Investors are eagerly trying to get into ElevenLabs, which could be valued at $3 billion soon.

ElevenLabs, a startup developing artificial intelligence tools for audio applications, is attracting interest from both current and new investors for a new funding round that could value it at up to $3 billion. This company, which has only been in existence for two years, specializes in creating tools for generating synthetic voices, used in audiobook narrations and in real-time dubbing into other languages.

A source from a interested venture capital firm mentioned that there is intense competition among investors to get into this growing company, and their firm is willing to offer a valuation close to $3 billion to participate in this new round. An agreement is expected to materialize in the coming weeks. Other investors from two different firms confirmed that ElevenLabs is in the process of raising funds, although they have decided not to participate this time. One of these contacts indicated that the company's annual recurring revenue (ARR) has increased from $25 million to nearly $80 million in recent months, positioning it as one of the fastest-growing startups in the development of real-world applications of artificial intelligence.

If this revenue figure is accurate, investors could value ElevenLabs at around 38 times its most recent ARR figure. This multiple is slightly lower than that of some companies focused on the corporate market, such as Hebbia and Glean. The reason for this lower multiple could be that a significant portion of its revenue comes from consumer use in personal narrations and video dubbing, which is considered more volatile compared to revenue generated by corporate clients.

If the round is completed at a $3 billion valuation, it would triple ElevenLabs' valuation since its Series B in January, which was co-sponsored by Andreessen Horowitz, Nat Friedman, and Daniel Gross. This would be the third funding for ElevenLabs in just over a year, although the size of the potential investment has not been determined, as negotiations are ongoing. So far, ElevenLabs has raised $100 million. Although Google and OpenAI have launched their own human voice models, none can clone the speech of other people in the way ElevenLabs does. Companies like Murf, Tavus, Resemble AI, Respeecher, and Lovo are also entering the market for synthetic voice generation.