ElevenLabs raises funding at $3.3B valuation for voice AI tech

Artificial intelligence voice cloning startup ElevenLabs has secured $180 million in Series C funding, reaching a $3.3 billion valuation.

Funding details: The latest investment round was jointly led by Andreessen Horowitz and Iconiq Growth, with participation from several new and existing investors.

• NEA, World Innovation Lab, Valor, Endeavor Catalyst Fund, and Lunate joined as new investors
• Existing investors, including Sequoia Capital, Salesforce Ventures, and Smash Capital, increased their investments
• The company has now raised a total of $281 million since its founding in 2022

Company background: ElevenLabs, headquartered in London, specializes in developing advanced voice AI technology that can generate different languages, accents, and emotions.

• The company was co-founded by former Google employee Piotr Dabkowski and ex-Palantir Technologies worker Mati Staniszewski
• Their technology enables digital interactions through natural-sounding voice generation
• In 2024, they expanded their product lineup to include speech generation, voice design, and AI-driven dubbing in 32 languages

Strategic partnerships: ElevenLabs has established collaborations with major media organizations and gaming companies.

• Notable publishing partners include The New Yorker, The Washington Post, and The Atlantic
• Gaming industry partnerships feature studios like Paradox and Cloud Imperium Games
• These partnerships demonstrate the technology’s practical applications across different industries

Future developments: The new funding will support ElevenLabs’ expansion into more sophisticated voice AI capabilities and product development.

• Research will focus on creating more expressive and controllable voice AI systems
• The company plans to develop new products and expand tools for developers and businesses
• CEO Mati Staniszewski emphasizes the goal of making digital interactions as natural as regular conversations

Market implications: The substantial investment in ElevenLabs reflects the growing interest in generative AI technologies, particularly following OpenAI’s ChatGPT success.

• The tripling of ElevenLabs’ valuation indicates strong investor confidence in voice AI technology
• This funding round positions ElevenLabs as a significant player in the evolving AI voice synthesis market
• The investment suggests a broader trend of accelerating development in specialized AI applications

Looking ahead: While ElevenLabs has shown impressive growth and secured significant funding, the voice AI market remains highly competitive and rapidly evolving. The company’s ability to maintain its technological edge while addressing potential ethical concerns around voice cloning will be crucial for its long-term success.