Voice AI startup ElevenLabs just closed one of the biggest funding rounds in the space this year, as The Financial Times earlier predicted.
The company raised $500 million, led by Sequoia Capital, pushing its valuation to $11 billion.
That’s more than three times what the company was worth just over a year ago.
Big jump, right?
What This Funding Round Looks Like
This wasn’t just a fresh set of new faces. Existing backers doubled down hard.
Here’s a quick breakdown:
| Investor | What They Did |
|---|---|
| Sequoia Capital | Led the round |
| a16z | Quadrupled its investment |
| Iconiq | Tripled its investment |
| BroadLight, NFDG, Valor Capital | Re-upped |
| Lightspeed, Bond | Joined as new investors |
Sequoia partner Andrew Reed is also taking a seat on ElevenLabs’ board.
Altogether, ElevenLabs has now raised over $781 million.
Why Investors Are Piling In
Voice AI is no longer a “nice-to-have.”
It’s becoming core infrastructure.
From audiobooks and dubbing to customer support and AI agents, demand keeps growing. ElevenLabs sits right in the middle of that shift.
The company ended last year with $330 million in annual recurring revenue (ARR). Even more striking? According to co-founder Mati Staniszewski, revenue jumped from $200M to $300M ARR in just five months.
That kind of growth turns heads fast.
How ElevenLabs Plans to Use the Money
The company says the funding will go into three main areas.
1. Better Models and Products
More research. Stronger tools. Faster updates.
2. Global Expansion
ElevenLabs plans to scale further in:
- India
- Japan
- Singapore
- Brazil
- Mexico
3. Moving Beyond Voice
Voice is just the starting point.
Staniszewski hinted that the company is exploring agents that can talk, type, and take action. That includes blending voice with video.
Earlier this year, ElevenLabs partnered with LTX to create audio-to-video content.
A Bigger Bet on AI Agents
ElevenLabs isn’t alone in this direction.
More AI companies are shifting from single tools to full agents. Think of it like upgrading from a calculator to a personal assistant.
Staniszewski put it simply: research only matters if it turns into real products people use.
And investors seem to agree.
Voice AI Is Having a Moment
The funding race isn’t slowing down.
In January:
- Deepgram raised $130M at a $1.3B valuation
- Google hired top talent from Hume AI, including CEO Alan Cowen
Big tech clearly wants in.
The Big Picture
ElevenLabs’ new valuation shows how fast voice AI is moving from experimental to essential.
Is the space crowded? Yes.
Is competition intense? Definitely.
But strong revenue, rapid growth, and expanding use cases make one thing clear.
Voice AI isn’t a trend anymore.
It’s a business.
