On January 30, 2025, ElevenLabs announced it has successfully raised $180 million in Series C funding, increasing its total capital to $281 million since its launch in 2022. This funding round was co-led by prestigious investors A16Z and ICONIQ Growth, with significant participation from new investors, including NEA, World Innovation Lab (WiL), Valor, Endeavor Catalyst Fund, and Abu Dhabi-based Lunate. Existing investors such as Sequoia Capital, Salesforce Ventures, Smash Capital, SV Angel, NFDG, and BroadLight Capital are also increasing their stakes. The growth of ElevenLabs, particularly known for its synthetic voice technology, reflects the burgeoning interest and demand for AI-driven audio solutions.
Valuing the company at $3.3 billion post-money, this fundraising effort confirms rumors first reported by TechCrunch. The funding will empower ElevenLabs to expand its audio tools and boost business development initiatives. Mati Staniszewski, the CEO and co-founder, explained the startup’s focus on creating more expressive audio AI models and developing 'omni-models' which integrate text-based systems with audio for enhanced multimodal interactions.
There has been considerable investor excitement around ElevenLabs, fueled by two significant trends: the explosion of generative AI technology and ElevenLabs’ rise as a leading player within the synthetic voice sector. Numerous major media and gaming publishers, as well as several tech startups, are leveraging ElevenLabs’ technology to enrich their voice and audio features, showcasing the company’s technological prowess and market relevance.
This funding round’s list of backers also brings strategic investors such as Deutsche Telekom, LG Technology Ventures, HubSpot Ventures, NTT DOCOMO Ventures, and RingCentral Ventures, who use ElevenLabs technology and are now seeking to invest directly. ICONIQ partner Seth Pierrepont will join ElevenLabs’ board, alongside current board members from A16Z and the co-founders. Ichon has been ramping up investment efforts around generative AI startups, reflecting the growing interest and potential within this rapidly transforming sector.
Reflecting on the audio modality's potential, Pierrepont noted, "We have always felt audio is very important modality, and we thought there will be very big company built in this category." His comments underline the strategic vision of the investors who see significant opportunities for growth within the AI audio space, as businesses increasingly seek innovative ways to communicate with customers.
Looking back, it’s impressive to see ElevenLabs’ growth, raising $80 million just last year during its Series B round, which valued the company at around $1 billion. Staniszewski mentioned their plans to leverage this fresh funding to amplify their innovative approach to conversational AI. With last year’s introduction of the AI conversational agent platform, the company aims to enrich user experiences using AI-driven interactions, including improved speech-to-text capabilities.
"We want to understand what’s being said by you... Many people say speech-to-text is solved problem. But for many languages, it is pretty bad," Staniszewski said, illustrating the challenges still to be addressed within AI voice technologies. His commitment to enhancing these systems is indicative of the thorough approach ElevenLabs takes toward innovation.
Another initiative the company has undertaken involves broader partnerships with telecommunication firms to improve conversational AI agents integrated with legacy communications. For example, ElevenLabs has partnered with TIME to launch a conversational bot allowing users to inquire about the publication's Person of the Year. Their vision includes creating user-friendly agents on news websites, facilitating inquiries about story content or summaries.
While recent advancements have improved the quality of AI voice bots, the intricacy of delivering human-like interactions remains elusive. Staniszewski articulately highlighted this issue, stating, "The way I speak to you impacts how you react or respond to me... Current-gen AI solutions are on the verge of being good, but they are not as good as humans."
Despite the incoming waves of funding and excitement, ElevenLabs has encountered challenges, particularly concerning the misuse of its technology. Reports from Recorded Future highlighted its use in misinformation campaigns, including Russian propaganda operations. Instances have emerged where its platform was utilized to create audio deepfakes alleged to include high-profile figures like Joe Biden and others. Staniszewski emphasized the company's dedication to addressing such concerns: "We do treat it as our responsibility to build the right safety mechanism as we build out the technology."
ElevenLabs has implemented strict policies prohibiting unauthorized or harmful impersonation. To help prevent misuse, the firm employs both machine-led and human moderation processes. Staniszewski also noted their commitment to prioritizing safety over rapid deployment or short-term commercial benefits: "We frequently make choices to prioritize safety over speed of deployment or commercial benefit."
Moving forward, ElevenLabs has included provisions to follow industry standards for content tracking, placing digital signatures within its audio products to verify their origin, aiming to combat malicious use proactively. With its innovative solutions and growing customer base, ElevenLabs is poised for continued success within the increasingly competitive AI audio market, ensuring it responsibly navigates the challenges of rapidly advancing technology.