Listen Labs, a market research startup using voice AI to conduct customer interviews, canceled a $125 million Series C at a $1.5 billion valuation after signing a term sheet with Menlo Ventures. The round's collapse likely resulted from acquisition talks with Salesforce, which reportedly discussed buying Listen Labs for around $2 billion. The startup, founded in 2023 by Florian Jüngermann and Alfred Wahlforss, generates $30 million in annual revenue and serves clients like Microsoft, Canva, and Anthropic. Its technology automates customer interviews, reducing time and cost compared to traditional market research.

The company's valuation dropped after Simile, a competitor, set a $2 billion valuation with its $200 million Series B led by Greenoaks in late July. VCs expect Listen Labs to return to market seeking $2 billion or higher if Salesforce talks fail. While Salesforce aims to enhance its AI capabilities through Listen Labs' technology, it may avoid a 67x revenue multiple valuation. Competitors include Simile, Outset, Keplar, and Aaru, with some using synthetic AI to simulate responses.

Listen Labs was co-founded by Florian Jüngermann, a former German programming champion, and Alfred Wahlforss, ex-founder of Bemlo. The startup's AI creates survey questions, conducts audio/video interviews, and delivers reports and PowerPoint presentations. Its customers include Microsoft, Canva, Anthropic, and Sweetgreen, reflecting strong adoption in Fortune 500 markets.