ElevenLabs, a startup that specializes in creating AI tools for audio applications, is currently experiencing a surge in investor interest. According to reports from TechCrunch, both existing and new investors are eager to participate in a new funding round that could potentially value the company at $3 billion.
The company, which is just two years old, is known for developing AI tools that are used to produce synthetic voices for audiobook narrations and real-time video dubbing into various languages. An inside source from a venture capital firm revealed that investors are in a frenzy to invest in ElevenLabs due to its rapid growth. This particular firm is even considering a valuation of $3 billion for the company in order to secure a spot in the upcoming funding round.
While some investors have chosen to pass on the opportunity, others have indicated that ElevenLabs is experiencing significant growth in its annualized recurring revenue (ARR). Reports suggest that the company’s revenue has surged from $25 million at the end of last year to approximately $80 million in recent months. This impressive growth rate positions ElevenLabs as one of the fastest-growing startups in the AI application development sector.
Despite the potential $3 billion valuation, the company’s revenue multiple remains lower compared to other enterprise-focused companies like Hebbia and Glean. This could be attributed to the fact that a considerable portion of ElevenLabs’ revenue is derived from consumer usage for narration and personal video dubbing, which is generally perceived as more volatile than revenue from corporate clients.
If the funding round is successfully completed at a $3 billion valuation, it would mark a significant milestone for ElevenLabs, tripling its value from the previous Series B funding round in January. Notably, this would be the third funding round for ElevenLabs within a relatively short period of time, with investments totaling $100 million.
While competitors like Google’s Gemini and OpenAI have also entered the human voice model space, ElevenLabs remains distinctive in its ability to replicate the speech patterns of various individuals. Other companies vying for a share of the synthetic voice generation market include Murf, Tavus, Resemble AI, Respeecher, and Lovo.
Despite the growing interest from investors and the potential for further expansion, ElevenLabs has chosen not to comment on the recent developments. The company’s unique AI tools and innovative approach to audio applications continue to attract attention and investment opportunities in the rapidly evolving tech landscape.
