AI startup ElevenLabs announced on Wednesday it had raised $500 million at an $11 billion valuation, as it eyes a potential IPO.
Sequoia Capital led the round, with participation from existing backers Andreessen Horowitz and Iconiq, as well as new investors Lightspeed Venture Partners, Evantic Capital, and Bond.
The raise more than triples the $3.3 billion valuation ElevenLabs hit after a $180 million Series C in January 2025. Cofounder Mati Staniszewski said Nvidia had invested in the company in September.
Founded in 2022, the London-based company initially developed AI text-to-speech models, before expanding into areas such as speech-to-text, sound effects, dubbing, music and conversation.
It sells products enabling enterprises to deploy voice and chat agents, as well as a platform for brands and creators to generate and localise audio, used by the likes of publisher Time and chip giant Nvidia.
Tech giants like Meta and Salesforce use its voice infrastructure to develop products and experiences, ElevenLabs said.
The company closed 2025 with over $330 million in annual recurring revenue, it said, driven by enterprise adoption by companies including Deutsche Telekom and Revolut.
“This funding helps us go beyond voice alone to transform how we interact with technology altogether,” said cofounder Mati Staniszewski in a statement, adding that the company was building towards an IPO.
He added that the company intended to expand its offering to creators, “enabling businesses to build agents that can talk, type, and take action.”
ElevenLabs said it would continue international expansion. It has offices across Europe, as well as in Brazil, Mexico, India, South Korea, Japan and the U.S.
AI startup funding is at record levels
Funding for AI startups hit record levels in 2025, as investors bet big on the tech’s transformational impact.
European AI startups raised a record $21.6 billion in 2025, according to deal-counting platform Dealroom.
Two of the biggest rounds were for French AI model builder Mistral, which raised 1.7 billion euros and UK AI infrastructure company Nscale, which raised $1.1 billion.
German defence tech Helsing also picked up 600 million euros in 2025, and UK AI avatar startup Synthesia raised $200 million in January.
U.S. AI startups raised $164.6 billion in 2025, per Dealroom, driven by around $70 billion funding for OpenAI, Anthropic and xAI.
In January, CNBC reported that Amazon could invest up to $50 billion in OpenAI.