Sequoia, a16z backs voice cloning startup ElevenLabs in $80M funding round

ElevenLabs, a two-year-old startup that uses artificial intelligence to replicate voices in over two dozen languages, has carved out a big win for itself. The company has recently secured an $80M funding round, surpassing a $1B company valuation.

• Previous Funding: This new funding comes on the back of the company's prior capital, bringing its total fundraising to $101M.

• Funding Details: The latest round of funding was led by Andreessen Horowitz, with participation from Sequoia Capital, Smash Capital, and SV Angel, according to CEO Mati Staniszewski.

• Investor Line Up: Reputable venture capitalists and angel investors have shown great interest in AI tools that generate convincing audio and video, recognizing the potential business opportunities in advertising and media.

• Funding Allocation: The company, co-founded by Staniszewski and Piotr Dabkowski, plans to expand from its early applications in audiobooks and video games into media production, such as dubbing films and creating AI actors. Furthermore, with the newly raised funds, the startup is set to launch a new service that enables users to create AI versions of their voices, upload them to a library, and earn money when they are used.

• Challenges: The widespread use of AI in entertainment has sparked concerns about the unauthorized use of actors' or celebrities' voices. Staniszewski, however, emphasizes collaboration with the entertainment industry and has been in talks with major talent agencies and entertainment unions. The company is also investing heavily in research to develop features that can adjust the emotions and intonations of its AI audio.

ElevenLabs' journey exemplifies a successful blend of innovation, strategic financial decisions, and ethical considerations, setting a compelling example in the current startup landscape.