When the AI startup Factory had just 30 employees, chief executive Matan Grinberg made an unusual investment in his workforce. Instead of spending on flashy office perks, he bought a $3,000 Eight Sleep mattress cover for every employee. Grinberg said better rest translates into better performance and compared engineers to professional athletes who need proper recovery. He believes quality sleep improves focus, creativity and decision-making. The company has since grown to around 120 employees and raised $150 million from major investors. Yet Grinberg still sees sleep and wellness as core to productivity rather than luxury benefits.
Factory CEO chose sleep over flashy perks
Grinberg first discussed the benefit on the “20VC” podcast before explaining his thinking to Business Insider. He said he wants employees to get the most out of their mental abilities and sees proper rest as an important ingredient for high-quality work. Rather than measuring dedication through long hours, he believes sustainable performance matters more.His approach reflects a wider shift in Silicon Valley. The era of extravagant perks and office entertainment has faded as founders increasingly focus on health, recovery and long-term productivity. Companies are spending more on benefits that support physical and mental wellbeing rather than perks that simply make workplaces look fun.The Eight Sleep covers use water-based temperature regulation to heat or cool the bed throughout the night. Couples can customise each side independently and newer versions include adjustable elevation features. The system also tracks sleep metrics and automatically adapts temperature settings.Sleep temperature has become an area of scientific interest. A 2024 study published in the journal Bioengineering found that temperature-controlled mattress covers improved sleep quality and cardiovascular recovery in some participants. Another study published in 2025 in Bioengineering and Translational Medicine reported improvements in subjective sleep quality, thermal sensation and comfort among users, although objective sleep measures changed little. Together, the findings suggest that regulating bed temperature can enhance the overall sleep experience.
Factory has expanded rapidly since its founding
Founded in 2023, Factory has grown into a company with about 120 employees. In April, the startup raised $150 million from investors including Khosla Ventures, Sequoia Capital and Blackstone. The company operates in the highly competitive AI sector where attracting top engineering talent has become increasingly important.The mattress covers were purchased when the company had only 30 employees. Newer hires have not yet received the devices, but Grinberg said he is considering turning the benefit into a standard offering or replacing it with a health stipend. Such programmes are becoming more common as startups compete with larger companies for skilled workers.
Wellness matters more than lavish perks
Grinberg said he has no desire to recreate the lavish culture once associated with Big Tech. He also rejects the idea that employees should prove themselves through extreme work schedules. According to him, neither approach leads to the best results.His focus extends beyond sleep. He limits processed sugar in the office and spends more on healthier options such as protein chips and canned matcha. Similar ideas are spreading across the technology sector. The CEO of fitness company Whoop previously offered financial rewards to employees who maintained high sleep scores. Wellness is increasingly being viewed as a business strategy rather than just an employee perk.
Better sleep may lead to better work
Grinberg admits he cannot measure exactly how much productivity improved after giving employees the devices. He also stressed that he has no plans to monitor sleep data or become “too big brother”. Employees appreciated the gift and the company jokes that it has not reached the stage where someone says, “Billy didn’t sleep well, so don’t trust his code today.”