ElevenLabs, a rapidly growing AI startup focused on creating synthetic voices for various applications, is attracting strong interest from both existing and new investors. The company, which has gained attention for its ability to generate AI voices for audiobooks and real-time video dubbing, is reportedly on the verge of a new funding round that could value it at $3 billion, according to sources close to the matter. Looks like ElevenLabs printed money; digital age stakes race keeps betting hot. — Allisson Scott (@Scott_Allisson) October 4, 2024 This source noted that a deal will likely come together in the coming weeks. At least two other firms confirmed that ElevenLabs is currently raising funds, although they have decided to pass on the deal. However, these firms revealed that the company’s annual recurring revenue (ARR) has seen explosive growth—from $25 million at the end of last year to around $80 million more recently. That’s a fascinating figure! Curious to see how quickly the valuation stabilizes, amidst the typical investment frenzy. — David Hammond (@HeyDavyH) October 3, 2024 If these numbers are accurate, ElevenLabs could be valued at roughly 38 times its most recent ARR, which is slightly lower than the multiples seen for other AI startups, such as Hebbia and Glean. Industry insiders suggest that the lower multiple may stem from a major portion of the company’s revenue coming from consumer use cases like audiobook narration and personal video dubbing. Comment Consumer revenue is often viewed as less stable than revenue from corporate clients, which may account for the more conservative valuation multiple. This upcoming round would mark ElevenLabs’ third major fundraising effort in just over a year. In January, the company secured a Series B round co-led by Andreessen Horowitz, Nat Friedman, and Daniel Gross, which pushed the startup’s valuation to $1 billion. Comment Although the exact size of the new funding is not yet clear, discussions with investors are ongoing. To date, ElevenLabs has already raised $100 million. However, ElevenLabs faces challengers like Murf, Tavus, Resemble AI, and Lovo, all of which are targeting the growing synthetic voice generation market. However, ElevenLabs sets itself apart with its advanced voice cloning technology, which allows users to generate voices that mimic the speech patterns of real individuals. Comment This feature distinguishes it from larger competitors such as Google’s Gemini and OpenAI, which have introduced their own human voice models but lack the ability to clone voices as effectively. Despite repeated requests, ElevenLabs has not yet commented on the ongoing funding round or its plans for future growth. October 2, 2024: Pinterest Launches GenAI Tools for Advertisers to Enhance Product Imagery! October 1, 2024: Malaysia to Launch National Cloud Policy and AI Regulations! September 20, 2024: Apple iPhone 16 Launches Without Promised AI Features, Raising Consumer Concerns! August 23, 2024: Breaking Audio Boundaries: ElevenLabs Launches AI for Sound Effects in Sora! August 23, 2024: ElevenLabs Joins the Billion-Dollar Unicorn Club with Game-Changing $80M Boost For more news and trends, visit AI News on our website.
TechCrunch has learned that investors are scrambling to participate in this round, with some venture capital firms willing to push valuations up to $3 billion in hopes of securing a spot.
Such rapid expansion positions ElevenLabs as one of the fastest-growing startups in the AI space with real-world applications.
byu/Purple-Affect9464 from discussion
inNewTubers
byu/Purple-Affect9464 from discussion
inNewTubers
byu/Neurogence from discussion
insingularity
ElevenLabs Attracts Investor Interest as Valuation Approaches $3 Billion!
-
Midhat Tilawat is endlessly curious about how AI is changing the way we live, work, and think. She loves breaking down big, futuristic ideas into stories that actually make sense—and maybe even spark a little wonder. Outside of the AI world, she’s usually vibing to indie playlists, bingeing sci-fi shows, or scribbling half-finished poems in the margins of her notebook.Midhat Tilawat
Midhat Tilawat is endlessly curious about how AI is changing the way we live, work, and think. She loves breaking down big, futuristic ideas into stories that actually make sense—and maybe even spark a little wonder. Outside of the AI world, she’s usually vibing to indie playlists, bingeing sci-fi shows, or scribbling half-finished poems in the margins of her notebook.
Key Takeaways:
One anonymous source from a VC firm told TechCrunch, “Investors are scrambling to get into the fast-growing company, and that their firm is willing to offer up to a $3 billion valuation, thinking that’s what it might take to get into the next round.”
Was this article helpful?
YesNo
Midhat Tilawat is endlessly curious about how AI is changing the way we live, work, and think. She loves breaking down big, futuristic ideas into stories that actually make sense—and maybe even spark a little wonder. Outside of the AI world, she’s usually vibing to indie playlists, bingeing sci-fi shows, or scribbling half-finished poems in the margins of her notebook.
