From $6.6B to $11B? ElevenLabs funding talks heat up post-secondary sale — TFN

Reportedly, ElevenLabs goals to shut recent funding, which might virtually double its present valuation to $11 billion. If accomplished, the increase would make it the UK’s most dear AI firm, overtaking friends which have lately captured investor consideration. This dialogue follows a secondary share sale solely 4 months in the past that valued the business at $6.6 billion.

Based in London in 2022 by Polish entrepreneurs Mati Staniszewski and Piotr Dabkowski, ElevenLabs has grown at distinctive velocity. Backed by blue-chip buyers, together with Sequoia, Iconiq and Andreessen Horowitz, it’s now searching for tons of of tens of millions of {dollars} in new capital. 

The dimensions of the increase alerts confidence not solely in its know-how, however in its capacity to transform demand into sturdy income at a tempo few European AI firms have managed.

From voice tech to world income engine

ElevenLabs’ core proposition, utilizing AI to generate real looking, human-like voices, has discovered traction throughout customer support, text-to-speech instruments and multilingual dubbing. Adoption has been swift, and so has monetisation. 

Final yr, the corporate generated $330 million in annual recurring income, a key benchmark for high-growth startups and a pointy enhance from the $200 million ARR it reported simply months earlier.

The corporate’s footprint displays its world ambitions. Whereas rooted in London, it runs headquarters in each London and New York, with further places of work in Warsaw, Bengaluru and Tokyo. Incorporation within the US has additional smoothed entry to American enterprise capital, serving to ElevenLabs place itself on the centre of the world’s best AI funding market.

Its funding historical past mirrors this momentum. In January 2025, ElevenLabs raised $180 million at a $3.3 billion valuation. By September, it had doubled its worth in a deal that allowed workers to promote $100 million price of shares. Buyers together with NEA, Smash Capital and FT Ventures have additionally joined its cap desk, alongside each institutional and strategic backers.

Europe’s AI ambition meets a world actuality

An $11 billion valuation would place ElevenLabs amongst Europe’s AI elite, near France’s Mistral, valued at almost $12 billion. It could additionally leapfrog UK friends corresponding to Wayve, which has explored funding at round $8 billion, and Nscale, valued at roughly $3 billion.

But the distinction with the US stays stark. American AI leaders proceed to function on a special scale completely. OpenAI, as an illustration, is already valued at about $500 billion and is reportedly discussing a brand new spherical that might raise its valuation past $800 billion. 

The hole highlights a persistent problem for European AI whereas technical excellence is considerable, capital depth and industrial scale nonetheless skew closely in the direction of the US.

In opposition to that backdrop, ElevenLabs stands out as a uncommon European firm combining cutting-edge AI with speedy income development. Its newest funding talks will not be nearly valuation. It alerts a perception that Europe can produce AI companies able to competing, commercially and credibly, on the worldwide stage.