Voice AI startup ElevenLabs, which launched in early 2022, has reached explosive heights. Last year, it cleared a stunning $330 million in annual recurring revenue (ARR). This accomplishment represents a big step forward for the company. There’s a reason that it launched its first product just a year after its inception. The remarkable trajectory is a testament to the burgeoning demand for voice generation technology across sectors and industries.
This new company’s success can be credited to a few key strategic moves and groundbreaking new product lines. Earlier this year, ElevenLabs released music creation capabilities, shifting its forte from pure voice generation. This shift has caught the imagination of all kinds of industries, from film to hospitality.
Beyond its product innovations, ElevenLabs made headlines by inking exclusive agreements with high-profile A-listers like Michael Caine and Matthew McConaughey. The collaborations allow these stars to be featured in AI-generated content. Combining both of these collaborations greatly increases the company’s attractiveness and extends its market reach.
Enterprises have started implementing ElevenLabs’ technology at an enterprise scale, automating upwards of over 50,000 calls per month. This gives a real-world, practical example of how their products can be used in everyday life, especially when it comes to customer service through automated communication.
In only 20 months, ElevenLabs ascended to $100 million in Annual Recurring Revenue (ARR). They then filled that gap with an extraordinary jump to $200 million within just 10 months! Fast forward just five months and the encrypted messaging and payments company boasted an enviable $330 million ARR. This milestone serves as a reminder of its quickly increasing trajectory.
Funding has also proven hugely significant in bolstering ElevenLabs’ rapid growth. Iniciativa exemplificada In June 2022, the company announced $180 million in Series C funding, co-led by a16z and ICONIQ Growth. This latest round of investment put ElevenLabs’ valuation at $3.3 billion. Eight weeks after the pitch deck was delivered, the company’s valuation had increased by 2x. ICONIQ and Sequoia also invested $100 million to buy employee shares.
Mati Staniszewski, CEO of ElevenLabs, commented on the company’s impressive growth:
“Really, what this [growth in ARR] shows is that trajectory across the company. We started the company in 2022 and launched the first product in 2023. It took us 20 months to reach $100 million in ARR, 10 months to reach $200 million, and five months to reach the current number.”
As ElevenLabs pushes the envelope with new features and tools, its influence on the broader voice AI landscape is profound. Between enterprise adoption and celebrity partnerships, blockchain is in a bit of a renaissance. Equally important, strong funding positions the company for even more success over the next few years.