ElevenLabs, a startup that builds AI-driven voice synthesis software, is in early-stage talks with investors over a potential secondary share sale that could peg the company's value at about $22 billion, people close to the discussions said. The transaction under discussion would take the form of a tender offer - a mechanism that permits employees and early backers to sell existing shares instead of the company issuing new stock.
Those involved emphasized that conversations remain preliminary. The valuation figure, timing and mechanics of any transaction could still shift as negotiations continue, and nothing has been finalized. Insiders have suggested the tender could be executed as early as September, though that timetable is subject to change.
If carried out, the tender would represent a significant step up from a February fundraising round that set ElevenLabs' valuation at $11 billion. The move underscores ongoing investor demand for specialized artificial intelligence firms focused on infrastructure and applications, even as capital and attention concentrate behind the largest market players.
Founded in 2022, ElevenLabs develops software capable of generating realistic spoken audio in multiple languages. The company's product is marketed to a range of users across advertising, audiobook production, customer service and corporate training, placing it in the speech-AI niche rather than directly in the large language model arena.
ElevenLabs has scaled quickly over the past year. In May, the company reported that annual recurring revenue had topped $500 million and disclosed commercial partnerships with clients such as Deutsche Telekom, Boston Consulting Group and Revolut. The startup has also attracted strategic backers, with NVIDIA added to its roster of investors.
Management has signaled ambitions beyond private funding. Chief Executive Mati Staniszewski has previously said the company aspires to be ready for an initial public offering within the next two to three years. The business is headquartered in New York and maintains significant operations in London, according to people with knowledge of the company's structure.
As presented by company insiders, the proposed tender offer is structured to provide liquidity for existing shareholders rather than to raise new operating capital. That structure is relevant to investors and employees evaluating their stake, and it reflects a growing market for secondary transactions among high-growth private technology companies.
While the talks reflect continued appetite for niche AI developers, the preliminary nature of discussions means outcomes are uncertain. Any completed deal would likely draw attention from investors tracking the evolving economics of speech AI and the broader market for specialized AI infrastructure and applications.