Startup Flash Report

STARTUP FLASH - February 05, 2026

ElevenLabs Secures $500M Series D at $11B Valuation, Signaling AI Audio Boom

TOP 3 STORIES:
1. Polish AI audio startup ElevenLabs raised $500M in a Sequoia-led Series D, hitting an $11B valuation while pushing toward $330M ARR. Founders in AI can leverage this as evidence of massive scaling potential in voice tech, attracting top VCs with strong revenue traction; entrepreneurs should prioritize ARR growth to mirror this path for unicorn status.[6](https://therecursive.com/elevenlabs-500m-series-d-11b-valuation/)
2. AutoGrab (Australia) closed a massive $55.3M Series B in automotive analytics and insurance tech, highlighting demand for AI-driven B2B tools in mobility. This underscores opportunities for founders building data platforms in verticals like auto and finance, where VCs reward high ARR potential; entrepreneurs should focus on insurance-adjacent AI to tap similar oversized rounds.[3](https://growthlist.co/funded-startups/)
3. Midship (US) raised $4.15M seed for AI in finance, accounting, and B2B software, part of a February surge with 30+ pre-seed/seed rounds totaling $49M+. Early-stage founders gain actionable intel on investor appetite for fintech AI, emphasizing post-revenue traction; target seed rounds by demonstrating clear paths to $100K ARR in these sectors.[3](https://growthlist.co/funded-startups/) [4](https://fundraiseinsider.com/blog/pre-seed-startups/)

Flash Insight: February 2026 shows explosive early-stage funding with 30 pre-seed rounds averaging higher totals than January, fueled by AI across fintech, health, and auto verticals like ElevenLabs' blockbuster. VCs such as Sands Capital and Ringbolt are actively hosting office hours for AI/ML and cybersecurity pitches, signaling readiness for $1M+ checks in traction-proven startups. Entrepreneurs should accelerate toward revenue milestones and network at Mid-Atlantic events to capture this capital flow amid optimistic market recovery.

Sources:
[1] https://www.seedtable.com/funding-rounds/recent
[2] https://technical.ly/sponsored-articles/events-tech-startups-mid-atlantic-february-2026/
[3] https://growthlist.co/funded-startups/
[4] https://fundraiseinsider.com/blog/pre-seed-startups/
[6] https://therecursive.com/elevenlabs-500m-series-d-11b-valuation/
[7] https://www.youtube.com/watch?v=_QmwzA9t6CM