ElevenLabs, a New York-based AI voice technology startup, has raised $250 million in a Series C funding round at a valuation between $3 billion and $3.3 billion.
The round was reportedly led by ICONIQ Growth, with participation from other investors, including Andreessen Horowitz, who previously supported the company’s $80 million Series B in early 2024.
This funding highlights the rapid growth of ElevenLabs, whose advanced AI audio tools have attracted widespread adoption and investor interest.
Founded in 2022 by childhood friends Mati Staniszewski and Piotr Dabkowski, ElevenLabs leverages synthetic voice technology for applications like voice cloning, dubbing, and text-to-speech services. Inspired by their experiences with low-quality dubbing, the founders developed AI-driven tools to enhance multimedia experiences.
Their technology, available through an API and priced across various tiers, serves diverse industries, from publishing to gaming. Notable clients include Synthesia, Washington Post, HarperCollins, and Bertelsmann, with over 36 companies reportedly using ElevenLabs’ tools for content creation.
The company’s revenue growth has been remarkable, with annualized recurring revenue (ARR) rising from $25 million in 2023 to approximately $90 million by late 2024.
Despite facing competition from startups and giants like Google and OpenAI, ElevenLabs has established itself as a leader in generative AI voice technology. The company’s valuation multiple, estimated at 37 times ARR, underscores its potential in a booming market.
ElevenLabs has also addressed ethical concerns by introducing safeguards and detection tools to prevent misuse of its technology, such as the creation of fake news.
As generative AI evolves, the company continues to innovate, developing solutions that integrate sound, video, and text-based services. This latest funding round further solidifies ElevenLabs’ position as a key player in the growing AI voice technology sector, highlighting the industry’s increasing relevance and demand across global markets.
