ElevenLabs Raises $250 Million in Series C Funding for AI Voice Technology

ElevenLabs, the startup behind AI voice technology, has secured a massive $250 million in Series C funding at a valuation between $3 billion and $3.3 billion. The round is led by ICONIQ Growth, with Andreessen Horowitz also expected to participate.

The New York-based company, founded in 2022, has seen significant growth in demand for its AI audio technology, with plans to announce the round officially in the near future. The company, established by Mati Staniszewski and Piotr Dabkowski, has gained attention for its synthetic voice technology including voice cloning and dubbing tools. The company has faced controversies over misuse but has developed detection tools to address these issues.

The technology, available through an API, covers various use cases including voice translation, voice cloning, and voice editing tools. Its clients include Syntheisa, Washington Post, HarperCollins, Bertelsmann, and gaming companies. 

The company's annualized recurring revenue has surged from $25 million in 2023 to an estimated $90 million, contributing to its substantial valuation. However, its valuation multiple of 37 times ARR remains relatively moderate compared to other generative AI companies. The competitive landscape includes both startups and industry giants such as Google and OpenAI. 

Notable past backers of the company include Sequoia, Credo Ventures, and Salesforce Ventures, among others.

Source: Tech Crunch