Europe Tech Fund Said In Talks to Back AI Startup ElevenLabs

Europe’s new technology fund is in talks to invest in UK-based artificial intelligence startup ElevenLabs Inc., people with knowledge of the matter said.

The €5 billion ($5.8 billion) Scaleup Europe Fund, which is managed by Swedish private equity firm EQT AB, has made a series of investments in privately-owned European tech companies since it was established earlier this year.

ElevenLabs is seeking to raise more than $500 million in the funding round, said the people, who asked not to be identified discussing private information. Negotiations are ongoing and a deal may not be completed, they added.

Representative for EQT and ElevenLabs declined to comment.

Bloomberg News reported in July that ElevenLabs held early talks with investors about a secondary offering that would value the startup at roughly $22 billion. The company uses AI to create a wide range of realistic voices that can be used in advertising, audiobooks, call centers and sales training.

A prior funding round led by Sequoia Capital valued ElevenLabs at $11 billion. In job advertisements, the company has made a point of noting that previous valuations and fundraising totals were multiples of 11.

Scaleup Europe is backed by venture capital, pension funds and asset managers, and anchored by €1 billion from the European Commission. It has invested in Swedish coding firm Lovable, Finnish satellite company Iceye Oy and France’s Mistral AI.