ElevenLabs raises $500M from Sequioia at a $11 billion valuation

In a major development for the voice AI sector, ElevenLabs has successfully secured $500 million in a new funding round led by Sequoia Capital. This latest investment marks a significant leap, with ElevenLabs now boasting a valuation of $11 billion—more than tripling its worth since January 2025. Sequoia partner Andrew Reed is set to join the board, reinforcing the strong backing of the investment firm, which also participated in the startup’s previous funding round. Earlier in the year, the Financial Times had reported the company's ambitions to reach this impressive valuation. Existing investor a16z has notably increased its stake, quadrupling its investment, while ICONIQ, which spearheaded the last round, has tripled its contribution. Other returning investors, including BroadLight, NFDG, Valor Capital, AMP Coalition, and Smash Capital, have also joined in this latest funding effort. New investors such as Lightspeed Venture Partners, EvanticCapital, and BOND have stepped in as well. ElevenLabs plans to allocate these funds towards extensive research and product development, with an emphasis on international expansion into markets like India, Japan, Singapore, Brazil, and Mexico. Co-founder Mati Staniszewski hinted at future innovations beyond voice technology, suggesting the possibility of integrating video capabilities into their offerings. The company recently announced a partnership with LTX to create audio-to-video content, showcasing its commitment to evolving its product line. Staniszewski stated, "The intersection of models and products is critical – and our team has proven, time and again, how to translate research into real-world experiences. This funding helps us go beyond voice alone to transform how we interact with technology altogether. We plan to expand our Creative offering – helping creators combine our best-in-class audio with video and Agents – enabling businesses to build agents that can talk, type, and take action." ElevenLabs has exhibited significant growth momentum, finishing the year with an impressive $330 million in annual recurring revenue (ARR). In an earlier Bloomberg interview, Staniszewski noted that it took the company just five months to leap from $200 million to $300 million in ARR. The voice AI landscape remains an attractive target for investors and technology giants alike, with similar companies like Deepgram also securing substantial investments, highlighting the escalating competition and interest in this dynamic field.