ElevenLabs recently revealed that employees can cash out a portion of their vested equity at a $22 billion valuation. This figure represents a significant jump from the company’s earlier valuation of $11 billion, reached in February after raising $500 million. The impressive valuation isn’t due to new funding; rather, it comes from a $300 million tender offer that allows employees to sell their shares to investors.
Co-led by Wellington and T. Rowe Price, both well-known institutional investors that support private companies, the tender offer indicates a strategy to retain stock after the company goes public. This reflects a growing trend among rapidly advancing AI startups, where providing liquidity for employees serves as an effective tool for keeping talent and reducing turnover to competitors.
This marks the second time ElevenLabs has enabled a secondary transaction for its employees. Previously, the company conducted a $100 million tender offer at a valuation of $6.6 billion in September 2025. Such transactions are becoming crucial for retaining employees in companies that are evolving quickly.
Founded in 2022, ElevenLabs is recognized for its ability to generate ultra-realistic human voices and sound effects. Based in New York and London, the company’s soaring valuation places it among Europe’s most valuable startups. This rapid ascent highlights the demand for innovative voice AI technologies and the market’s confidence in ElevenLabs’ future potential.
