ElevenLabs Lands $500 Million to Expand AI Voice Platform

Artificial intelligence (AI) voice technology company ElevenLabs has closed a $500 million Series D funding round, boosting its valuation to approximately $11 billion, according to a Wednesday (Feb. 4) press release.

The funding round was led by Sequoia Capital, with participation from Andreessen Horowitz and Iconiq Capital. Earlier last week, PYMNTS reported that the startup raised $180 million in a Series C funding round.

Founded in 2022 and based in London, ElevenLabs specializes in generative AI voice and speech-synthesis technologies that produce highly realistic voice output for a range of applications, including conversational agents, customer service automation and content creation. The company first gained attention for its ability to generate nuanced, human-like audio from text input and has rapidly expanded its product suite to include voice agents and AI music generation tools.

ElevenLabs’ latest funding round marks a significant increase in valuation compared with previous raises. The company has also broadened its customer base to include major corporations and government entities, according to a Wednesday report by the Wall Street Journal (WSJ).

The startup’s AI voice systems are being used by companies such as Deutsche Telekom and Deliveroo, where they support functions like customer support automation and employee onboarding, according to the WSJ. The government of Ukraine has also employed its tools in educational and public engagement initiatives.

The funding follows a period of scrutiny and controversy earlier in ElevenLabs’ history. After its 2023 product launch, some voice actors and industry groups criticized the technology for its potential to clone voices without consent, and the company faced legal challenges over misuse of its tools.

In response, ElevenLabs has pursued licensing agreements with public figures and celebrities, including actor Michael Caine, whose voice has been officially licensed for use in generative applications, and Matthew McConaughey, who has worked with the company to translate his voice into Spanish for distribution.

ElevenLabs has also developed a voice licensing marketplace that allows brands and rights holders to license iconic voices for authorized use, the WSJ reported. The company recently expanded into AI music generation, releasing a collaborative album designed to showcase its audio technologies.

The executive leadership said the new funding will support continued expansion of its AI voice and conversational platform, as well as partnerships across enterprise and entertainment sectors. CEO Mati Staniszewski told WSJ that ElevenLabs aims to grow into a broader conversational AI platform that delivers voice-enabled experiences for business and consumer users alike.

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