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

As TechCrunch has learned, ElevenLabs, a startup that creates AI tools for audio applications, is being approached by existing and latest investors a few latest round that could value the corporate at up to $3 billion.

The two-year-old company makes a speciality of creating AI tools to generate synthetic voices for audiobook narration and to dub videos in real time into other languages.

One source at an interested VC firm told TechCrunch that investors are trying to get into the fast-growing company and that their company is willing to offer a valuation of up to $3 billion, pondering which may be enough to advance to the subsequent round. The person said a deal was likely in the approaching weeks.

Investors from two other firms have confirmed that ElevenLabs is raising, but are withdrawing from the deal. One of those sources heard secondhand that the corporate’s annual recurring revenue (ARR) has increased from $25 million at the tip of last 12 months to about $80 million in recent months, making it certainly one of the fastest-growing startups developing real-world AI applications . (These investors requested anonymity for competitive reasons.)

If this data is accurate, it means investors could value ElevenLabs at around 38 times its latest ARR value. This multiple is barely lower than some enterprise-focused firms comparable to Hebbia and Glean.

The lower multiple may be due to the incontrovertible fact that a good portion of revenue comes from consumer use for narration and private video dubbing. Consumer revenues are often considered more volatile than revenues generated by corporate customers.

The round, if it leads to a $3 billion valuation, will triple ElevenLabs’ valuation from its January Series B co-led by Andreessen Horowitz, Nat Friedman and Daniel Gross.

This would be Eleven Labs’ third round in only over a 12 months, but TechCrunch could not learn the scale of the potential investment because talks with investors are still ongoing. Eleven Labs has already raised $100 million.

While Google’s Gemini and OpenAI have introduced their very own human voice models, neither offering allows you to clone other people’s speech like Eleven Labs. Other firms targeting the synthetic voice generation market include Murf, Tavus, Resemble AI, Respeecher and Lovo.

ElevenLabs didn’t respond to a request for comment.