ElevenLabs Surpasses $200 Million ARR, Doubles Valuation to $6.6 Billion Amid Employee Tender Offer

London, UK – ElevenLabs, the rapidly expanding artificial intelligence voice platform, has announced it has surpassed $200 million in Annual Recurring Revenue (ARR), a significant milestone achieved in under three years since its inception. The company also confirmed a $100 million employee tender offer, co-led by existing investors Sequoia and ICONIQ, which values the firm at an impressive $6.6 billion. This valuation represents a doubling of its worth in just nine months.

The announcement was highlighted by Harry Stebbings, host of the "20VC" podcast, who recently interviewed ElevenLabs CEO and Co-founder Mati Staniszewski. Stebbings, a prominent figure in the European venture capital scene, shared key takeaways from their discussion, including the company's financial performance and broader insights into the AI industry. Staniszewski stated in the interview, "Earlier this year, we surpassed $200 million in ARR and we expect to top $300M by year end."

ElevenLabs' rapid growth is attributed to its advanced text-to-speech technology and its expanding enterprise solutions. The company is nearing a 50/50 revenue split between its enterprise and self-serve customers, with enterprise revenue growing over 200% in the past year. Their technology is utilized by major companies like Cisco, Epic Games, Adobe, and NVIDIA for various applications, including customer support and entertainment.

During the "20VC" interview, Staniszewski also addressed the "real cost of AI," discussing the significant investments in talent and data centers. ElevenLabs has opted to build its own data centers for training models, a strategic decision made after calculating a two-year break-even point compared to renting. This approach provides greater control and allows for quicker experimentation.

The conversation further delved into the differences between US and European venture capitalists. Staniszewski observed that US VCs are "a lot more keen to take the risk," often encouraging bolder bets. He also touched upon the future of foundation models, emphasizing ElevenLabs' commitment to continuous innovation in voice AI, despite the potential for commoditization in some areas. The employee tender offer is designed to provide liquidity to the team, aligning them for long-term growth and retention in a competitive talent market.