On the promise of accelerated development, ElevenLabs today announced it has closed a $500 million Series B funding round that values the company at $11 billion. This huge investment comes right on the heels of a series of down rounds for the company. Beyond that, it shines a light on their fast-pace pedal-to-the-metal innovation in the AI space.
Mati Staniszewski founded ElevenLabs, and the company is continuing to take huge leaps forward in voice technology. It is broadening that focus to include compelling video experiences and advanced AI agents. This change is intended to provide a better user experience by making the process more seamless and cohesive. Staniszewski indicated that the company is poised to work on agents beyond voice, integrating various media to transform technology interactions altogether.
Back in January, ElevenLabs was demonstrating remarkable trajectory. They ended the year with an ARR run rate of $330 million. This performance represented a historic jump from past valuations. Following a $130 million investment from AVP, the company’s valuation skyrocketed to $1.3 billion. The latest funding round sees ElevenLabs now valued at more than three times this amount, reflecting the company’s robust growth momentum.
We’re committed to directing at least 60% of the funds we raise toward research and product development. Beyond that, we hope to go international with markets such as India, Japan, Singapore, Brazil and Mexico. Staniszewski put the company’s rapid growth into context. Within just five months’ time, they grew their ARR from $200 million to $300 million, showing how quickly they’re rising to the top in a very aggressive market.
In addition to its recent funding success, ElevenLabs has partnered with LTX to produce audio-to-video content, further diversifying its offerings. The company plans to disclose new institutional investors and possible strategic partners in mid-February. This acquisition could significantly increase its operational capacity and extend its market reach.
“The intersection of models and products is critical – and our team has proven, time and again, how to translate research into real-world experiences. This funding helps us go beyond voice alone to transform how we interact with technology altogether. We plan to expand our Creative offering – helping creators combine our best-in-class audio with video and Agents – enabling businesses to build agents that can talk, type, and take action.” – Mati Staniszewski
As ElevenLabs continues to innovate and expand its portfolio, the market will likely keep a close watch on its developments. Earlier this year, ElevenLabs sought to raise capital at a $1B+ valuation. The Financial Times covered this landmark development considerably in advance. Add to that, an interview with Bloomberg that shed light on the company’s ambitions and strategic vision for the future.