Key Takeaways
- ElevenLabs is discussing a secondary share sale that would value the company at $22 billion, double its February 2025 valuation
- The tender offer would let employees sell shares as early as September 2025
- The company expects enterprise revenue to hit 70% of total revenue by end of 2027, up from 50% now
ElevenLabs is in early talks with investors for a secondary share sale that would value the AI voice startup at $22 billion, Bloomberg reported Thursday. If completed, the deal would double the company's valuation from its $11 billion mark in February. That's a 100% jump in roughly seven months.
The proposed tender offer would allow employees to sell some of their shares, with discussions targeting a September timeline. No deal is finalized, and terms could shift.
How did ElevenLabs grow this fast?
Mati Staniszewski and Piotr Dabkowski founded ElevenLabs in 2022 after stints at Google and Palantir. The company builds AI voice generation tools. Publishers use them to produce audiobooks. Advertisers create voiceovers. Customer service teams deploy synthetic agents. Enterprise software companies embed the tech into their products.
In February, ElevenLabs raised $500 million in a round led by Sequoia Capital. Andreessen Horowitz and Iconiq participated alongside new investors Lightspeed, Evantic Capital, and Bond. That round valued the company at $11 billion, already making it one of Europe's most valuable AI startups.
The company now employs around 400 people across offices in London, Warsaw, and New York. Last year, ElevenLabs received nearly 250,000 job applications.
The enterprise pivot driving the valuation
ElevenLabs is shifting its focus toward enterprise customers. In a recent interview with Sifted, CEO Staniszewski said the company's revenue split stood at roughly 50-50 between consumer and enterprise at the end of 2024. By the end of 2027, he expects enterprise revenue to reach 70% of total revenue.
Enterprise contracts tend to be larger, stickier, and more predictable than consumer subscriptions. That shift changes how investors value the business. A company with 70% enterprise revenue commands different multiples than one dependent on individual users paying $5 to $22 per month.
The secondary share sale, if it happens, would not inject new capital into the company. Instead, it gives early employees and investors a chance to sell some holdings before an eventual IPO. It's a liquidity event, not a fundraise.
IPO ambitions are already on record
ElevenLabs has signaled its plans to go public. "There's still so much to build," Staniszewski wrote on LinkedIn earlier this year. "We stay hungry, knowing how early this space still is as we build toward IPO and beyond."
A $22 billion valuation in a secondary sale would set a high bar for any public offering. But the AI voice market is heating up. OpenAI's ChatGPT voice mode, Amazon's Alexa upgrades, and a wave of startups are all competing for the same customers.
What this signals for AI startup valuations
ElevenLabs is not the only AI company seeing valuation surges. Kling AI, the Chinese video generation startup, recently raised $2 billion at an $18 billion valuation ahead of a Hong Kong IPO. These numbers suggest that investors remain willing to pay steep premiums for AI companies with clear product-market fit and growing enterprise traction.
The flip side: these valuations assume continued growth in a market that barely existed three years ago. If enterprise adoption slows or competition compresses margins, those multiples could contract fast.
Logicity's Take
A secondary at 2x the last round in seven months is aggressive. ElevenLabs is betting that its enterprise pivot will sustain the valuation through an eventual IPO. For founders watching this, the takeaway is clear: if you're building voice AI or adjacent tools, enterprise revenue is what investors want to see. Consumer traction gets attention; enterprise contracts get multiples. The IPO path also means ElevenLabs will face public-market scrutiny on margins and retention. How their pricing compares to API competitors like PlayHT, Resemble AI, or the voice features bundled into platforms from OpenAI and Google will matter.
Another AI startup commanding a massive valuation with IPO plans
Frequently Asked Questions
What is ElevenLabs' current valuation?
ElevenLabs was valued at $11 billion in February 2025. The company is now in talks for a secondary share sale that could value it at $22 billion.
When could the ElevenLabs secondary share sale happen?
Bloomberg reports the tender offer could take place as early as September 2025 if discussions progress.
What does ElevenLabs do?
ElevenLabs builds AI-powered voice generation tools used in publishing, advertising, customer service, and enterprise software. The company was founded in 2022 by former Google and Palantir employees.
Is ElevenLabs going public?
CEO Mati Staniszewski has publicly stated the company is building toward an IPO. No timeline has been announced.
Who are ElevenLabs' main investors?
The company's investors include Sequoia Capital, Andreessen Horowitz, Iconiq, Lightspeed, Evantic Capital, and Bond.
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Source: Sifted
Manaal Khan
Tech & Innovation Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
