Artificial intelligence (AI) startup Factory spent thousands of dollars on an unusual employee benefit last year: sleep technology. The company's CEO, Matan Grinberg, said he purchased $3,000 Eight Sleep mattress covers for every employee when the startup had around 30 staff members. He defended the purchase, saying that better sleep could directly improve focus and performance at work.
Speaking on the "20VC" podcast and later in an interview with Business Insider, Grinberg said the decision was driven by productivity concerns rather than workplace perks. He said, "I want to make sure everyone is squeezing out every ounce of brain power they have. To do that, you need to get good sleep."
Factory, which was founded in 2023, has since grown to around 120 employees. The company raised $150 million in funding in April from investors including Khosla Ventures, Sequoia Capital and Blackstone.
Sleep as a Workplace Benefit
Grinberg compared his engineers to professional athletes, arguing that cognitive performance depends heavily on adequate rest. The Eight Sleep mattress covers use a liquid-based system to regulate bed temperature and can independently adjust the temperature of different sides of the bed. Newer versions also include elevation features.
While some technology companies have historically offered recreational workplace perks, Grinberg said he prefers benefits that directly connect to employee performance and well-being. "The decadence of startups, right?" he said while discussing the mattress cover purchases.
Additional Health Initiatives
He also said that the company limits processed sugar in the office because of concerns about its impact on focus. Instead, the company spends more on alternatives such as protein chips and canned matcha.
"We're not running a daycare. I don't need to mandate certain hours," Grinberg said. He added that he does not support what he described as a "grindslop" culture, where employees publicly emphasise long working hours and intense schedules.
Industry Trends
Factory's approach comes as sleep-focused products and habits have become more common among professionals and technology workers. Devices such as sleep trackers and wearable health monitors have gained popularity in recent years as people seek ways to improve rest and recovery.
Other company leaders have also experimented with sleep-related incentives. In 2024, the CEO of wearable technology company Whoop said employees could receive $100 per month if their average sleep performance exceeded a certain threshold.
Measuring Impact
Grinberg said he has not measured exactly how much productivity improved after providing the mattress covers, but believes the investment was worthwhile. He added that he does not want to monitor employees' sleep habits too closely.
"We joke at the office: Imagine the measure, 'Billy didn't sleep well, so don't trust his code today.' We haven't gone that far," he added. Still, he said he believes the connection between sleep and work performance is clear.
"They're going to be better. They're going to have more of their wits about them. They'll be sharper," Grinberg said about his employees on the podcast.
