ElevenLabs has announced a significant Series D funding round, raising $500 million at an $11 billion valuation. The round was led by Sequoia Capital, with substantial participation from Andreessen Horowitz (a16z) and ICONIQ Capital, who reportedly quadrupled and tripled their investments, respectively. This substantial capital infusion underscores the growing trust from enterprise clients and partners leveraging ElevenLabs' AI technology at the forefront of innovation. The company anticipates this funding will accelerate its development efforts, particularly within its ElevenAgents conversational AI platform.
ElevenAgents Platform Poised for Growth
The ElevenAgents platform is designed to enhance enterprise customer experiences, bolster revenue teams, and streamline internal operations. ElevenLabs reports that the platform has already been instrumental in its rapid growth, projecting over $330 million in Annual Recurring Revenue (ARR) by the close of 2025. Key clients and partners utilizing the platform include major entities such as Deutsche Telekom, Square, Deliveroo, Revolut, and the Ukrainian government. This latest funding, the ElevenLabs Series D funding, is expected to fuel further expansion of this enterprise-focused offering.
In conjunction with the funding announcement, ElevenLabs is rolling out updates to its conversational model for the Agents Platform. These enhancements include improved speed, a more nuanced understanding and expression of emotion, and an upgraded orchestration system with refined turn-taking capabilities. An alpha version of this new model is available for testing on the company's website. The company also continues to develop ElevenCreative tools for creators, brands, and media companies, aiming to elevate storytelling. ElevenLabs' core research spans text-to-speech, speech-to-text, music generation, dubbing, and advanced conversational models, reflecting its ambition to redefine human-technology interaction. The company, now with 400 employees, remains focused on its mission and future growth, including potential IPO plans. This marks a pivotal moment for the company, building on the foundational work that Mati Staniszewski and his co-founder have driven.
New investors joining the round include Lightspeed Venture Partners, Evantic Capital, and BOND. Existing investors BroadLight Capital, NFDG, Valor Capital Group, AMP Coalition, and Smash Capital also provided continued support. Andrew Reed from Sequoia Capital will join the ElevenLabs board of directors. The company is also bringing on strategic partners, with further details expected in February. This significant ElevenLabs Series D funding positions the company for continued innovation and market expansion.
