ElevenLabs CEO: Why Voice is the Next AI Interface
Audio Brief
Show transcript
This conversation explores the rapid growth and organizational philosophy of AI audio company ElevenLabs, featuring insights from CEO Mati Staniszewski on balancing deep research with product velocity.
There are four key takeaways from this discussion on scaling a technical startup. First is the critical balance between research purity and product pragmatism. Second is the strategic use of small, autonomous teams to maintain speed. Third is a hiring philosophy that prioritizes agility over pedigree. And finally, the necessity of creating forcing functions when partnering with slow-moving industries.
Regarding the tension between research and product, ElevenLabs employs a specific heuristic to avoid indefinite delays. While the company prefers solving issues at the fundamental model level rather than adding product band-aids, they timebox research efforts. If a breakthrough is estimated to take longer than three months, product teams are empowered to build practical workarounds immediately. This ensures that while long-term research continues, the consumer experience doesn't stagnate waiting for perfection.
To maintain startup velocity while scaling, the company organizes into roughly twenty independent product teams of five to ten people. Each team operates with a sink-or-swim mandate, often given a six-month window to prove the viability of a new initiative. This structure fosters intense ownership and allows the company to ship products simultaneously across different audio domains like speech, sound effects, and music without administrative bottlenecks.
The company supports this agility through a flat organizational structure that avoids traditional titles. Instead of hiring VPs, they use generic roles like Member of Technical Staff. This approach prevents tenure from defining hierarchy and encourages a culture where impact matters more than position. Consequently, their hiring strategy favors unconventional backgrounds and hungry talent over risk-averse veterans from established tech giants.
Finally, regarding go-to-market strategy, Staniszewski notes that artificial deadlines are essential when dealing with corporate inertia. When negotiating with music labels or large enterprises, startups must establish firm launch dates to force action. Without a credible threat that the product will launch with or without the partner, negotiations can drag on indefinitely.
This discussion offers a rigorous blueprint for technical founders aiming to scale innovation without succumbing to bureaucratic bloat.
Episode Overview
- This episode features a conversation between Jennifer Li of a16z and Mati Staniszewski, CEO and co-founder of ElevenLabs, discussing the rapid growth and product evolution of the AI audio company.
- The dialogue explores the strategic tension between deep research and rapid product shipping, revealing how ElevenLabs balances developing foundational models with launching consumer-facing applications.
- Mati shares insights on company building, including their unique hiring philosophy, the transition from a consumer focus to enterprise sales, and how they navigate complex relationships with creative industries like music labels.
- The discussion provides a blueprint for technical founders on scaling teams, managing flat organizational structures, and evolving go-to-market strategies as a startup matures.
Key Concepts
- Research-Product Tension: A core challenge for AI companies is deciding when to launch a product versus waiting for research breakthroughs. ElevenLabs initially resisted adding "sliders" for speed control in their product, preferring to solve pacing issues at the fundamental research level. They eventually learned to timebox research: if a breakthrough will take longer than three months, product teams are empowered to build practical workarounds to ship faster.
- Small Team Velocity: To maintain speed while scaling, ElevenLabs organizes into approximately 20 small, independent product teams of 5-10 people. This structure fosters high ownership and agility, allowing them to ship multiple products simultaneously across different audio domains (speech, sound effects, music).
- The "No-Title" Flat Structure: The company operates with a very flat hierarchy, avoiding traditional titles like "VP of Sales" in favor of "Member of Technical Staff" or generic go-to-market roles. This prevents employees from being defined by their tenure or previous seniority, encouraging meritocratic contribution where impact matters more than position.
- Hiring for Agility over Resume: ElevenLabs prioritizes hiring individuals with unconventional backgrounds who demonstrate extreme passion and adaptability, rather than just impressive LinkedIn profiles. They found that people from non-traditional paths often have higher motivation and hunger compared to those from established tech giants who may focus too heavily on risk mitigation.
- Forcing Functions in Partnerships: When dealing with slow-moving industries like music labels, startups must create artificial deadlines or "forcing functions" to close deals. Without clear triggers—such as a "we are launching with or without you" date—negotiations can drag on indefinitely due to corporate inertia.
Quotes
- At 5:46 - "If we think the research work will take more than three months, then the product is can do any anything they want to to start adding other models adding some of the extensions." - explaining the heuristic used to balance research purity with product pragmatism.
- At 11:18 - "We wanted to make it very clear that every team we create those teams you have six months to prove it if it's proven that team will stay and continue working but it really is that the moment you join you can have any impact on the company." - describing the high-stakes, high-ownership culture of their small internal teams.
- At 14:02 - "The tenure will not define your position in the hierarchy. If you are smart and quick and passionate you can elevate yourself very quickly." - clarifying the philosophy behind their flat organizational structure and lack of traditional titles.
- At 16:59 - "This is when we do it and we either do it together or we do it separately. And those forcing functions really helped add urgency." - revealing the negotiation tactic necessary to move large enterprise partners and creative rights holders to action.
- At 19:23 - "In some ways the quota, the commissions are a effectively a lagging indicator of strategy... you need to make sure the quota and commissions and the strategy that you want to drive are closer together." - highlighting the critical alignment needed between sales incentives and the company's broader strategic goals as it scales.
Takeaways
- Implement a "Prove It" Period for New Teams: When launching new internal initiatives, give small teams a specific timeframe (e.g., six months) to prove viability. This creates urgency and allows for low-risk experimentation without permanent bloat.
- Align Sales Incentives with Long-Term Strategy: Do not let standard sales commissions dictate company behavior. If a deal is strategically wrong (e.g., selling to a competitor or underpricing a premium product), leadership should intervene to kill the deal while still compensating the salesperson to maintain morale and alignment.
- Use "Alpha" Labels to Manage Enterprise Expectations: To reconcile the need for speed with enterprise demands for stability, clearly delineate products as "Alpha" or "Beta." This gives large customers the agency to choose between cutting-edge features and stability, preventing the startup from slowing down its innovation cycle.