ElevenLabs Triples Valuation to $11B in Landmark Series D Funding

In a definitive signal that the generative AI boom is maturing into a phase of massive enterprise adoption, voice AI pioneer ElevenLabs has secured $500 million in Series D funding. The round, led by Sequoia Capital, propels the company’s valuation to a staggering $11 billion—more than tripling its worth from just twelve months ago.

This capital injection marks a pivotal moment not just for the London-based startup, but for the broader AI sector, as investors double down on infrastructure layers that promise to redefine human-computer interaction. With Andreessen Horowitz (a16z) quadrupling its investment and ICONIQ Capital tripling its stake, the market is casting a resounding vote of confidence in ElevenLabs’ vision: that voice, not text, will be the primary interface of the future.

A Meteoric Rise in Valuation and Revenue

The numbers surrounding this raise are indicative of a company breaking away from the pack. Only a year prior, in January 2025, ElevenLabs raised its Series C at a $3.3 billion valuation. The leap to $11 billion in February 2026 underscores an aggressive growth trajectory fueled by tangible revenue, not just hype.

The company closed the 2025 fiscal year with over $330 million in Annual Recurring Revenue (ARR), a figure driven largely by rapid uptake in the enterprise sector. This financial durability distinguishes ElevenLabs from many of its generative AI peers, who are still struggling to bridge the gap between viral consumer tools and sustainable B2B business models.

Andrew Reed, a partner at Sequoia Capital, will join the ElevenLabs board of directors as part of the deal. His involvement suggests a strategic mentorship role as the company navigates the complex path toward a public listing.

Recent Funding Milestones

Beyond Text-to-Speech: The Age of Conversational Agents

While ElevenLabs initially captured the public imagination with its hyper-realistic text-to-speech (TTS) models, the Series D funding is explicitly earmarked for a broader ambition: dominating the Conversational AI stack. The company is pivoting from being a tool for static content creation to becoming the engine behind dynamic, real-time interactions.

CEO Mati Staniszewski has been vocal about this shift, stating that "voice is the next interface for AI." To support this, a significant portion of the new capital will fuel the development of ElevenAgents, the company’s enterprise platform. ElevenAgents is designed to let businesses deploy autonomous voice agents capable of handling complex customer service queries, inbound sales, and internal workflows with sub-100ms latency.

Technological Leaps in Version 3

Coinciding with the funding announcement, ElevenLabs is rolling out major updates to its core models. The new "Eleven v3 Conversational model" introduces:

• Enhanced Emotional Intelligence: Agents can now detect and replicate nuance, tone, and pacing more effectively than ever before, reducing the "uncanny valley" effect in automated calls.
• Orchestration Layers: Improved turn-taking capabilities ensure that AI agents don't interrupt users awkwardly, mimicking the natural flow of human dialogue.
• Audio General Intelligence: A long-term research goal aimed at creating models that understand context, sound effects, and intonation deeply, rather than just processing text strings.

Enterprise Adoption and Strategic Partnerships

The rapid scaling of ElevenLabs' revenue is powered by a roster of high-profile enterprise clients. The company has moved beyond serving individual creators and YouTubers to powering mission-critical infrastructure for global giants.

Current partnerships include:

• Telecommunications: Deutsche Telekom is utilizing the technology to modernize its customer support interfaces.
• Fintech: Companies like Square and Revolut are integrating voice agents to streamline user interactions and fraud detection flows.
• Public Sector: The Ukrainian Government has adopted the technology for citizen engagement services, showcasing the utility of AI voice in accessibility and public information.
• Media & Education: Duolingo, Nvidia, and TIME Magazine utilize the ElevenCreative platform for localizing content across 70+ languages, effectively breaking down linguistic barriers for global media.

Furthermore, the company has legitimized the use of celebrity voices through its Iconic Voice Marketplace. By striking legal deals with estates and actors—including the likes of Judy Garland, James Dean, Michael Caine, and Matthew McConaughey—ElevenLabs has created a regulated, ethical framework for voice licensing. This move not only generates a new revenue stream but also positions the company as a "Hollywood-friendly" AI entity, contrasting with the copyright battles plaguing image and video generation startups.

The Road to IPO

Perhaps the most significant narrative emerging from this funding round is the explicit confirmation of IPO preparations. Staniszewski noted that the company is "building toward IPO and beyond," a sentiment echoed by the structural maturity of the Series D round.

With a board seat for Sequoia, a clear path to $1 billion in ARR, and a dominance in a specific vertical (audio) that complements rather than directly fights the generalist LLM providers (like OpenAI and Google), ElevenLabs is positioning itself as a prime candidate for a 2027 or 2028 public listing.

However, the path is not without challenges. The "Big Tech" players are encroaching on the audio space. OpenAI’s advanced voice mode and Google’s Gemini integration offer stiff competition. ElevenLabs' strategy appears to be depth over breadth—offering superior latency, emotion, and specific tooling for developers that generalist models struggle to match.

Global Expansion Plans

To support its growing client base, ElevenLabs is undertaking a massive geographical expansion. The new funds will support the establishment and growth of locally embedded go-to-market teams in key financial hubs.

Target Expansion Cities

Conclusion: The Voice-First Future

The $500 million Series D is more than just a financial milestone; it is a validation of the thesis that audio will be as critical to the AI revolution as text and code. By securing an $11 billion valuation and backing from the world’s premier venture capital firms, ElevenLabs has effectively been crowned the king of the voice AI vertical.

For creators, developers, and enterprises, this signals a future where digital interactions will increasingly move away from screens and keyboards, returning to the most natural interface of all: the human voice. As ElevenLabs accelerates its research into "Audio General Intelligence," the line between synthesized speech and human connection is set to blur faster than anyone anticipated.