Activate, India's newest AI fund, just put money into Elevenlabs, the voice-AI platform already used by many of its potential portfolio companies. This creates a unique "heads I win, tails I win" scenario for Activate, but leaves its early-stage founders facing significant platform risk. Local voice-AI startups now have their key platform provider also funded by their own potential investor.
How We Got Here
Activate launched as a $75 million fund aiming to identify and back technical founders, often before a company formally exists. That strategy now runs alongside Activate's May investment into Elevenlabs, the voice-AI company powering many Indian voice products.
The Numbers
- Activate scouts talent from 33 hosted events, referrals, and informal coffee meetings.
- Aakrit Vaish, Activate's co-founder, previously advised the Indian government on its IndiaAI mission.
- Elevenlabs achieved nearly $500 million global annual recurring revenue (ARR) in April.
- The recent Elevenlabs funding round, led by Iconiq Capital and Andreessen Horowitz, nearly doubled its valuation to $11 billion.
- Elevenlabs currently handles 50,000 outbound calls monthly for IDFC Bank in Hindi.
What Happens Next
🇮🇳 Why This Matters for India
For voice-AI founders in Bangalore and Hyderabad building niche products, this dynamic intensifies the already present platform risk from large global players like Elevenlabs.
The Take
Activate's strategy is undeniably smart for the fund, but it puts early-stage voice-AI founders in a precarious spot. Betting on both the platform and its potential competitors means Activate mitigates its own risk, while its portfolio companies navigate a tightrope walk with their own investor.
Source:
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