What did TechCrunch report about 11x in March 2025?
TechCrunch reported that 11x had been claiming customers it didn't have, and its sources alleged that 11x counted revenue in a way that flattered its growth. The article, by reporters Dominic-Madori Davis and Marina Temkin, was published on 24 March 2025. It drew on nearly two dozen sources, including investors and current and former employees. These are allegations from named and unnamed sources, and 11x disputed several of them.
TechCrunch described 11x's product as an AI bot for outbound cold sales: identifying prospects, writing custom messages and scheduling sales calls. 11x was founded in 2022 by Hasan Sukkar, then its CEO. The company said it approached $10 million in annualised recurring revenue (ARR) two years after launch. It moved from London to Silicon Valley in July 2024, announced a $24 million Series A led by Benchmark in September 2024, and raised a $50 million Series B led by Andreessen Horowitz (a16z) later that month.
The report's main allegations, and 11x's answer to each, as TechCrunch published them:
| Allegation | Who said it, per TechCrunch | 11x's response, per TechCrunch |
|---|---|---|
| Logos on 11x's website included companies that were not customers | ZoomInfo and Airtable spokespeople; one company that asked not to be named | It removed undesired or inaccurate customer mentions when asked; where it didn't, in a small number of cases, it was human error |
| ARR counted full-year contracts that customers could leave, typically after three months, even after they left | Current and former employees; a prospective customer described the break clause as a trial | It reports contracted ARR (CARR) to its board, investors knew, and they reviewed contracts in due diligence |
| High churn: one employee said 11x was losing 70 to 80% of customers who came through the door | Multiple employees | Its highest churn was in initial cohorts in late 2023; it put current retention at 79% |
| The product underdelivered: emailing not working as expected, hallucinations, a product that would not load | Current and former employees; a company that tried the product | It believes the product outperforms human SDRs, results depend on the quality of user input, and it does not guarantee savings or revenue |
| A hard workplace: weeks of at least 60 hours expected; one former employee still awaiting back pay | Current and former employees | Turnover came from the move from London to San Francisco; headcount had doubled to 50 full-time employees |
Several people also told TechCrunch that a16z, the lead Series B investor, might consider legal action. An a16z spokesperson denied it, telling TechCrunch that a16z is not suing.
What did ZoomInfo and Airtable tell TechCrunch?
Both told TechCrunch they were not customers and had not given 11x permission to use their logos. TechCrunch noted that customer logos on a startup's website signify endorsements and are typically shown with the customer's consent.
- ZoomInfo ran a short, one-month trial of 11x's AI SDR from mid-January to mid-February, its spokesperson said. The product performed significantly worse than ZoomInfo's own SDR employees, and ZoomInfo did not move forward afterward. The spokesperson said 11x had claimed ZoomInfo as a customer since November 2024 in sales calls, on its website and on its AI dialer, and that ZoomInfo had spent four months demanding that it stop.
- The logo stayed up. TechCrunch said the ZoomInfo logo wasn't removed until after 6 March 2025, when a source close to TechCrunch asked about it, and that 11x's phone AI agent kept repeating the customer claim after that date.
- Legal threat. In an email to Sukkar seen by TechCrunch, ZoomInfo's lawyer threatened legal action and listed several possible causes of action, including deceptive trade practices, trademark infringement, misappropriation of goodwill and false advertising.
- Airtable said it ran a very short trial in late 2024, decided the product wasn't a fit, and never used it in production or rolled it out to its sales team. TechCrunch found 11x's website still naming Airtable as a customer on 20 and 21 March 2025.
TechCrunch also said some customer claims were legitimate: Pleo and Rho confirmed they were using 11x products.
How did 11x count ARR, according to its staff?
According to current and former employees, 11x counted a full year of revenue for contracts that worked like three-month trials. A prospective customer told TechCrunch that 11x insisted prospects wanting a pilot sign a one-year contract. 11x offered a break clause, typically at three months, that made it easy to exit, and former employees said this worked as a trial period.
When reporting ARR, former and current employees said, the company didn't separate trial periods from long-term customers and calculated ARR on the full year. Some said it kept counting the full year after customers had used the break clause and stopped paying. One employee gave an example: the company might say it had $14 million in ARR when contracts that had passed the three-month trial period totalled only about $3 million.
Venture capitalists cited by TechCrunch said the issue was disclosure: investors expect startups to disclose potential opt-out revenue and customer churn. A Benchmark spokesperson said Benchmark had received transparent updates from 11x, including about the break clauses.
The terms matter. Here is how a16z, an 11x investor, and Bessemer Venture Partners define them:
| Term | Definition | Source |
|---|---|---|
| Bookings | The value of a contract between the company and the customer | a16z, 16 Startup Metrics (21 August 2015) |
| Revenue | Recognised when the service is provided, or ratably over the subscription | a16z, same post |
| ARR | Recurring revenue only, excluding one-time and professional service fees | a16z, same post |
| CARR (committed ARR) | ARR plus committed contracts that are not yet live, net of forecasted churn or downsell | Bessemer Venture Partners, Scaling to $100 Million (21 September 2021) |
By Bessemer's definition, CARR nets out forecasted churn or downsell. TechCrunch did not report how 11x calculated its CARR, so we do not measure 11x's figures against these definitions.
How did 11x respond?
11x disputed the picture and gave TechCrunch its own figures. Its main statements, as TechCrunch reported them:
11x also told TechCrunch that:
- It offers free trials, and the majority of middle market customers qualify. Some enterprise customers with highly specialised, customised needs require a 12-month contract with an opt-out after three months.
- Its highest churn came from initial cohorts in late 2023. Product improvements and selling to its ideal customer have improved retention, which it put at 79%.
- It believes its product outperforms human SDRs, but performance relies on the quality of user input, and it does not guarantee savings or revenue in its sales pitches.
- A negative review of the product on Medium was written by a competitor.
Sukkar also answered personally. Bloomberg Law reported on 5 May 2025 that Sukkar had strongly denied the allegations in a separate post the previous month.
What happened after the report?
Six weeks after the report, Sukkar stepped down as CEO and 11x's chief technology officer took over. These are the dated developments in the sources we opened:
| Date | What happened | Source |
|---|---|---|
| March 2025 | a16z partner Joe Schmidt publicly backed the company and its CEO on X; Benchmark's Sarah Tavel, an 11x board member, also posted support on X (TechCrunch gives no date for Tavel's post) | TechCrunch, 5 May 2025 |
| 5 May 2025 | Sukkar announced on LinkedIn a move from CEO to non-executive chairman; CTO Prabhav Jain was named CEO | TechCrunch, 5 May 2025 |
| 5 May 2025 | Sukkar's announcement did not address the allegations | Bloomberg Law |
| 6 May 2025 | Tech.eu reported that Jain joined 11x in 2024, previously worked at Brex and had founded startups before | Tech.eu |
| 22 May 2026 | TechCrunch reported that founders and investors say AI startups commonly announce contracted or committed ARR as plain ARR; the article does not name 11x | TechCrunch, 22 May 2026 |
In May 2025, an 11x spokesperson framed the leadership change as putting the right person in the CEO role for a new growth phase, and said the company now powers hundreds of go-to-market teams. That is the company's own claim. TechCrunch put 11x's total funding at more than $70 million.
The May 2026 report does not mention 11x; it covers AI startups that announce contracted ARR as plain ARR. One VC told TechCrunch of companies where CARR was 70% higher than ARR, even though a significant chunk of that contracted revenue would never materialise.
What to ask an AI SDR vendor before you sign
Ask for live numbers, written definitions and customers you can call. These questions follow from the allegations in the 11x report. They are our advice for a small team buying its first AI SDR:
| Ask the vendor | Why, from the 11x report |
|---|---|
| Is your headline revenue ARR or contracted ARR, and what is the other number? | 11x reported CARR to its board; staff alleged trials were counted as full years |
| Can I speak to two customers who passed their opt-out date? | Pleo and Rho confirmed use; ZoomInfo and Airtable said they only trialled |
| What share of trials became paying customers last quarter? | One employee alleged 70 to 80% of customers were lost; 11x said retention was 79% |
| What exactly do I get in a pilot, and can I leave without a one-year contract? | A prospective customer said 11x was adamant about one-year contracts for pilots; 11x said the majority of middle market customers qualify for free trials |
| What results should I expect, in writing? | A former employee said salespeople told prospects to expect a sizable uptick in meetings, which staff believed unrealistic; 11x said it does not guarantee savings or revenue in its sales pitches |
For what AI SDRs can realistically do, see do AI SDRs work?, and for what they cost, how much an AI SDR costs.
A checklist for reporting AI SDR results honestly
Report what customers pay today, show logos only with written permission, and publish how many trials become paying customers. This list applies to every AI SDR vendor, and that includes Siela, which sells an AI SDR that competes with 11x. Siela has no customer counts, revenue or reply rates to cite yet; when it does, they should pass this list.
Put live revenue next to contracted revenue
If you quote CARR, quote ARR in the same sentence and label each. Say how much contracted revenue is still inside an opt-out window.
Get logo permission in writing
Keep a one-line log per logo: company, who approved, date. Treat a trial as a trial, never a customer. Remove a logo the day a company asks.
Clean every channel, not just the website
ZoomInfo said 11x made the claim in sales calls, on its website and on its AI dialer. When a customer leaves, update the deck, the site, chat scripts and any AI agent's prompt the same day.
Publish trial-to-paid with its definition
State the period, how many trials started, and how many were paying after the opt-out date. For example: trials started 1 April to 30 June, counted as paid 30 days after the opt-out date.
Date and size every result
Write results as a number, a base and a date range, such as replies divided by people contacted between two dates. If the base is small, say so.
If you are comparing vendors now, our 11x alternatives page is a starting point. Ask each one for the numbers on this checklist.
Frequently asked questions
Did 11x claim customers it didn't have?
TechCrunch reported on 24 March 2025 that ZoomInfo and Airtable, both shown on 11x's website, said they were not customers and had only trialled the product. A third company told a similar story anonymously. Pleo and Rho confirmed they used 11x. 11x said it removed inaccurate customer mentions when asked and blamed human error in a small number of cases. These remain allegations reported by TechCrunch.
What is the difference between ARR and contracted ARR?
ARR counts recurring revenue only, excluding one-time and professional service fees, in a16z's 2015 definition. Bessemer Venture Partners defined committed ARR (CARR) in 2021 as ARR plus committed contracts that are not yet live, net of forecasted churn or downsell. Because CARR includes those not-yet-live contracts, any public figure should say which one it is.
Is ZoomInfo suing 11x?
TechCrunch reported in March 2025 that ZoomInfo's lawyer had threatened legal action in an email to Hasan Sukkar, naming possible claims including deceptive trade practices, trademark infringement and false advertising. The reports we opened, up to May 2025, describe a threat, not a filed lawsuit. Separately, an a16z spokesperson told TechCrunch that a16z was not suing 11x.
Who became CEO of 11x after Hasan Sukkar?
Prabhav Jain, 11x's chief technology officer, was named CEO on 5 May 2025, when Sukkar announced on LinkedIn a move to non-executive chairman. Tech.eu reported that Jain joined 11x in 2024, previously worked at the spend platform Brex and had founded startups before.
What retention rate did 11x report in 2025?
11x told TechCrunch in March 2025 that its retention rate was currently 79%, and that its highest churn came from initial customer cohorts in late 2023. One employee told TechCrunch the company was losing 70 to 80% of customers who came through the door. TechCrunch did not say how either figure was calculated.
Sources
- TechCrunch: a16z- and Benchmark-backed 11x has been claiming customers it doesn't have (published 24 Mar 2025)
- TechCrunch: 11x CEO Hasan Sukkar steps down (published 5 May 2025)
- Bloomberg Law: Andreessen-Backed AI Bot Startup 11x Replaces CEO Sukkar (published 5 May 2025)
- Tech.eu: Founder of a16z-backed 11x steps down as CEO (published 6 May 2025)
- TechCrunch: How VCs and founders use inflated 'ARR' to crown AI startups (published 22 May 2026)
- a16z: 16 Startup Metrics (published 21 Aug 2015)
- Bessemer Venture Partners: Scaling to $100 Million (published 21 Sep 2021)
- Siela: 11x alternatives (checked 20 Oct 2026)