ElevenLab’s valuation doubles to $22BN, as completes $300M employee tender offer

The valuation of UK hyped AI-audio generator ElevenLabs has doubled to $22bn in less than a year, it said today, as it completed a $300m employee tender offer.

ElevenLabs CEO Mati Staniszewski announced the closing of the tender offer on X, along with a progress report on ElevenLabs which made a name for itself by leveraging AI to convert text into speech which sounds like it’s being read by human voices.

Existing investors and employees sold £300m worth of stock in the tender offer, which was led by Wellington and T Rowe Price.

The $22bn valuation doubles its valuation from February when it raised $500m in a primary Series D funding round at an $11bn valuation.

ElevenLabs has carried out previous employee tender offers, as it looks to offer liquidity to employees.

As part of the tender offer, EQT, Goldman Sachs, GIC, OTPP, Sapphire Ventures, and BDT & MSD invested in ElevenLabs for the first time, alongside existing investors including Andreessen Horowitz, Lightspeed, Iconiq, D.E. Shaw, Evantic, Disruptive, and Alkeon, the company said.

Staniszewski highlighted two new text to speech models ElevenLabs had released, alongside its AI platform.

Staniszewski said: “AI should interact with people the way we interact with each other. Getting this right will help ensure AI diffuses widely across the economy, and everyone is able to shape and benefit from it, regardless of technical skill. 

“We’re already seeing rapid adoption of expressive voice agents by enterprises and governments, who are deploying them in service of consumers and citizens. As we grow, it’s important to us to let our people share in some of the value they are creating for our customers and the wider world.”