AI synthetic voice startup ElevenLabs has successfully raised $250 million in a Series C funding round, elevating its valuation to between $3 billion and $3.3 billion.

This funding round, led by US investor ICONIQ Growth, follows a previous $80 million Series B round that established ElevenLabs as a unicorn.

Founded in 2022 by former Google and Palantir engineers, ElevenLabs specializes in natural speech synthesis technology, enabling realistic voice generation.

The company's innovative AI audio technology can produce speech, voices, and sound effects in 32 languages, catering to a diverse range of users, from individuals to businesses.

Notable clients of ElevenLabs include major publishers like The Washington Post and HarperCollins, as well as video game developers.

With over 200 employees, ElevenLabs operates primarily in Europe for product and research, while its sales and partnerships are focused in the US.

Despite facing challenges, including the misuse of its technology for generating fake news, ElevenLabs has implemented detection tools to mitigate these issues.

Additionally, ElevenLabs encountered controversy when an AI-generated caller impersonated then-US President Joe Biden during a voter outreach effort.

In 2023, ElevenLabs expanded its partnerships across various sectors, collaborating with companies such as Storytel and media outlets.

The company released its first beta product in January 2023, followed by a $19 million Series A funding round in June, showcasing significant market interest.

However, the company has faced backlash, notably from Aurore Bergé, after using the cloned voice of her late father in a film without proper approval.

Applications of ElevenLabs' technology include voicing audiobooks, animating characters, localizing media, and enhancing accessibility.