Companies looking to incorporate AI voice technology into their products are flocking to ElevenLabs, a startup specializing in synthetic voice solutions such as voice cloning and dubbing tools. With a recent massive Series C funding round, ElevenLabs is scaling up its operations just a year after a significant Series B.
According to multiple sources, the New York-based startup has secured $250 million in its Series C, valuing the company between $3 billion and $3.3 billion. ICONIQ Growth is leading the round, as reported by various insiders. Andreessen Horowitz, a major investor in ElevenLabs’ previous $80 million Series B, is also rumored to be involved in this latest funding round.
Investors have been eager to partner with ElevenLabs following a period of rapid growth, especially with its AI audio technology gaining widespread adoption, as reported by TechCrunch. Initially seeking funding at a $4 billion valuation, ElevenLabs eventually settled for a $3 billion valuation, which is still a significant increase from their Series B valuation a year ago. Official confirmation of the funding round is expected to be announced soon.
Founded in 2022 by Mati Staniszewski and Piotr Dabkowski, both with backgrounds at Palantir and Google, ElevenLabs was born out of a shared dissatisfaction with the quality of dubbing in American videos. With the rise of generative AI services and increasing interest in multimedia applications, the duo saw an opportunity to revolutionize voice technology using AI.
Launching their first beta product in January 2023, ElevenLabs quickly gained attention and raised $19 million in their Series A by June 2023, going viral in the process. With a variety of use cases for their technology, such as voice cloning, translation, and voice editing tools, ElevenLabs has become a go-to partner for businesses across different industries.
Despite some controversies surrounding fake news generated using its technology, ElevenLabs has implemented detection tools and safeguards to prevent misuse. Today, the company’s API is used by a range of businesses, including tech platforms like Syntheisa, publishing giants like Washington Post, HarperCollins, and Bertelsmann, and gaming companies, among others.
The rapid adoption of ElevenLabs’ technology has fueled substantial revenue growth, with annual recurring revenue (ARR) climbing from $25 million in 2023 to an estimated $90 million in recent months. While some companies in the generative AI space are commanding valuations as high as 50 times ARR, ElevenLabs’ more conservative valuation multiple of 37 times ARR reflects the competitive landscape in the industry.
Competing with a mix of startups and industry giants like Google and OpenAI, ElevenLabs has garnered support from investors such as Sequoia, Credo Ventures, Salesforce Ventures, Disney, and several high-profile angel investors.
