European tech fund Scaleup Europe is in talks to invest in AI voice startup ElevenLabs, which plans to raise over $500 million.

According to Bloomberg, the newly established European tech fund Scaleup Europe Fund is in talks to invest in UK AI voice startup ElevenLabs, which plans to raise more than $500 million in the current funding round. The €5 billion ($5.8 billion) fund is managed by Swedish private equity firm EQT and has invested in several European private tech companies since its inception earlier this year. Sources familiar with the matter said negotiations are still ongoing and the deal could fall through. Earlier, ElevenLabs held talks with investors regarding a secondary market sale valuing the company at approximately $22 billion, following a previous round that valued it at around $11 billion. The company uses AI to generate realistic voices for applications such as advertising, audiobooks, call centers, and sales training.