20VC: ElevenLabs Hits $200M ARR: The Untold Story of Europe's Fastest Growing AI Startup | The Real Cost of AI from Talent to Data Centres | How US VCs are in a Different League to Europeans | The Future of Foundation Models with Mati Staniszewski
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Podcast Summary
In this explosive episode, Harry Stebbings sits down with Matti, co-founder of ElevenLabs, to unpack one of the fastest-growing AI companies in history. From humble beginnings solving the "terrible" Polish movie dubbing problem (07:42), ElevenLabs has rocketed to $200 million ARR in just 35 months—doing 20 months to $100 million, then 10 months to $200 million (28:25). Matti reveals the brutal early fundraising process where they pitched 30-50 investors (18:10), shares the devastating moment when a customer launched their dubbing solution before they did (39:38), and explains why building in Europe is "hard mode" but offers unique advantages. With insights on maintaining small teams at scale, the war for AI talent, and why they turned down acquisition offers, this conversation offers a masterclass in building a global AI powerhouse from Europe.
Speakers
Matti (Cofounder, ElevenLabs)
Polish-born cofounder of ElevenLabs, ex-Palantir engineer who built one of the fastest-growing AI companies in the world. His company reached $200M ARR in just 30 months and raised over $350M at a $3.3B valuation from top-tier investors including A16Z, Sequoia, and Nat Friedman/Daniel Gross.
Harry Stebbings (Host)
Host of 20VC podcast, one of the leading venture capital podcasts globally. Known for in-depth interviews with prominent founders and investors, providing insights into the world of startup building and venture capital.
Key Takeaways
Test Your Product With Real Users, Not Platforms
Skip traditional press and focus on Discord communities, Reddit, and Hacker News where your actual users live. When Eleven Labs launched their beta, newsletters and user forums generated thousands of engaged users while major publications yielded zero meaningful traction. (24:12)
Speed Kills in Both Investment and Execution
Brian Kim from a16z flew to London and signed a term sheet within days, while Nat Friedman tested APIs before even meeting. The investors who moved fastest weren't just writing checks—they were already providing value through celebrity introductions and technical feedback. Speed signals serious intent and eliminates roadshow fatigue.
Align Funding Announcements With Product Milestones
Never announce a funding round in isolation. Eleven Labs held their $2M pre-seed announcement for months until their beta launch, creating maximum impact. Every round should celebrate product breakthroughs, customer wins, or research advances—not just capital raised. (20:46)
Fire Fast When You're Unsure
The biggest hiring mistake founders make is prolonging uncertainty. If you're not sure about someone in the first weeks or months, separate immediately rather than giving endless chances. This applies especially to early-stage companies where every hire dramatically impacts culture and momentum.
Build Your Own Infrastructure When Unit Economics Demand It
Eleven Labs built their own data centers after calculating a two-year breakeven versus renting compute. This wasn't premature optimization—it was strategic control over their core differentiator. When your business model depends heavily on compute costs, owning infrastructure becomes a competitive moat. (43:48)
Statistics & Facts
- ElevenLabs crossed $200,000,000 in ARR, achieving $100,000,000 in 20 months and then $200,000,000 in approximately 10 months (00:00) - representing one of the fastest AI company growth trajectories on record.
- The company's largest contract is around $2,000,000, primarily focused on call center and customer support applications (55:54), demonstrating significant enterprise adoption in conversational AI.
- ElevenLabs raised $2,000,000 at a $9,000,000 post-money valuation after speaking with 30-50 investors (18:10), with their most recent round pricing the company at $3,300,000,000.
