ElevenLabs in Talks for $11B Valuation Amid $330M ARR
ElevenLabs is in talks for funding at an $11 billion valuation, following a $330 million ARR milestone, with backing from Nvidia.
ElevenLabs in Funding Talks at $11 Billion Valuation
London-based AI voice startup ElevenLabs is reportedly in advanced discussions for new funding that could value the company at $11 billion. This positions it as potentially the UK's top AI startup by valuation, with backing from Nvidia and other investors. This development follows CEO Mati Staniszewski's announcement that the firm surpassed $330 million in annual recurring revenue (ARR) in 2025, highlighting explosive growth in enterprise adoption of its synthetic voice technology (Financial Times).
The funding talks, initially reported by the Financial Times, reflect ElevenLabs' rapid ascent from its 2022 founding to a multi-billion-dollar contender in the voice AI space. Nvidia's involvement underscores the hardware giant's strategic push into AI audio applications, aligning with its dominance in GPUs critical for training voice models. Staniszewski announced the ARR figure on January 13, 2026, in San Francisco, emphasizing deployments by Fortune 500 firms handling over 50,000 calls per month via ElevenLabs' voice agents (TechCrunch).
Explosive Growth Trajectory
ElevenLabs' path to $330 million ARR is a masterclass in hypergrowth. Founded in 2022 by Polish entrepreneurs Mati Staniszewski and Piotr Dąbkowski, the company launched its first product in 2023. It achieved $100 million ARR in 20 months, doubled to $200 million in the next 10 months, and hit $330 million in just five more, per CEO statements. This pace dwarfs incumbents: SaaS leader Twilio took eight years to reach similar ARR levels, despite a market cap once exceeding $50 billion (SaaStr).
Funding History
| Round | Date | Amount | Valuation | Lead Investors |
|---|---|---|---|---|
| Series A | Jun 2023 | Undisclosed | $100M | a16z |
| Series B | Jan 2024 | Undisclosed | $1.1B | - |
| Series C | Jan 2025 | $180M | $3.3B | a16z, ICONIQ |
| Secondary | Sep 2025 | $100M | $6.6B | ICONIQ, Sequoia |
Projections suggest a $13 billion valuation in early 2026, potentially climbing to $20 billion by year-end—a 66x increase from Series A in under three years.
Product Evolution
ElevenLabs' core technology leverages deep learning to convert text to natural speech, capturing linguistic patterns, emotions, and acoustics for hyper-realistic output. Beyond basics, it now offers:
- Voice Agents: Conversational AI for support, powered by company data.
- AI Dubbing: Real-time video translation in 29 languages.
- ElevenLabs Music: Text-to-music generation, launched August 2025.
- Celebrity Voices: Partnerships with Michael Caine and Matthew McConaughey.
- Enterprise Marketplace: Commercial voice licensing.
Twilio integrates ElevenLabs' synthesis directly, validating cross-industry reliance (TechCrunch).
Competitor Landscape
ElevenLabs faces stiff competition. Deepgram raised $130 million at a $1.3 billion valuation in late 2025. Tech giants like Google's WaveNet, Amazon's Polly, and Microsoft's Azure Speech Services offer scalable alternatives. Yet ElevenLabs differentiates via superior emotional expressiveness and enterprise focus, powering 50,000+ monthly calls where rivals lag in naturalness.
Strategic Timing
The funding push aligns with voice AI's inflection point. Post-ChatGPT hype, enterprises demand multimodal AI—voice agents reduce support costs by 80% in pilots. Regulatory tailwinds in Europe favor UK firms like ElevenLabs, while U.S. demand surges for dubbing amid global content explosion. Nvidia's backing ties to AI chip shortages, positioning ElevenLabs for optimized inference. Celebrity deals mitigate deepfake fears, building trust.
Broader Implications
This round could fuel global expansion, challenging U.S. dominance. At $11 billion, ElevenLabs joins OpenAI/Anthropic ranks, validating voice as AI's next frontier. Success hinges on monetizing music/agents amid competition, but $330 million ARR proves product-market fit.
