EU Fund in Talks to Invest in ElevenLabs
▼ Summary
– The Scaleup Europe Fund is in discussions to invest in voice AI company ElevenLabs as part of a funding round aiming to raise over $500 million.
– This potential deal supports the fund’s goal of keeping promising late-stage European companies from seeking capital in the US market.
– ElevenLabs, despite being based in London, has strong ties to Poland through its founders and recent investments by Polish entities.
– The company recently reported significant revenue growth and has seen its valuation double since February, with plans for a potential IPO in two to three years.
– Other major portfolio companies of the fund include Iceye, Lovable, Mistral AI, and Tandem Health, highlighting its focus on high-growth tech sectors.
The Scaleup Europe Fund, a €5 billion growth vehicle supported by the European Commission, is currently exploring an investment in voice artificial intelligence firm ElevenLabs. According to reports from Bloomberg, the startup is targeting a capital raise of over $500 million in this latest round. While negotiations are underway, sources indicate that no agreement has been finalized and there is no assurance the transaction will proceed. Both EQT, the Swedish asset manager overseeing the fund, and ElevenLabs have declined to provide comment on the matter.
This potential deal would follow a series of significant moves by the fund since it began deploying capital earlier this summer. The investor group co-led Iceye’s €1 billion Series F financing in August, participated in Lovable’s $400 million round which valued the company at $13.3 billion, and backed Mistral AI’s €3 billion Series D. Additionally, the fund recently joined Tandem Health’s $100 million Series B. The initiative was launched with a €1 billion contribution from the European Commission, alongside partners including Allianz, APG, Novo Holdings, CriteriaCaixa, and Santander’s Mouro Capital. The primary objective of the fund is to address the late-stage funding gap in Europe, ensuring that high-potential companies can secure necessary capital domestically rather than migrating to US markets.
From a geographical perspective, ElevenLabs presents a complex case for EU-focused investment. Although headquartered in London, which lies outside the European Union, the company’s leadership team originates from Poland. CEO Mati Staniszewski and co-founder Piotr Dąbkowski are both from Warsaw, and the firm is actively expanding its workforce in the region. This strategic alignment was further solidified in June when Poland’s state development bank acquired a minority stake. ElevenLabs specializes in developing AI models capable of generating and cloning voices for applications ranging from audiobooks and dubbing to advertising and call center operations.
Financially, the company continues to demonstrate strong momentum. In February, ElevenLabs secured $500 million in funding led by Sequoia Capital, establishing a valuation of $11 billion. For the year 2025, the company reported annual recurring revenue exceeding $330 million. By July, Bloomberg had reported that the company was in early talks regarding a secondary share sale that could push its valuation to approximately $22 billion, effectively doubling its previous worth.
A distinctive pattern emerges in the company’s financial history, with the number 11 appearing frequently in its valuations and fundraising totals. Bloomberg highlighted that job postings from the company reference these multiples of 11. Notably, the stake purchased by Poland’s BGK through its venture arm Vinci amounted to $11 million. Looking ahead, Staniszewski has suggested that the company may be prepared for an Initial Public Offering (IPO) within two to three years and has indicated openness to pursuing a dual listing in Warsaw.
(Source: The Next Web)
