ElevenLabs, one of many extra in style startups working within the subject AI audio, mentioned Thursday that it has raised a Collection C spherical of $180 million, valuing the corporate at $3.3 billion post-money. a16z and ICONIQ Development are co-leading funding.
Rumors of the fundraise have been first reported by TechCrunch. The ultimate numbers verify some however not all the particulars we beforehand reported (particularly, the general measurement of the spherical is smaller than we had heard; the valuation and lead traders are the identical).
The funding might be used to proceed constructing out ElevenLabs’ audio instruments and for enterprise improvement.
Mati Staniszewski, the CEO who co-founded the corporate with childhood buddy Piotr Dabkowski, mentioned in an interview that the startup is focusing its analysis on constructing audio AI fashions which are extra expressive and have extra management. Staniszewski added that the corporate can be specializing in “omni-models”: combining text-based fashions with its audio fashions for multimodal interactions.
There was a frenzy of investor curiosity in ElevenLabs going again a number of months, on the again of two essential currents. First, there was an enormous wave of hype round generative AI that has been catching quite a lot of corporations in its wake. Second, ElevenLabs has emerged as a serious participant amongst these offering artificial voice expertise. Dozens of main publishers and content material creators throughout verticals like media and gaming, in addition to quite a lot of different tech startups, are all utilizing ElevenLabs’ expertise to energy their voice and audio options.
Unsurprisingly, that has translated into a really crowded funding spherical with quite a lot of outstanding names.
New traders on this Collection C embody NEA, World Innovation Lab (WiL), Valor, Endeavor Catalyst Fund, and Abu Dhabi funding agency Lunate. Previous traders additionally collaborating embody Sequoia Capital, Salesforce Ventures, Smash Capital, SV Angel, NFDG, and BroadLight Capital.
Alongside these, ElevenLabs can be selecting up quite a lot of new strategic backers — that’s, corporations utilizing its expertise who at the moment are investing in it, too. These embody Deutsche Telekom, LG Know-how Ventures, HubSpot Ventures, NTT DOCOMO Ventures, and RingCentral Ventures.
ICONIQ companion Seth Pierrepont will be part of the corporate’s board, alongside present board members Jennifer Li from a16z and the co-founders of the corporate.
ICONIQ has been ramping up its actions round generative AI startups. Tapping into written output, the agency additionally co-led a $200 million spherical in Author final November.
“We have always felt that audio is a very important modality, and we thought there will be a very big company built in this category,” Pierrepont instructed TechCrunch. “We have observed ElevenLabs from its launch, and we were impressed by the quality of the technology, how quickly it ascended in terms of mindshare and momentum, and the depth of domain expertise of the founders.”
Pierrepont added that as a board member, quite a lot of the conversations with the corporate might be round creating new use circumstances for audio and discovering the correct markets for it.
At a time when startups are nonetheless discovering it difficult to shut development rounds, it’s notable that ElevenLabs raised its Collection B spherical of $80 million, which valued it at $1 billion, only a yr in the past. ElevenLabs has raised a complete of $281 million so far.
The product roadmap
Along with a concentrate on bettering its AI fashions, the corporate plans to make use of the funding to develop its conversational AI builder with an ambition to succeed in extra shoppers immediately and thru partnerships.
Final yr, the corporate debuted an AI conversational agent platform, and a key a part of that product was creating a speech-to-text element. Staniszewski famous that the corporate needs to enhance in that space much more.
“We want to understand what’s being said by you in a conversation better. We are working on ways to move away from only generating content and understanding and transcribing speech,” Staniszewski mentioned. “Many people say that speech-to-text is a solved problem. But for many languages, it is pretty bad. We think we can build better speech detection models because we have in-house teams to annotate data and give us quick feedback.”
The corporate additionally needs to double down on creating AI-powered conversational brokers by supporting legacy communications like telephony and higher integrating completely different sorts of data sources. That is partly why it’s partnering with telcos on this spherical.
It’s additionally being utilized by its clients to faucet into their very own archives. Final yr, ElevenLabs partnered with TIME publication to deploy a conversational bot for customers to ask questions on TIME Particular person of the 12 months.
Staniszewski mentioned the corporate envisions extra conversational AI brokers on websites: on information websites, for instance, customers would be capable to ask questions on tales or ask the bot to summarize them.
The CEO additionally famous that whereas AI-powered voice bots’ high quality has improved, the issue of sounding pure whereas reacting to people talking or emoting in numerous methods has not been solved but.
“The way I speak to you impacts how you react or respond to me. Sometimes, I’ll be excited, or sometimes, I’ll be calm, and at times, I will interrupt you. You will respond to me accordingly. Current-gen AI solutions are on the verge of being good, but they are not as good as humans,” Staniszewski mentioned.
ICONIQ’s Pierrepont additionally emphasised that if AI doesn’t perceive you effectively when you’re speaking, machine communication breaks down and customers instantly lose curiosity.
ElevenLabs has principally grown its attain (and income funnel) by means of B2B partnerships. Nevertheless it’s additionally going out on a direct limb, too.
In 2024, the startup launched its first purely consumer-facing product, ElevenLabs Reader, an app that reads out articles, textual content, and paperwork. Later, the corporate added the flexibility to create a podcast with generative AI voices from paperwork and internet pages — not not like what you are able to do with Google’s NotebookLM. Staniszewski mentioned that it needs to increase into extra shopper experiences.
It could truly already be doing that. TechCrunch noticed that the corporate has been testing a program on the ElevenLabs Reader app inviting customers to publish audiobooks on the platform. The corporate additionally needs to offer instruments to creators to have a number of voices learn out an audiobook sooner or later whereas additionally creating higher localization.
Staniszewski famous that the corporate is determining methods for customers and corporations to higher distribute their content material, together with by itself app. Whether or not that brings it into precise direct competitors with its clients might be one thing to observe. (That has been one cause why many B2B tech corporations want to keep away from direct-to-consumer performs.) Notably, ElevenLabs powers voice expertise for audio content material platforms like Lightspeed-backed Pocket FM and Google-backed Kuku FM.
ElevenLabs already powers AI-generated audio on merchandise and platforms like Perplexity, Rabbit R1, Chess.com, ESPN, Lex Fridman podcast, The Atlantic, and Synthesia. The purpose for the corporate is to be in additional locations and in addition personal an end-to-end dialog stack so it could generate extra experiences and insights for its clients.
Security
Not all of ElevenLabs’ silver linings have been with out clouds: its tech has been implicated in just a few notable misinformation campaigns. A latest report from risk intelligence firm Recorded Future discovered that the corporate’s product was utilized in a Russian propaganda operation. Final yr, somebody used the corporate’s voice platform to create an audio deepfake of Joe Biden. In 2023, Motherboard reported that 4chan members allegedly used the AI audio era device to create voices that gave the impression of Joe Rogan, Ben Shapiro, and Emma Watson to unfold problematic content material.
However the firm has been fast to reply. Right now, it has a coverage prohibiting “unauthorized, harmful, or deceptive impersonation.” Plus, it makes use of a mixture of machine-led and human moderation to weed out such content material. Nevertheless, as the corporate grows its set of instruments and has extra direct shopper touchpoints, this opens the door to extra alternatives for malicious actors to search for methods to misuse it.
“As one of the frontrunners of AI audio work, we do treat it as our responsibility to build the right safety mechanism as we build out the technology. We will frequently make choices to prioritize safety over speed of deployment or commercial benefit,” Staniszewski mentioned.
Staniszewski added that whereas the corporate follows C2PA, a regular to trace content material utilizing metadata, it additionally has a public device that permits anybody to test if audio was generated via ElevenLabs expertise utilizing digital signatures it locations within the audio throughout era. That may be a observe that continues to develop over time as approaches for misuse additionally develop into extra subtle.
