EQT's Scaleup Europe Fund is in advanced talks to invest over $500 million in ElevenLabs, the UK-based voice-AI startup. The deal would value ElevenLabs at up to $22 billion in secondary talks, highlighting the infrastructure race in voice AI.
TL;DR
- EQT's Scaleup Europe Fund is in talks to invest over $500M in ElevenLabs, a UK voice-AI startup.
- ElevenLabs is valued at up to $22B in secondary talks, up from $11B in its last funding round.
- The deal underscores the growing importance of voice AI as a foundational technology.
What happened
EQT's Scaleup Europe Fund is in discussions to invest in ElevenLabs, according to people briefed on the situation. Both EQT and ElevenLabs declined to comment.
ElevenLabs aims to raise over $500 million in its current funding round. The company's technology generates natural-sounding voices for various applications, including ads, audiobooks, customer support, and sales training.
In July, Bloomberg News reported that ElevenLabs was in early discussions about a secondary sale that could imply a valuation near $22 billion. The company was previously valued at $11 billion in a round led by Sequoia Capital.
Why it matters
The potential investment by EQT's Scaleup Europe Fund underscores the growing importance of voice AI as a foundational technology. As voice AI moves from novelty to infrastructure, capital is chasing the winners in this space.
For developers and startups, this deal highlights the competitive landscape and the need to innovate in voice AI technologies. Investors should keep an eye on the outcome of these talks and how much ElevenLabs ultimately raises, as these milestones hint at where investor confidence is flowing in AI.
The deal also raises questions about the future of voice AI and its potential to reshape industries. As the technology becomes more integrated into various applications, the next wave of public-market narratives could emerge from this sector.
Key facts
- EQT's Scaleup Europe Fund is in talks to invest over $500M in ElevenLabs.
- ElevenLabs is valued at up to $22B in secondary talks, up from $11B in its last funding round.
- The Scaleup Europe Fund has €5 billion ($5.8 billion) in assets and is supported by venture capital, pension plans, and asset managers.
- ElevenLabs' technology generates natural-sounding voices for various applications, including ads, audiobooks, customer support, and sales training.
- The fund has previously invested in European tech outfits such as Lovable, Iceye Oy, and Mistral AI.
- ElevenLabs has highlighted that earlier valuations and fundraising totals landed on multiples of 11.
- The Scaleup Europe Fund is anchored with €1 billion from the European Commission.
Context
ElevenLabs is part of a growing wave of startups focused on voice AI technologies. As the technology becomes more advanced, it is being integrated into various applications, from customer support to sales training.
The potential investment by EQT's Scaleup Europe Fund highlights the competitive landscape in voice AI. As capital chases the winners in this space, developers and startups need to innovate to stay ahead.
The deal also underscores the growing importance of voice AI as a foundational technology. As the technology moves from novelty to infrastructure, it has the potential to reshape industries and create new public-market narratives.