What Happened

The Scaleup Europe Fund — a €5 billion growth vehicle backed by the European Commission and managed by Swedish firm EQT — is in discussions to invest in ElevenLabs, according to a Bloomberg report surfaced by TNW on September 17, 2026. ElevenLabs reportedly aims to raise over $500 million in this round, though sources cautioned that talks are ongoing and may not result in a deal.

Both EQT and ElevenLabs declined to comment to Bloomberg.

The fund began deploying capital this summer and has already made several significant investments: it co-led Iceye's €1 billion Series F in August, participated in Lovable's $400 million round at a $13.3 billion valuation, joined Mistral AI's €3 billion Series D, and this week backed Tandem Health's $100 million Series B. The European Commission invested €1 billion in the fund, alongside Allianz, APG, Novo Holdings, CriteriaCaixa, and Santander's Mouro Capital.

ElevenLabs last raised $500 million in February 2026 in a round led by Sequoia Capital, valuing the company at $11 billion. The company reported over $330 million in annual recurring revenue for 2025. In July 2026, Bloomberg reported that ElevenLabs was in early discussions about a secondary share sale that could value the company at approximately $22 billion — roughly double its February valuation.

Why It Matters

The Scaleup Europe Fund exists specifically to close Europe's late-stage funding gap. The thesis is straightforward: promising European companies should be able to raise growth capital at home rather than defaulting to US investors who have historically dominated Series C and beyond. If the fund invests in ElevenLabs, it would be one of its highest-profile AI bets alongside Mistral.

ElevenLabs is an interesting test case. The company is headquartered in London — outside the EU — but its founders, CEO Mati Staniszewski and CTO Piotr Dąbkowski, are Polish, and the company is expanding its team in Warsaw. Poland's state development bank, BGK, purchased a small $11 million stake in June. Staniszewski has said the company could be ready for an IPO in two to three years and has floated the possibility of a dual listing in Warsaw.

For operators, the signal is clear: voice AI is still in land-grab mode. A company with $330M+ ARR raising another $500M+ is not optimizing for profitability — it's optimizing for market share, product breadth, and geographic expansion. Expect more languages, more verticals (call centers, dubbing, audiobooks, advertising), and potentially more aggressive API pricing as ElevenLabs scales against both open-source alternatives and competitors like Play.ht, Resemble AI, and the major cloud providers' native voice offerings.

Who Is Affected

European AI startup founders now have a concrete, actively-deploying late-stage fund to approach. The Scaleup Europe Fund has made five known investments since summer, and its portfolio (Mistral, Lovable, Iceye, Tandem Health, potentially ElevenLabs) reveals a clear preference for European-rooted companies with global ambition.

Developers building with voice AI APIs should expect ElevenLabs to accelerate its roadmap. More capital means more model investment, more language coverage, and likely more developer-facing tooling. If you're integrating ElevenLabs today, the platform risk is low in the near term — but watch for pricing changes as the company positions for IPO.

Enterprise buyers evaluating voice AI platforms should note that ElevenLabs' valuation trajectory ($11B → potentially $22B) and revenue growth ($330M+ ARR) suggest it is consolidating market leadership. The question for buyers is whether to standardize on ElevenLabs now or wait for open-source alternatives to close the quality gap.

Strategic Implications

For AI startup founders

If you're building in Europe and approaching late-stage rounds, the Scaleup Europe Fund is now a credible name to add to your target investor list. Its portfolio companies span AI infrastructure, voice AI, and applied AI — suggesting broad sector appetite. The fund's mandate to keep companies in Europe means it may offer terms designed to compete with US growth funds.

For developers/operators building with AI APIs

ElevenLabs raising $500M+ is a signal that voice AI infrastructure is entering a scale phase. Expect API improvements, new language models, and potentially bundled offerings (voice + dubbing + translation). If you're in procurement, lock in current pricing terms — post-IPO positioning typically means margin optimization, not price cuts.

For non-technical business owners evaluating AI tools

Voice AI is moving from experimental to production-grade for use cases like call centers, advertising localization, and audiobook production. ElevenLabs' continued capital raise suggests the category leader has the runway to be a long-term partner. But the $22B valuation discussion also means pricing power will shift toward the provider over time — budget accordingly.

What to Watch Next

Monitor for confirmation of the deal terms and final round size — Bloomberg's July report of a $22B secondary valuation provides a reference point, but a primary raise could price differently. Also watch for any announcement of additional investors joining the round, which would signal whether US firms are being crowded out or co-investing alongside the EU-backed fund.

Frequently Asked Questions

Q: Is the ElevenLabs funding round confirmed?

No. According to Bloomberg, the discussions are ongoing and there is no guarantee a deal will happen. Both EQT and ElevenLabs declined to comment. This is a preliminary report based on unnamed sources.

Q: How much is ElevenLabs worth?

ElevenLabs was last valued at $11 billion in its February 2026 Series C led by Sequoia Capital. In July 2026, Bloomberg reported that secondary share sale discussions could value the company at approximately $22 billion. The current funding round's valuation is not yet confirmed.

Q: What is the Scaleup Europe Fund?

It is a €5 billion growth fund backed by the European Commission (which invested €1 billion) and institutional investors including Allianz, APG, Novo Holdings, CriteriaCaixa, and Mouro Capital. It is managed by Sweden's EQT and aims to close Europe's late-stage funding gap so companies can raise capital without seeking US investors.