued Listen Labs at approximately $500 million.
At the time, Listen Labs said its annualized revenue had increased 15-fold in nine months and that its platform had conducted more than one million interviews.
For Salesforce, the talks would add another AI asset to its enterprise software portfolio. For Listen Labs, the unusual decision to abandon a signed $1.5 billion financing now sits against the prospect of a substantially higher strategic valuation.
However, no acquisition agreement has been announced.
