Nvidia-backed AI voice startup ElevenLabs hits $11 billion valuation as it eyes IPO

ElevenLabs, an AI-focused startup, announced a significant fundraising milestone on Wednesday, securing $500 million at a staggering $11 billion valuation as it prepares for a potential initial public offering (IPO). This funding round was spearheaded by Sequoia Capital, with contributions from established investors such as Andreessen Horowitz and Iconiq, alongside new supporters including Lightspeed Venture Partners, Evantic Capital, and Bond. This latest funding marks a dramatic increase from ElevenLabs' previous valuation of $3.3 billion following a $180 million Series C funding round in January 2025. Cofounder Mati Staniszewski revealed that Nvidia had made an investment in the company back in September. Established in 2022 and based in London, ElevenLabs initially focused on developing AI text-to-speech technology. The company has since diversified its offerings to include speech-to-text capabilities, sound effects, dubbing, music, and conversational AI. Its products empower enterprises to implement voice and chat agents and provide a platform for brands and creators to produce and localize audio content. Notable clients include Time and Nvidia, while major players like Meta and Salesforce leverage ElevenLabs' voice infrastructure for their product innovations. By the end of 2025, ElevenLabs reported an impressive $330 million in annual recurring revenue, driven largely by enterprise adoption from companies such as Deutsche Telekom and Revolut. In a statement, Staniszewski emphasized that this new funding will allow ElevenLabs to push beyond voice technology, aiming to revolutionize human-technology interaction. The cofounder also indicated plans to enhance offerings for creators, enabling businesses to build sophisticated agents capable of talking, typing, and executing tasks. As part of its growth strategy, ElevenLabs intends to continue expanding internationally, with offices across Europe and in Brazil, Mexico, India, South Korea, Japan, and the United States. Investment in AI startups reached unprecedented levels in 2025, with European AI ventures raising a record $21.6 billion, according to data from Dealroom. The funding landscape saw substantial rounds, including €1.7 billion for French AI model builder Mistral and $1.1 billion for UK AI infrastructure firm Nscale. U.S. AI startups attracted $164.6 billion, fueled by significant investments in major players like OpenAI, Anthropic, and xAI, with reports suggesting Amazon may invest up to $50 billion in OpenAI this year.