11x, an AI sales automation startup, initially generated significant buzz after its launch. However, its current situation is far from promising. Multiple investors and current/former employees reveal that 11x is facing a severe financial crisis, primarily due to internal management issues.
Image Source Note: Image generated by AI, licensed through Midjourney
Founded in 2022 by Hasan Sukkar, 11x focuses on developing an AI sales representative tool to assist businesses with lead identification, customized message creation, and sales call scheduling. In 2022, the company claimed to be nearing $10 million in Annual Recurring Revenue (ARR) within two years and relocated from London to Silicon Valley last July, subsequently securing funding from investors including Benchmark.
However, several current and former employees point out that many early customers utilized contract cancellation clauses to discontinue using 11x's product. Reasons cited include underperforming email functionality and inaccurate information generated by the AI. This resulted in a customer churn rate as high as 70-80%. Furthermore, several companies listed as clients on 11x's website have explicitly denied any business relationship with the company, including ZoomInfo and Airtable, who have expressed strong dissatisfaction with 11x's false advertising and threatened legal action.
Regarding management, employees generally describe a stressful work environment with 60-hour workweeks. Founder Sukkar's frequent social media messages demanding employee availability have significantly increased employee pressure. Some employees reported facing harsh criticism even when taking leave.
Despite this, 11x maintains that its reported ARR figures are verified through customer contract reviews and that most mid-sized clients are eligible for free trials. Regarding product performance, some clients reported that the product failed to meet expectations, leading them to cancel their subscriptions after short trial periods.
Overall, while 11x initially attracted significant capital, internal management issues, product quality concerns, and high customer churn rates cast a shadow over the startup's future.
Key Takeaways:
📉 11x faces a financial crisis due to customer churn and false client claims.
⚖️ Several companies threaten legal action against 11x for falsely using their logos.
💼 Internal management is chaotic, leading to significant employee stress.
