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a16z- and Benchmark-backed 11x has been claiming customers it doesn’t have
- AI-powered sales automation startup 11x, backed by a16z and Benchmark, has faced financial struggles due to issues of its own making, as reported by investors and employees.
- The lead Series B investor, Andreessen Horowitz, denied rumors of considering legal action against 11x.
- 11x offers an AI bot for outbound cold sales but encountered customer issues such as product malfunction and misrepresentation of customer endorsements.
- Companies like ZoomInfo and Airtable disputed being 11x customers and threatened legal action over the use of their logos without permission.
- Employees described a stressful work environment, significant churn rate, and shady tactics by 11x in reporting annual recurring revenue.
- 11x faced criticism over the quality of its product, with customers reporting issues like hallucinations, billing problems, and underwhelming performance.
- The company's aggressive tactics, lack of transparency, and high-pressure work culture led to employee turnover and concerns about overdue back pay.
- Despite claiming improvements in product quality and customer retention, 11x continues to face scrutiny over its business practices and customer relationships.
- Investors and employees highlighted discrepancies between 11x's reported growth metrics and the actual customer satisfaction levels.
- The company's questionable practices, including exaggerating customer numbers and using misleading endorsements, have raised concerns within the industry.
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