ElevenLabs in Talks for Tender Offer at $22 Billion Valuation, Doubling February Mark
July 3, 2026 – 10:49 am
Image by: Elevenlabs
The voice AI startup is reportedly considering a staff share sale that would value it at nearly double its February funding round, according to Bloomberg, which cited sources familiar with the discussions.
ElevenLabs is in early talks with investors about an employee tender offer that would assess the voice AI startup at approximately $22 billion, according to the report. This figure represents a substantial increase from the $11 billion valuation reached in February during its Series D funding round, led by Sequoia Capital.
The discussions are said to be preliminary, and terms could still evolve. An employee tender offer would enable ElevenLabs employees to sell their shares to outside investors, a strategy gaining popularity among AI startups striving to retain talent without forcing an initial public offering (IPO).
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Background of ElevenLabs’ Rapid Growth
The tender is anticipated to take place by September, continuing a pattern established in September 2025 when ElevenLabs conducted its initial staff share sale at a $6.6 billion valuation—more than double the $3.3 billion achieved during its Series C round in January 2025.
If the latest offer price pans out, the company’s valuation will have more than doubled in approximately eighteen months, surpassing many competitors within the AI sector.
Company Overview and Investors
Founded in 2022 by Piotr Dabkowski and CEO Mati Staniszewski, ElevenLabs is based in London. The company develops tools that convert text to speech and clone voices for dubbing, audiobooks, and conversational agents.
Investors in the February round included BlackRock, Nvidia, a16z, and Iconiq Growth. TechCrunch’s reporting on that funding round highlighted the company’s closing of approximately $330 million in annual recurring revenue (ARR) by the end of 2025.
Staniszewski has attributed the company’s rapid growth to its ability to move from $200 million to $300 million in ARR over just five months, attracting continued investor interest.
Competitive Landscape and Government Interest
Voice AI has been a magnet for substantial capital and intense competition. Rival Deepgram secured $130 million at a $1.3 billion valuation in January, while Google has been strengthening its cloud partnership with ElevenLabs and poaching talent from other voice labs.
ElevenLabs has also garnered government interest beyond its investor base. These include:
- A memorandum of understanding with the UK government regarding public service accessibility and AI safety research.
- An $11 million investment by Poland’s state investment fund last month.
Choosing a Tender Over a Primary Round
The preference for a tender over a fresh primary funding round is largely strategic. A secondary sale provides existing shareholders, primarily staff, with liquidity rather than injecting new capital into the company. It also allows the private company to update its valuation without the dilution or disclosure requirements associated with raising fresh equity.
In a market where AI researchers and engineers can switch employers within weeks for better packages, an employee tender offer serves as both a retention tool and a financing event, offering staff a tangible valuation of their shares while exploring a public listing.