ElevenLabs: A Premier Emerging Growth Player in AI Voice

Summary

ElevenLabs is an AI audio research and deployment company strategically positioned to capitalize on the surging demand for text-to-speech, speech-to-text, and AI voice generation solutions, driven by the rapid adoption of AI across multiple industries. Presence in both the research and application layers provides a competitive edge to ElevenLabs. As the most well-funded player in the text-to-speech AI space, the startup offers a robust suite of advanced solutions, including text-to-speech conversion, speech-to-text conversion, voice modulation, sound effect generation, voice cloning, voice isolation, and custom voice design. Founded just three years ago, the company has gained a diverse array of clients, ranging from content creators and publishers to game developers and large enterprises across various sectors. Its platform boasts seamless compatibility in 32 languages, enabling global reach. Notable customers include industry heavyweights such as The Washington Post, TIME, Paradox Interactive, and HarperCollins, among others. In an impressive demonstration of investor confidence, ElevenLabs has achieved a threefold valuation increase between its Series B and Series C funding rounds, realized within just 12 months. The company counts marquee investors such as Andreessen Horowitz, ICONIQ Growth, and BroadLight Capital among its backers, further solidifying its position as a leader in the AI voice synthesis space. Manhattan Venture Research (MVR) projects its 2025 revenue at $207 - $220 million, with a trajectory toward $1.5 to $2.4 billion by 2030.

‍Methodology

Our views on ElevenLabs are derived from our rigorous research process, involving proprietary channel checks with users, competitors, and industry experts, and synthesizing publicly available information from the company and other reliable sources.

‍Key Points

Strong Market Traction: As of October 2023, ElevenLabs has surpassed 1 million registered users. Its annual recurring revenue saw significant growth, rising from $25 million in 2023 to $90 million by November 2024. The platform has been adopted by employees at over 60% of Fortune 500 companies. In just two years, ElevenLabs users have collectively generated the equivalent of 1,000 years of audio content.

Large and Growing Total Addressable Market: ElevenLabs is well-equipped to disrupt multi-billion-dollar markets such as global dubbing and voice-over market, global audiobooks market, and global call centers market, to name a few.

Strong Operational Track Record: ElevenLabs has proven its effectiveness by delivering tangible benefits to its diverse customers, including improvements in customer satisfaction rates and turnaround time, among others.

Sticky User Base to Support Growth: ElevenLabs has built a deeply engaged, loyal user base—including creators, enterprises, and developers—that drives recurring revenue, rapid product improvement, and strong market defensibility in the AI voice generation space.

Vertical Integration Offers Strong Moat: ElevenLabs’ vertical integration—owning both the research and application layers—enables rapid innovation, cost efficiency, and tailored solutions that set it apart from both Big Tech and niche startups in the AI voice market.

Key Concerns: Unfavorable Regulations for Training Models Could Stifle Growth: In 2024, creatives sued ElevenLabs for allegedly misusing their voices to train AI, highlighting the need for clear regulations.

Commoditization Risk in Voice AI: As voice AI becomes mainstream, ElevenLabs risks commoditization of basic text-to-speech (TTS) services. Cloud giants like Amazon, Google, and Microsoft offer high-quality neural TTS at scale and low cost, while smaller players crowd the market, threatening margins in undifferentiated use cases.

Valuation: ElevenLabs raised $282.4M across 3 funding rounds, reaching a valuation of $3.3B after a $180M Series C in January 2025 — an impressive 200% surge from the Series B round. MVR projects its 2025 revenue at $207 - $220 million, with a trajectory toward $1.5 to $2.4 billion by 2030.

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Executive Summary

As the volume of global digital content reaches new heights, audio is becoming the next frontier of content consumption—more accessible, passive, and personalized than ever before. This shift is not just consumer-driven; enterprises across media, education, gaming, and communications are actively rethinking how information is delivered, seeking scalable voice solutions that go beyond traditional synthetic speech. ElevenLabs is emerging as a category-defining company in the AI audio space. As one of the few vertically integrated players, it owns both the research and deployment layers of voice technology, offering a full-stack solution that spans voice synthesis, dubbing, and real-time audio generation. This integration enables product velocity, defensibility, and a differentiated ability to serve a wide range of use cases—from content localization to immersive gaming and enterprise automation.

Founded in 2022, just three years ago, ElevenLabs has built a strong customer base across industries and geographies. Its platform supports 32 languages and has been adopted by organizations such as TIME, The Washington Post, Paradox Interactive, and HarperCollins. While the broader AI voice market remains competitive and fast-evolving, ElevenLabs has shown early leadership with rapid adoption, growing developer mindshare, and a threefold valuation increase between Series B and C within a single year. Backed by leading investors including Andreessen Horowitz, ICONIQ Growth, and BroadLight Capital, we believe ElevenLabs is well-positioned to shape the future of audio infrastructure in an increasingly AI-native digital ecosystem.

Company Overview

ElevenLabs’ growth is fueled by its focus on ultra-realistic voice synthesis, multilingual capabilities (32 languages), and a developer-friendly ecosystem. Its technology has generated over 1,000 years of audio content, with a 50% usage surge in India since November 2024. ElevenLabs employs over 100 staff across 29 countries, with ongoing hiring to bolster its R&D and global expansion. ElevenLabs isn’t just playing in the AI audio sandbox—it’s redefining it. A pivot from niche TTS to a full-stack audio AI platform shows strategic foresight. For VCs, this is a rare gem: a startup with both technical moat and market momentum, though its premium pricing and ethical tightrope need watching.

ElevenLabs offers a suite of AI audio products designed for versatility, realism, and scalability. Below are its core offerings, their specifications, and competitive advantages:

Competitive Benchmarking

ElevenLabs stands out as the most well-funded startup in the AI voice generation space and ranks among the highest-rated in its niche. Its platform offers the industry’s most versatile pricing structure, tailored to meet the unique needs of a broad and diverse client base.

ElevenLabs – Strong Competitive Position

ElevenLabs operates primarily in the AI-powered text-to-speech and speech-to-text market—an emerging sector with significant growth potential, offering ample opportunities for startups like ElevenLabs. As AI solutions increasingly replace legacy software, the market is expected to expand, resulting in relatively low competitive rivalry.

Potential GPU supply chain disruptions, driven by impending tariffs under Trump administration, could increase hardware costs. Additionally, the data required to train large language models is becoming more expensive. Despite this, the rise of GPU-as-a-Service is helping reduce infrastructure costs, thereby moderating supplier bargaining power. Furthermore, switching costs are low and the risk of forward integration by suppliers remains minimal.

The proliferation of open-source foundational models and increasing investment in AI have lowered entry barriers. Nonetheless, ElevenLabs benefits from being the most well-funded startup in its niche, operating across both the research and application layers— positioning it ahead of potential entrants and making the threat of new competitors moderate.

ElevenLabs serves a wide-ranging customer base, including call centers, dubbing studios, and audiobook providers, among others. While alternative providers exist, ElevenLabs offers the most advanced platform and the most flexible pricing structure in the market. Although customer switching costs are low, the company’s robust research capabilities enable faster innovation and responsiveness, sustaining its competitive edge.

As an early leader in AI audio generation, ElevenLabs operates in a space with no direct substitutes. Given the trajectory of AI adoption, this technology is set to replace traditional software solutions, making the threat of substitution low.

Key Positives

Strong Market Traction

ElevenLabs has demonstrated exceptional market traction, rapidly establishing itself as a leader in AI voice technology. As of October 2023, the company surpassed 1 million registered users, drawing in creators, businesses, and enterprises seeking scalable, high-quality audio solutions. This user base has driven remarkable engagement: in just two years, ElevenLabs’ users have generated the equivalent of 1,000 years of audio content, underscoring both the platform’s scalability and its central role in the evolving digital content landscape.

Financially, ElevenLabs’ growth has been equally impressive. According to Sacra, ARR soared from $25 million in 2023 to approximately $90 million by November 2024, marking a 260% year-over-year increase and positioning the company among the fastest-growing players in the generative AI sector. This explosive revenue growth has been fueled by a robust freemium model, premium creator plans, and custom enterprise pricing, allowing ElevenLabs to serve a diverse spectrum of customers—from individual content creators to global publishing houses.

Enterprise adoption is a testament to ElevenLabs’ product-market fit. The company’s technology is now used by employees at over 60% of Fortune 500 companies, up from 41% in 2024, reflecting deep penetration across industries such as media, gaming, publishing, and education. High-profile clients include the Washington Post, TIME, HarperCollins, and Bertelsmann, who leverage ElevenLabs for multilingual audio content, dubbing, and accessibility solutions.

Strategic product innovation has fueled this momentum. ElevenLabs has expanded its offering with features like Iconic Voices and GenFM, targeting new verticals and broadening its appeal to education, entertainment, and enterprise customers. The company’s acquisition of Omnivore in October 2024 further strengthened its capabilities in automated voice pipelines and media localization, supporting scalable, multilingual dubbing for major media clients.

This rapid adoption and sustained growth have translated into strong investor confidence. ElevenLabs recently closed a $250 million Series C round at a $3 billion valuation, reinforcing its leadership in the synthetic voice market and providing ample resources to accelerate product development and global expansion.

In summary, ElevenLabs’ strong market traction is evidenced by its surging user base, exponential revenue growth, deep enterprise adoption, and ongoing product innovation. The company’s ability to deliver expressive, human-like AI audio at scale positions it as a foundational platform for the next era of digital content creation.

Large and Growing Total Addressable Market

The voice technology sector is experiencing unprecedented growth, driven by advancements in AI, increasing demand for multilingual content, and the rising popularity of automated customer service solutions.

Global Dubbing and Voice-over Market: In 2024, the global dubbing and voice-over market is valued at $4.2 billion, with projections to reach $8.6 billion by 2034, at a CAGR of 7.4% (Market.us). The surge in demand for localized content, fueled by the global expansion of streaming platforms like Netflix and Disney+, is a primary catalyst. According to a 2023 report by Statista, the global streaming market is expected to grow to $330 billion by 2030, necessitating high-quality dubbing and voice-over services to cater to diverse linguistic audiences. The steady growth in this market underscores the need for scalable, high-fidelity voice solutions. Companies leveraging AI-driven dubbing technologies can reduce production costs and turnaround times, positioning themselves as leaders in this competitive landscape.

Global Audiobooks Market: Valued at $5.3 billion in 2023, the global audiobooks market is forecasted to skyrocket to $39.1 billion by 2032, achieving a CAGR of 25.7% (Market.us). The proliferation of smartphones, coupled with the rising popularity of on-demand audio content, is driving this explosive growth. A 2024 survey by Edison Research found that 52% of the US adults have listened to an audiobook, with younger demographics leading adoption. The integration of AI voice generation enhances production efficiency, enabling publishers to meet growing demand. The audiobook market’s rapid expansion presents a lucrative opportunity for AI voice technology providers. High-quality, natural-sounding AI voices can democratize audiobook production, particularly for independent authors and smaller publishers, further accelerating market growth.

Global Call Center AI Market: In 2022, the global call center AI market was valued at $1.6 billion, with projections to reach $4.1 billion by 2027, driven by a CAGR of 21.3% (MarketsandMarkets). The adoption of AI-powered chatbots and voice agents is transforming customer service operations. A 2024 Gartner report predicts that by 2026, 50% of customer interactions will be handled by AI, reducing operational costs and improving response times. AI voice agents offer a 70% cost reduction for support calls, appointment bookings, and restaurant reservations, as noted in proprietary estimates. The call center AI market is poised for significant disruption as businesses prioritize cost efficiency and customer satisfaction. Companies that deliver scalable, multilingual AI voice solutions will capture substantial market share in this high-growth sector.

Global AI Voice Generator Market: Valued at $3 billion in 2024, the global AI voice generator market is expected to reach $20.4 billion by 2030, with an impressive CAGR of 37.1% (Market.us). The versatility of AI voice generators, applicable across entertainment, education, healthcare, and customer service, is driving rapid adoption. A 2025 report by Grand View Research highlights the increasing use of AI voices in virtual assistants and interactive voice response (IVR) systems as a key growth factor. The ability to produce human-like voices at scale is revolutionizing content creation and customer engagement. The AI voice generator market represents the most dynamic segment of the voice technology ecosystem. Innovators that prioritize voice authenticity, multilingual capabilities, and seamless integration will dominate this rapidly evolving market.

According to proprietary estimates by MVR (see Figure X), ElevenLabs is well-positioned to capture $1.5 billion to $2.4 billion from these addressable markets by 2030. This projection aligns with the company’s focus on delivering cutting-edge AI voice solutions that cater to diverse use cases, from dubbing and audiobooks to customer service automation. ElevenLabs’ proprietary technology enables the creation of highly natural, customizable voices, addressing the growing demand for personalized and scalable voice solutions. A 2024 review by TechCrunch praised ElevenLabs for its “near-human” voice quality, positioning it as a frontrunner in the AI voice generation space.

The voice technology sector is undergoing a transformative phase, with the global dubbing and voice-over, audiobooks, call center AI, and AI voice generator markets collectively projected to exceed $72 billion by 2034. By leveraging its technological prowess and aligning with industry trends, ElevenLabs can establish itself as a market leader in this dynamic and rapidly growing ecosystem.

Strong Operational Track Record

Rian, an Indian document translation company, improved its dubbing process with ElevenLabs; 35% faster production turnaround with a 90% client satisfaction rate. Convin’s AI voice agents, powered by ElevenLabs, drove a 27% increase in customer satisfaction rate.

Adopted by ThisGen, a SaaS company, to help 911 dispatchers train for emergencies. Adopted by AiMation, a film studio, and Drew Binsky, a content creator, to name a few. ElevenLabs has surpassed 1M registered users, as of October 2023. ARR increased from $25M in 2023 to $90M by November 2024. Adopted by employees at over 60% of Fortune 500 companies. In just two years, ElevenLabs’ users have generated 1,000 years of audio content.

How ElevenLabs Delivers These Benefits:

Advanced Dubbing Technology: ElevenLabs’ dubbing API translates audio and video across 32 languages, preserving the emotion, timing, tone, and unique characteristics of each speaker. This ensures that localized content feels authentic and resonates with target audiences.

Seamless Integration: The platform offers flexible APIs and tools for both small creators and large enterprises, enabling rapid deployment and scalability.

Human-Like Voice Quality: By blending AI efficiency with human-like expressiveness, ElevenLabs makes automated interactions—whether dubbing or customer support—feel natural and engaging.

Customization and Control: Clients can edit transcripts, fine-tune translations, and regenerate speech segments for precise localization and quality control.

Scalability: The technology supports high-volume, multi-language projects, allowing clients to reach global audiences quickly and cost-effectively.

Sticky User Base to Support Growth

ElevenLabs, a leader in AI voice generation, has cultivated a highly engaged and sticky user base that serves as a cornerstone for its long-term growth in the rapidly expanding AI voice generator market. This sticky user base—comprising content creators, enterprises, and developers—drives recurring revenue, enhances product refinement, and strengthens ElevenLabs’ competitive moat. ElevenLabs’ platform, renowned for its hyper-realistic and customizable AI voices, has attracted a diverse user base, including audiobook producers, game developers, film studios, and customer service providers. A 2024 TechCrunch review highlighted the platform’s intuitive interface and superior voice quality, which fosters deep user engagement. According to data from SimilarWeb (2024), ElevenLabs’ website and app exhibit strong user retention metrics, with monthly active users (MAUs) spending an average of 15–20 minutes per session and returning 3–4 times monthly. This high engagement reflects the platform’s indispensable role in users’ workflows, reducing churn and ensuring steady revenue streams.

Sticky users translate into recurring subscription revenue, a critical driver in the SaaS-dominated AI market. With subscription plans like SuperGrok offering higher usage quotas (xAI, 2025), ElevenLabs can upsell premium features to its loyal base, boosting average revenue per user (ARPU). A 2025 McKinsey report on SaaS businesses notes that companies with retention rates above 90% achieve 2–3x faster revenue growth, underscoring the financial upside of ElevenLabs’ engaged user base.

ElevenLabs has fostered a vibrant community of creators and developers who actively contribute to its ecosystem through feedback, custom voice models, and integrations. The platform’s API, praised in a 2024 VentureBeat analysis for its flexibility, enables developers to embed ElevenLabs’ technology into third-party applications, such as e-learning tools and virtual assistants. This creates a self-reinforcing cycle: as more users adopt the platform, the ecosystem grows, attracting additional users and use cases.

Network effects amplify ElevenLabs’ market reach and product stickiness. For example, a single game studio using ElevenLabs’ voices can expose the technology to millions of end-users, indirectly driving brand awareness and adoption. A 2024 Gartner report on AI platforms emphasizes that community-driven ecosystems can increase customer lifetime value (CLV) by 25–30%, as users become advocates and co-creators. ElevenLabs’ developer-friendly tools and active community position it to scale rapidly across industries like gaming, media, and education.

Cross-industry adoption creates a resilient revenue model, insulating ElevenLabs from sector-specific downturns. For instance, a 2025 Deloitte report highlights that AI companies with diversified customer bases achieve 15–20% higher revenue stability. By embedding its technology in mission-critical workflows (e.g., automated customer support reducing costs by 70%), ElevenLabs ensures long-term contracts with enterprises, further solidifying its sticky user base and driving predictable cash flows.

The sticky user base provides ElevenLabs with a wealth of usage data, enabling continuous refinement of its AI models. As users generate voice content, ElevenLabs can analyze patterns to enhance voice authenticity, expand language support, and introduce new features. A 2024 Bloomberg report on AI startups notes that data-driven iteration is a key differentiator, with companies leveraging user data achieving 30–40% faster product improvement cycles.

Vertical Integration Offers Strong Moat

ElevenLabs’ dual presence in the research layer (developing proprietary AI models for voice synthesis) and the application layer (delivering user-friendly platforms and APIs) enables rapid iteration and deployment of advanced features. Unlike competitors reliant on third-party AI models or limited to application development, ElevenLabs’ in-house research team can tailor algorithms to specific use cases, such as hyper-realistic dubbing or multilingual customer service voices. A 2024 TechCrunch review praised ElevenLabs’ “near-human” voice quality, attributing it to proprietary advancements in neural text-to-speech (TTS) technology. This closed-loop innovation cycle reduces dependency on external providers, accelerating time-to-market for new features. A 2025 McKinsey report on AI innovation notes that vertically integrated firms achieve 30–40% faster product development cycles, enabling ElevenLabs to stay ahead in the fast-evolving AI voice market. For instance, its ability to quickly integrate new languages or emotional tones into its platform addresses the growing demand for localized content in the dubbing and voice-over market.

By owning both research and application layers, ElevenLabs optimizes resource allocation and minimizes costs associated with licensing external AI models or outsourcing development. This cost efficiency is critical in high-growth markets like audiobooks and call center AI, where clients prioritize affordability. Cost savings enable ElevenLabs to offer competitive pricing, attracting price-sensitive customers like independent creators and small businesses while maintaining healthy margins. A 2024 Deloitte report highlights that vertically integrated AI firms achieve 15–20% higher operating margins than non-integrated peers, enhancing ElevenLabs’ financial resilience and ability to reinvest in R&D. This scalability supports its penetration into diverse verticals, from gaming to education, solidifying its market leadership.

Vertical integration allows ElevenLabs to deliver highly customized solutions tailored to specific industries, a key differentiator in a crowded market. Its research layer develops specialized models for applications like audiobook narration, film dubbing, and interactive voice response (IVR) systems, while its application layer ensures seamless integration into client workflows via APIs and user-friendly interfaces.

This customization capability sets ElevenLabs apart from competitors like Google or Amazon, whose generalized AI voice solutions often lack industry-specific nuance. For example, ElevenLabs’ ability to produce emotionally expressive voices for audiobooks, capturing demand from publishers seeking cost-effective narration. A 2025 Gartner report emphasizes that tailored AI solutions increase customer retention by 20–25%, reinforcing ElevenLabs’ sticky user base and long-term revenue potential.

The AI voice market is increasingly competitive, with Big Tech players leveraging vast resources and data, and startups focusing on niche applications. ElevenLabs’ vertical integration creates a defensible moat by combining proprietary technology with a robust application ecosystem. Unlike startups limited to application development, ElevenLabs’ research capabilities protect against technological obsolescence. Conversely, its application layer ensures customer proximity, unlike Big Tech’s often impersonal solutions. A 2024 Bloomberg report on AI competition notes that vertically integrated firms are 2x more likely to maintain market share against larger rivals.

Key Concerns

Unfavorable Regulations for Training Models Could Stifle Growth

The rapid ascent of AI voice technology, exemplified by ElevenLabs’ innovative solutions, is reshaping industries from entertainment to customer service. However, undefined regulatory frameworks surrounding AI model training pose significant risks to growth. In 2024, ElevenLabs faced lawsuits from creatives alleging unauthorized use of their voices to train AI models, spotlighting the absence of clear regulations governing voice data usage. High-profile incidents, such as the unauthorized cloning of Jean-Pierre Dorval’s voice, have intensified scrutiny, raising concerns about intellectual property (IP) rights and consent. Undefined regulations could lead to increased compliance costs, estimated to rise by 15–20% for AI firms navigating fragmented global standards (Deloitte, 2025). Regulatory backlash may also delay product rollouts, stifling innovation and eroding market share. For ElevenLabs, failure to proactively address these risks could jeopardize its market capitalization. ElevenLabs must advocate for balanced regulations through industry coalitions, such as the Partnership on AI, to shape policies that protect creators while fostering innovation. Proactive compliance with emerging frameworks, like the EU’s AI Act, will mitigate risks and enhance credibility.

The misuse of voice cloning technologies poses ethical dilemmas, particularly when AI-generated voices are indistinguishable from human ones. A 2025 report by Gartner warns that 60% of consumers are concerned about deepfake-related fraud, amplifying public distrust in AI voice technologies. Ethical missteps could trigger a PR crisis, damaging ElevenLabs’ brand reputation. For instance, the 2024 Dorval case sparked negative media coverage, highlighting the need for transparent data practices. Failure to address these concerns could alienate key stakeholders, including content creators and enterprise clients. ElevenLabs should implement a robust ethical AI framework, including opt-in consent mechanisms and watermarking for AI-generated voices. Publicly committing to ethical standards, as recommended by a 2025 PwC report, will strengthen trust and differentiate ElevenLabs in a crowded market.

Undefined regulations, ethical concerns, and competitive pressures present formidable challenges for ElevenLabs in the rapidly growing AI voice technology sector. However, by proactively shaping regulatory frameworks, prioritizing ethical AI practices, and leveraging its technical expertise, ElevenLabs can mitigate risks and sustain its growth trajectory. With a projected market opportunity of $1.5–$2.4 billion by 2030, ElevenLabs is well-positioned to thrive—if it remains vigilant and adaptable in an evolving landscape.

Commoditization Risk in Voice AI

As voice AI becomes mainstream, ElevenLabs risks commoditization of basic text-to-speech (TTS) services. Cloud giants like Amazon, Google, and Microsoft offer high-quality neural TTS at scale and low cost, while smaller players crowd the market, threatening margins in undifferentiated use cases.

Moreover, with the advent of GPU-as-a-Service, open source LLMs, and investors pouring billions into AI startups, the barrier to enter the AI application layer is significantly lowered. For instance, DeepSeek has lowered the cost appreciably for AI application developers.

Industry Overview

The AI audio market, part of the $3.3 billion speech and voice recognition sector in 2023, is forecast to hit $31.8 billion by 2030, with a 24.7% CAGR (Grand View Research). Growth is fueled by voice-first interfaces, content localization (e.g., podcasts with 100 million+ listeners in India by 2027), and AI agents, a $500 million opportunity by 2030. Applications span media, gaming, education, and healthcare, among others, with voice emerging as the next human-machine frontier.

Competition is heating up, with startups like Deepdub and Hume AI challenging ElevenLabs, while tech giants (Google, Amazon, OpenAI) loom large. ElevenLabs stands out with its hyper-realistic, emotionally nuanced voices and multilingual prowess, targeting premium use cases.

The AI-powered text-to-speech (TTS), speech-to-text (STT), and voice generation and isolation industry has experienced rapid growth, driven by advancements in machine learning, neural networks, and natural language processing. These technologies have transformed how humans interact with machines, enabling more natural, accessible, and efficient communication across various sectors.

The AI-powered TTS, STT, and voice generation/isolation market is a subset of the broader AI and NLP industry. These technologies enable machines to process, understand, and generate human-like speech, making them integral to applications like virtual assistants, accessibility tools, content creation, and customer service automation.

Neural networks, particularly transformer-based models and generative AI, have improved the quality and naturalness of synthesized speech and transcription accuracy. TTS and STT technologies are critical for making digital content accessible to visually impaired or hearing-impaired individuals. The proliferation of devices like Amazon Echo, Google Home, and Apple Siri has fueled demand for high-quality voice interaction. AI-powered voice generation is revolutionizing audiobooks, dubbing, and virtual influencers. Global businesses require voice tech that supports diverse languages and accents, driving innovation in TTS and STT. For instance, Teleperformance, the world’s biggest call centre operator, used AI to neutralise Indian accents for Western customers, per The Telegraph.

Applications:

• Text-to-Speech
  
  • Accessibility: Screen readers for visually impaired users
  • Education: Audiobooks, language learning app
  • Media and Entertainment: Voiceovers for films, games, and animations
  • Customer Service: Interactive voice response systems and chatbots
  • Virtual Assistants: Siri, Alexa, Google Assistant
• Speech-to-Text
  
  • Transcription Services: Real-time captioning for meetings, lectures, and videos
  • Healthcare: Medical dictation for doctors
  • Legal: Courtroom transcription and documentation
  • Customer Support: Analyzing call center interactions for insights
  • Media: Subtitling and closed captioning for TV and streaming platforms
• Voice Generation and Isolation
  
  • Media Production: Voice cloning for dubbing, audiobooks, and virtual characters
  • Gaming: Dynamic non-playable characters voices and personalized player experiences
  • Music and Podcasts: Isolating vocals for remixing or enhancing audio quality
  • Security and Forensics: Isolating voices in surveillance or investigative audio
  • Virtual Influencers: Creating synthetic voices for social media avatars

Emerging Trends:

• Hyper-Personalization: AI will enable fully customizable voices tailored to individual preferences (e.g., tone, emotion, accent)
• Multimodal AI: Integration of TTS/STT with visual and contextual AI (e.g., lip-syncing avatars) for immersive experiences
• Low-Resource Language Support: Advances in transfer learning will improve TTS/STT for underrepresented languages
• Ethical Frameworks: Industry-wide standards for voice cloning and consent will emerge to address deepfake concerns
• Edge AI: On-device TTS/STT processing will reduce latency and enhance privacy
• Metaverse and Gaming: Voice generation will power dynamic, interactive characters in virtual worlds
• Healthcare Innovations: STT will enhance telemedicine with real-time transcription, while TTS will improve patient communication tools

The AI-powered TTS, STT, and voice generation/isolation industry is at a transformative stage, driven by breakthroughs in neural networks and growing demand across sectors. While challenges like ethical risks persist, the industry’s future is promising, with innovations poised to enhance accessibility, creativity, and human-machine interaction. Major players like Google, Amazon, and emerging startups like ElevenLabs are pushing the boundaries, but collaboration on ethical standards and inclusivity will be critical to sustainable growth.

Financials

ElevenLabs’ Revenue Estimates – MVR Analysis

Disclaimer: ElevenLabs has not released audited financials and is not expected to do so until it files for IPO. The revenue model and the implied valuation are preliminary and are based on Manhattan Venture Research’s internal assumptions and will be adjusted to reflect any incremental information.

We expect ElevenLabs to capture a 5-7% share of the AI voice generator market by 2030. Furthermore, we believe that its AI-powered text-to-voice technology will unlock new opportunities for expansion into other sectors, including dubbing & voice over, audiobooks, and call centers. These additional revenue streams will contribute significantly to ElevenLabs’ bottom line by 2030. Given these assumptions and projections, we estimate that ElevenLabs’ revenue will experience substantial growth in the coming years, estimates for which are as follows:

The monthly website traffic for ElevenLabs experienced an increase from 14.7 million visits in December 2024 to 16.2 million in February 2025, reflecting a compound monthly growth rate of 5%, as reported by Similarweb. By extrapolating these figures, we project a total of 246.7 million website visits for the year 2025. After accounting for a bounce rate of 38.5%, as indicated by Similarweb, the adjusted annual website traffic is estimated to be 151.5 million visits.

Assuming that a minimum of 1% of these visits result in registered users, we estimate approximately 1.5 million new registered users for 2025. Additionally, assuming that at least 90% of the 1 million existing users from prior years remain active, the total registered users for 2025 come to 2.4 million. Furthermore, based on the distribution of plan choices among these users—where we anticipate 88-96% will opt for the free plan, 1-3% will select the Starter plan, 2-4% will choose the Creator plan, 0.5-1% will subscribe to the Pro plan, 0.5-1% will adopt the Scale plan, and 0.5-1% will enroll in the Business plan—the revenue generated from these users is projected to range from $207 million to $416 million in 2025. These projections are based on the outlined assumptions and the anticipated behavior of both new and returning users.

By extrapolating registered users till 2030, we get an annual revenue of $1,194 million to $2,394 million for ElevenLabs.

Based on Approach 1 and Approach 2, ElevenLabs’s financials are triangulated as follows:

Private Market Valuation

ElevenLabs is a leading AI-powered voice startup with no direct public competitors. C3.ai, which enables organizations to build and deploy AI applications across sectors like oil and gas, manufacturing, and retail, offers some parallels. Like ElevenLabs, C3.ai was valued at $3.3B before its IPO. Given ElevenLabs’ rapid growth and proven client success, it is reasonable to project an EV/Revenue multiple of 25.8x, matching C3.ai’s EV/Revenue multiple at its 2020 IPO, should ElevenLabs files for an IPO in 2025.

Funding Rounds & Private Valuations

ElevenLabs has secured around $282.4 million in funding across three funding rounds. ElevenLabs’ innovative text-to-voice solutions have led to significant investor interest since 2023. Notably, the company raised $19 million in May 2023, followed by a $80 million series B round in January 2024. The company’s ability to attract investment has continued to grow, with its latest funding round – a $180 million Series C in January 2025 with investors including Andreessen Horowitz, ICONIQ Growth, BroadLight Capital, Endeavor Catalyst, Lunate, Nat Friedman and Daniel Gross, New Enterprise Associates, SV Angel, Salesforce Ventures, Sequoia Capital, Smash Capital,Valor Ventures, and WiL. The latest funding round valued the company at $3.3 billion, a 200% markup from its valuation of $1.1 billion post-series B in January 2024.

Comparative Public Multiples

The following table shows the public peer multiples of enterprise AI companies. These multiples provide a useful reference for valuing ElevenLabs. Given the vanguard in AI-powered voice synthesis, we believe the startup’s valuation multiple should command a premium over its public peers.

About the Analyst

Santosh Rao

Santosh Rao has over 25 years of experience in equity research with a primary focus on the technology and telecom sectors. He started his equity research career at Prudential Securities and later moved to Dresdner Kleinwort Wasserstein, Gleacher & Co, and Evercore Partners, where he followed Telecom and Data Services. Prior to joining Manhattan Venture Partners, he was the Managing Director and Head of Research at Greencrest Capital, focusing on private market TMT research. Santosh has an undergraduate degree in Accounting and Economics, and an MBA in Finance from Rutgers Graduate Business School. While at Gleacher & Co he was ranked leading telecom equipment analyst by Starmine/Financial Times

Disclaimer

I, Santosh Rao, Head of Research, certify that the views expressed in this report accurately reflect my personal views about the subject, securities, instruments, or issuers, and that no part of my compensation was, is, or will be directly or indirectly related to the specific views or recommendations contained herein.

Manhattan Venture Research is a wholly-owned subsidiary of Manhattan Venture Holdings LLC (“MVP”). MVP may currently and/or seek to do business with companies covered in its research report. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. This document does not contain all the information needed to make an investment decision, including but not limited to, the risks and costs.

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