In a significant development for the AI voice sector, ElevenLabs successfully closed a $500 million Series D funding round, propelling its valuation to an impressive $11 billion. This marks a dramatic increase from its previous valuation of $3.3 billion just a year ago.
The funding round, led by Sequoia Capital, has attracted considerable attention, particularly with Andrew Reed joining the board. The capital raised brings ElevenLabs” total funding since its inception in 2022 to $781 million, underscoring its rapid ascent in the industry.
Financially, ElevenLabs reported an annual recurring revenue (ARR) of over $330 million for 2025, which translates to a hefty 33x revenue multiple based on its new valuation. This aggressive multiple reflects strong investor confidence, as existing investors like Andreessen Horowitz and ICONIQ significantly increased their stakes in the company. Newcomers to the investment round included Lightspeed Venture Partners, Evantic Capital, and BOND.
ElevenLabs plans to allocate a substantial portion of the new funding towards its ElevenAgents platform, aimed at deploying voice and chat agents at scale for enterprise clients. Current partnerships include notable firms such as Deutsche Telekom, Square, the Ukrainian Government, and Revolut, with the latter”s collaboration unveiled just days prior on January 29. ElevenLabs” API infrastructure reportedly serves platforms that reach over one billion users, indicating its expansive market impact.
Alongside the funding announcement, ElevenLabs introduced enhancements to its conversational AI capabilities, including faster response times and improved expressiveness via the Eleven v3 Conversational model. Such technical upgrades are crucial, as latency in responses can lead to user drop-off in voice agent interactions.
Looking ahead, ElevenLabs is expanding its market presence by establishing teams in fourteen major cities worldwide, including London, New York, San Francisco, and Tokyo. This ambitious geographic strategy signals a proactive approach to securing enterprise contracts before potential competitors can make significant inroads.
Co-founder Mati Staniszewski hinted at aspirations for an initial public offering (IPO) in the near future, stating that the company is building “toward IPO and beyond.” With a formidable ARR and soaring valuation, a public listing within the next 18 to 24 months seems plausible for those monitoring the AI infrastructure landscape.
Finally, the funding will also support research initiatives into “audio general intelligence,” suggesting that ElevenLabs envisions a broader application of voice synthesis that encompasses transcription, music generation, and dubbing.
