London-based artificial intelligence (AI) startup ElevenLabs has achieved unicorn status, reaching a valuation of $1.1 billion after raising $80 million in its latest Series B funding round. The funding was led by venture capitalist firm Andreessen Horowitz, with participation from investors like Nat Friedman, Daniel Gross, and Sequoia Capital.
Founded just two years ago, ElevenLabs specializes in AI models and tools for creating diverse, emotionally nuanced voices in multiple languages and accents. The latest funding round reflects the surging investor interest in generative AI technology, showcasing a significant valuation jump from $100 million in its 2023 funding round, according to PitchBook data.
The company’s AI-generated voice solutions have garnered attention across various sectors, with applications ranging from gaming giants to movie studios. ElevenLabs boasts a customer base that includes individual content creators and enterprises such as Storytel, Paradox Interactive, and The Washington Post.
CEO Mati Staniszewski revealed plans for aggressive expansion, aiming to increase its remote workforce from the current 40 employees to 100 by the end of the year. While details of the valuation were not disclosed, the funding underscores the growing demand for AI voice generation tools and their potential applications.
ElevenLabs’ tools include the AI Speech Classifier, designed to identify AI-generated audio content, and products focused on dubbing for movies. The company is also developing a marketplace where users can generate AI voices and monetize them through licensing.
Staniszewski emphasized the importance of transparency in AI content, stating, “The key primitive is to make sure that people are aware that it’s AI. We are big proponents of being able to detect AI content and trace it back.” The startup’s commitment to transparency aligns with the broader industry conversation around responsible AI usage.
ElevenLabs faces competition from other AI companies, notably OpenAI, whose ChatGPT has significantly popularized generative AI. According to Staniszewski, the startup distinguishes itself by focusing on research and building a workflow layer to enhance user experience. With the latest funding injection, ElevenLabs is poised to advance its AI voice generation technology further and expand its footprint in an increasingly dynamic market.
