AI Sales Startup 11x Accused of Falsifying Customer Claims and Misleading Investors

AI sales automation startup 11x, backed by Andreessen Horowitz (a16z) and Benchmark, is under fire for allegedly misrepresenting its customer base and financial health, according to a new TechCrunch investigation.

Key Allegations Against 11x

🔹 Falsified Customer Endorsements: 11x displayed logos of companies that weren’t actually customers on its website, including ZoomInfo and Airtable, which are now considering legal action.

🔹 Misleading Revenue Metrics: The startup counted short-term trial users as long-term paying customers, inflating its reported $10 million annual recurring revenue (ARR) figure. Former employees say the real number was closer to $3 million.

🔹 High Customer Churn: Reports indicate that 70-80% of customers canceled after trial periods, citing poor performance, hallucinations, and billing issues.

🔹 Toxic Work Culture: Employees described excessive work hours, a high-pressure environment, and public shaming by CEO Hasan Sukkar. Some former employees are still awaiting back pay months after leaving.

Investor and Legal Fallout

Despite rumors of legal action by a16z, the firm has denied any lawsuits against 11x. However, ZoomInfo’s legal team has sent a warning to 11x, accusing the startup of trademark infringement and deceptive trade practices.

What’s Next?

While 11x insists it promptly corrected errors, the controversy raises serious doubts about the company’s credibility and long-term viability in the AI sales space.