Synthesia Raises $180M, Doubling Valuation to $2.1B in AI Video Avatar Boom

AI video platform Synthesia raises $180M doubling valuation to $2.1B - SiliconANGLE

AI video platform Synthesia raises $180M doubling valuation to $2.1B Synthesia Ltd., the maker of a video platform that uses artificial intelligence to generate clips featuring human avatars, has raised $180 million in a late-stage round valuing the startup at $2.1 billion. The London-based company said today that the Series D funding was led by venture firm NEA, which more than doubled its valuation from $1 billion since its last round in 2023. Existing investors, including GV, MMC Ventures and Firstmark, and new backers, including World Innovation Lab, Atlassian Ventures and PSP Growth, also participated in the round. The company produces a tool that allows enterprise business users to quickly generate and distribute synthetic AI video clips that can create photorealistic, lifelike human avatars that stand in for people. It also uses AI to assist with editing and producing the end videos, doing away with complicated production software. Last year, Synthesia added numerous updates to its platform including personalized avatars created using webcam or smartphones that can be paired with a clone of the user's own voice. The avatar looks like the person, sounds like them and can speak in over 30 different languages while also having a full-body avatar with moving arms and hands that gesture while speaking. For other users who don't want the personal touch, it's possible to select from over 230 pre-built lifelike avatars that can speak in over 140 languages. Synthesia's video player allows it to automatically play in the viewer's language, making sharing videos easier to distribute. The company also added the capability to include multiple avatars in one scene to recreate dialogues on any topic. "Since we founded the company in 2017 we've believed that AI would rapidly shift communication from text to high-fidelity formats like video and audio. That vision is now a reality," said Victor Riparbelli, chief executive and co-founder of Synthesia. Riparbelli said the company currently has over 60,000 customers, ranging from the world's largest brands and thousands of small businesses. The new investment will go towards supporting the development of the company's product talent pool which currently includes 400 employees. Looking to the future, Synthesia said it intends to add features that will allow enterprise users to generate interactive video experiences for customers such as clickable hotspots, embedded forms and quizzes. It also intends to build the next generation of AI avatars that are more expressive with body language beyond just broad arm and hand motions, by using their entire body when they speak - such as touching hips, folding arms and rubbing chin.

Synthesia Hits $2.1 Billion in Valuation After Latest Fundraise

(Reuters) - AI video avatar platform Synthesia said on Wednesday it has raised $180 million in a new funding round led by venture capital firm NEA, giving the UK-based company a valuation of $2.1 billion. The valuation makes Synthesia the most valuable generative AI media firm in the UK, the company said, citing data from Dealroom. It was valued at $1 billion in June 2023. Synthesia's technology allows businesses to generate custom AI avatars used in instructional and corporate videos. Its more than 60,000 customers include companies such as Zoom Communications, Heineken, Inter IKEA Group and over 60% of the Fortune 100 companies. AI and tech-focused firms have been at the center of a surge in venture capital funding, as investors, drawn by the explosive success of OpenAI's ChatGPT, pour money into the nascent technology. AI startups accounted for over 25% of European venture capital last year, according to Yoram Wijngaarde, founder and CEO of data platform Dealroom. Synthesia's Series D funding round saw participation from new investors, including Atlassian Ventures and PSP Growth, along with existing backers GV and MMC Ventures. The latest fundraise brings the firm's total capital raised to over $330 million. "There are a lot of exciting developments in AI but few are able to demonstrate real value and application like Synthesia," said Momei Qu, managing director at PSP Growth. The funding will bolster Synthesia's expansion in North America, Europe, Japan and Australia. The company currently employs over 400 people in offices across seven countries, including Denmark, Germany and the U.S. Synthesia, which generates more than half of its revenue from the U.S., is a major player in the growing AI video avatar space and competes with startups such as Colossyan, HeyGen and Veed. (Reporting by Deborah Sophia in Bengaluru; Editing by Alan Barona)

AI Avatar Startup Synthesia Valued at $2.1 Billion | PYMNTS.com

British artificial intelligence (AI) firm Synthesia is now a $2.1 billion company. The London-based firm announced Wednesday (Jan. 15) that it had raised $180 million in new funding to help develop its platform for creating and publishing AI videos. "Four years ago, we brought the world's first AI avatars to life. Today, the Synthesia platform has evolved way beyond that -- dubbing, screen recording, translation, collaboration, assisted creation and so much more enable our customers to communicate with unmatched engagement and efficiency," the company said in its announcement. In the coming year, Synthesia added, it will introduce new AI-powered video offerings, pairing the company's avatar technology with large-language models and a new video player. The company -- citing information from Dealroom -- says it is now the largest generative AI media company in the U.K. by valuation, and the second biggest AI firm overall. Synthesia has offices in seven countries and customers in many markets and industries, generating a little more than half of its revenue from the U.S. Synthesia was valued at just north of $1 billion 18 months ago after raising $90 million in a Series C funding round. As covered here last year, Synthesia's technology includes its "Expressive Avatars," which aim to shake up professional video production by blurring the lines between virtual and real characters. The technology is said to do away with the need for cameras, microphones, actors and lengthy editing processes, cutting down on production costs. "The biggest point here is that avatar usage is going to continue to grow," Ben Ferguson, COO at Soundscape VR, which uses generative AI, told PYMNTS. "And more than likely, we will exist in a world where we have multiple avatars for different platforms. An avatar that has been created or assisted in creation by AI can really help narrow down the specific case use of those avatars and refine the look and appearance of what might be needed." Meanwhile, Victor Riparbelli, chief executive of Synthesia, told the Financial Times Wednesday that the funding round demonstrates investor enthusiasm in the U.K. AI sector. "The UK is the only country in the European region right now that has a real shot at becoming a top-three AI superpower," he said. But as that report notes, the financing arranged by tech companies in Great Britain and Europe are overshadowed by investments into Chinese and American firms, with critics arguing that startups in Europe are hindered by the region's stricter AI regulations.

Synthesia hits $2.1 bln in valuation after latest fundraise

Jan 15 (Reuters) - AI video avatar platform Synthesia said on Wednesday it has raised $180 million in a new funding round led by venture capital firm NEA, giving the UK-based company a valuation of $2.1 billion. The valuation makes Synthesia the most valuable generative AI media firm in the UK, the company said, citing data from Dealroom. It was valued at $1 billion in June 2023. Synthesia's technology allows businesses to generate custom AI avatars used in instructional and corporate videos. Its more than 60,000 customers include companies such as Zoom Communications, Heineken, Inter IKEA Group and over 60% of the Fortune 100 companies. AI and tech-focused firms have been at the center of a surge in venture capital funding, as investors, drawn by the explosive success of OpenAI's ChatGPT, pour money into the nascent technology. AI startups accounted for over 25% of European venture capital last year, according to Yoram Wijngaarde, founder and CEO of data platform Dealroom. Synthesia's Series D funding round saw participation from new investors, including Atlassian Ventures and PSP Growth, along with existing backers GV and MMC Ventures. The latest fundraise brings the firm's total capital raised to over $330 million. "There are a lot of exciting developments in AI but few are able to demonstrate real value and application like Synthesia," said Momei Qu, managing director at PSP Growth. The funding will bolster Synthesia's expansion in North America, Europe, Japan and Australia. The company currently employs over 400 people in offices across seven countries, including Denmark, Germany and the U.S. Synthesia, which generates more than half of its revenue from the U.S., is a major player in the growing AI video avatar space and competes with startups such as Colossyan, HeyGen and Veed. Reporting by Deborah Sophia in Bengaluru; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Technology

Synthesia, Startup Making Uncanny AI Avatars, Raises at $2.1 Billion Valuation

Synthesia, an artificial intelligence startup that lets businesses produce lifelike video avatars, has raised $180 million in a funding round making it one of Britain's largest AI companies. The Series D financing doubles the startup's valuation to $2.1 billion, the company said on Wednesday. Venture capital firm NEA Management lead the round, which included Atlassian Ventures and Penny Pritzker's investment vehicle. Prior backers GV and MMC Ventures also participated. To date, Synthesia has raised $330 million.

AI video company Synthesia raises $180m to support growth

The company, which is headquartered in London, develops an AI-powered video communications platform. UK-based start-up Synthesia has seen its valuation double to $2.1bn after it secured $180m in funding, which it says it will use to develop "a new generation of AI-powered video experiences". Established in 2017, the London company, which is led by its CEO Victor Riparbelli, specialises in using generative artificial intelligence (GenAI) to enable customers to create realistic video content and can be used, for example, to build avatar-based videos from text documents for sales and marketing. At present, Synthesia currently has offices in seven countries and generates more than half of its revenue from the US. The Series D funding round was led by NEA, with participation from existing investors including GV, MMC Ventures and FirstMark, in addition to new backers such as the WIL, Atlassian Ventures and PSP Growth. The latest round brings the company's total capital raised to more than $330m. Synthesia intends to use the funds to drive its next phase of growth, in an effort to support product development and talent growth. It also intends to drive the expansion of its AI-powered video platform in order to "meet the evolving needs of enterprises in several markets, including Japan, Australia, Europe and North America". To coincide with the funding news, the company also announced the appointment of Peter Hill as its chief technology officer (CTO), who previously acted as CEO and CPO at Wildfire Studios, as well as a 25-year employment term at Amazon and AWS. Riparbelli said that the investment will help the company to develop AI-powered video experiences that are "interactive, real-time and personalised, offering possibilities we could have only imagined when we founded the company". Riparbelli added that he is "excited to bring these experiences" to Synthesia's customers. Philip Chopin, MD at NEA UK, commended Synthesia for its "commitment to enterprise-grade solutions". According to Dealroom, which is a global provider of data and intelligence on start-ups, following the funding round, Synthesia is now the largest GenAI media company in the UK by valuation, and the second largest in the overall AI category. "Synthesia's Series D signals that European AI is picking up where they left off in 2024. AI start-ups accounted for over 25pc of European venture capital last year, up from 15pc just four years ago," said Dealroom CEO Yoram Wijngaarde. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Synthesia becomes UK's biggest GenAI firm with $2.1B valuation

Synthesia has claimed the crown of Britain's biggest GenAI company after raising $180mn at a $2.1bn valuation. The London-based business generates lifelike avatars for video content. Enterprises use the software to produce training content and corporate communications. The tech has made Synthesia a leader in the burgeoning synthetic media industry. According to the startup, over 60,000 businesses are customers -- including more than 60% of the Fortune 100. Investors have also shown a growing interest. In 2023, Synthesia earned unicorn status after securing $90 million in Series C funding at a valuation of $1 billion. The latest cash injection creates another milestone. According to Dealroom, Synthesia is now the UK's largest GenAI media company by valuation. The startup wants the fresh funds to fuel a new phase of growth. At the core of the plans is Synthesia 2.0 -- a product billed as the world's first enterprise AI video platform. Development of the system is now underway. Synthesia is also preparing for the next generation of synthetic media. Victor Riparbelli, the company's CEO and co-founder, expects big breakthroughs from blending AI videos with reasoning systems -- such as large language models. "We will unlock a new type of media that can think, narrate, and personalise content for us," he told TNW via email. "These new interfaces will be centred around intuitive, human communication that is much more effective than text. You could imagine an AI that connects to your Spotify and teaches you music theory based on your skill level and favourite artists. |At work, we may interact with virtual guides that help us make buying decisions, coach us and teach us new skills like you would with a tutor in the real world." Naturally, Riparbelli also shared the funding news in an AI video. Fully generated with Synthesia, the clip summarises the announcement in eight languages.

Nvidia-backed AI video platform Synthesia doubles valuation to $2.1 billion

LONDON -- Synthesia, a video platform that uses artificial intelligence to generate clips featuring multilingual human avatars, has raised $180 million in an investment round valuing the startup at $2.1 billion. That's more than than double the $1 billion Synthesia was worth in its last financing in 2023. The London-based startup said Wednesday that the funding round was led by venture firm NEA with participation from Atlassian Ventures, World Innovation Lab and PSP Growth. NEA counts Uber and TikTok parent company ByteDance among its portfolio companies. Synthesia is also backed by chip giant Nvidia. Victor Riparbelli, CEO of Synthesia, told CNBC that investors appraised the businesses differently from other companies in the space due to its focus on "utility." "Of course, the hype cycle is beneficial to us," Riparbelli said in an interview. "For us, what's important is building an actually good businesses." Synthesia isn't "dependent" on venture capital -- as opposed to companies like OpenAI, Anthropic and Mistral, Riparbelli added. These startups have raised billions of dollars at eye-watering valuations while burning through sizable amounts of money to train and develop their foundational AI models.

AI Startup Synthesia Hits $2.1B Valuation with New Round

Synthesia, an artificial intelligence startup that lets businesses produce lifelike video avatars is expanding into Japan and Australia after raising $180 million in a funding round making it one of Britain's largest AI companies. Synthesia CEO Victor Riparbelli told Bloomberg's Tom Mackenzie that the company has graduated from an AI avatar company into an AI video platform for enterprises. (Source: Bloomberg)

Synthesia snaps up $180M at a $2.1B valuation for its B2B AI video platform | TechCrunch

As the world continues to work through how to handle the explosion of deepfake content online, it seems that not all AI-created videos are stirring controversy. Synthesia, a London startup building products around highly realistic AI avatar technology, says it's a big hit with enterprises, with some 60,000 of them -- 1 million users -- tapping the tech to build avatar-based videos from text documents, for sales and marketing, for training and more. Now VCs also want to get in on the action. Synthesia today confirmed that it has closed a funding round of $180 million, a Series D that catapults the company's valuation to $2.1 billion. NEA is leading the round, with participation from new investors WiL (World Innovation Lab), Atlassian Ventures, and PSP Growth, plus previous backers GV and MMC Ventures. Synthesia has raised $330 million to date. The startup plans to use the funding for hiring, particularly to expand in Asia Pacific - the bulk of Synthesia's business today is in Europe and North America - and to continue evolving its products. "We're doubling down on all the things we're already doing right," said CEO and co-founder Victor Riparbelli, in an interview. "We want to make our avatars better." He said the company's "long roadmap" includes more realistic motion; being able to port avatars into different environments; avatars that can interact with objects to, for example, provide physical demonstrations; and avatars that can interact with users. It's also going to be eating some of its own dogfood by building more "agents" to help customers create avatar-based content more easily. One area where it's not chasing activity is in M&A. Synthesia to date has made no acquisitions and Riparbelli said its preference is for building its technology in house, alongside using APIs for what it does not build itself. For example, it works with Eleven Labs for voice, and it taps and fine-tunes a variety of third-party Large Language Models instead of building its own. Synthesia's round has been in the works for at least a few months: The Information reported that it was raising $150 million in November 2024. For a little more fundraising context, it's been about 18 months since Synthesia last disclosed funding: in June 2023, it closed a $90 million round on a $1 billion valuation with previous backers including Kleiner Perkins and Accel. In the interim, AI companies have been a huge magnet for VCs, providing a bright spot in a somewhat lackluster funding landscape. AI startups accounted for more than 37% of the $368.5 billion invested across all startups in 2024 globally, according to PitchBook data. In the U.S. the proportion was even more stark, with AI startups garnering nearly 50% of the $209 billion invested last year. Synthesia says it now has 60,000 businesses as customers, compared to 50,000 in June 2023, and its aim has been to carve out its own niche in the space as the go-to platform for enterprises that are looking to build out their video interactions. It's doing so at a time when advanced AI video functionality is getting increasingly more common. There are startups that are working on the ability to extrapolate full product videos out of basic documents, while others aim to build avatars capable of real-time interactions and real-time video assistants. Some claim to be able to create lifelike avatars of their users from just one minute of video. (A simple test to see just how crowded the market is here is to put Synthesia into Google, and check out how many companies are buying search ads against its name. There are a lot.) Synthesia is not immune to the product race. It's been building a "2.0" version of its platform for a while now and has already released a number of related features, including its own take on personal avatars that users can make with a laptop camera or phone that feature emotions; a Chrome extension that builds basic videos based on screen data; its own version of an AI video assistant that can convert documents into videos; multi language options; and collaboration features for people to edit a video simultaneously. More to the point, though, Riparbelli believes that the company has an edge by focusing itself squarely on business users, and its investors say that is what makes the startup attractive. "Synthesia is one of only a handful of AI companies that can take real cutting edge AI and actually translate those into something with real utility," said Vidu Shanmugarajah, a partner at Google Ventures in London, in an interview. "It has extreme customer focus. They are obsessed with driving value in a practical setting. Putting that together in a platform that's safe and compliant is super hard to do." It's interesting, too, to see Atlassian investing in this round.The company has been injecting AI functionality into its various apps, and it seems only a matter of time that a platform like Jira might start adding in more video tools into that mix, opening the door for a collaboration with its portfolio company.

UK artificial intelligence start up Synthesia hits $2bn valuation

London-based artificial intelligence start up Synthesia said it secured a valuation of $2.1bn, in a boost to the UK group's effort to challenge global rivals in the race to build applications and tools based on generative AI. The company, which uses AI to create realistic video avatars based on humans, announced on Wednesday it has closed a new $180mn in new funding round led by US venture capital group NEA. Existing investors Google Ventures and Accel Partners also participated in the round. Previous investors include Silicon Valley heavyweight Nvidia. Victor Riparbelli, chief executive of Synthesia, said the deal signalled investor enthusiasm in the UK's AI sector, which is home to Google's AI arm DeepMind, as well as leading universities such as Oxford and Cambridge with a strong record of training leading experts in the field. "The UK is the only country in the European region right now that has a real shot at becoming a top-three AI superpower," said Riparbelli in an interview with the Financial Times. UK Prime Minister Sir Keir Starmer unveiled new AI policies on Monday designed to boost economic growth, saying he believes the UK "will become the best place to start and scale an AI business". However, the sums raised by tech groups in the UK and Europe are dwarfed by the funding available in the US and China, with critics suggesting European start ups are also hampered by more stringent regulation around AI models. "We have a brand problem in the UK that the government can do a bit more to tell the world we are open for business, encourage people to come here [and] not screw it up by overregulating or changing tax policies too much," said Riparbelli. Synthesia was founded in 2017 and has 400 employees in offices in London, New York and across Europe. It primarily uses proprietary AI models to replicate humans and develop avatars that can be prompted by text and deliver speech in a realistic video. The company said it would use the new funding to make the avatars more lifelike, with a focus on helping businesses create them for corporate communications. "There is still a lot to do to make them more natural, more photoreal . . . enabling them to pick up objects and talk to each other in a room," Riparbelli added. "The things we are investing in are all about dialogue through videos of humans, so we are not going to be caught up in [generating] a video of a dog skateboarding at the beach but [instead] a presenter for a marketing video." The company has previously been embroiled in controversies over the creation of so-called "deepfakes" -- digital likenesses of real people. In one incident from 2023, faked online news reports in Venezuela were created using Synthesia's technology. The company said at the time the Venezuelan client was subsequently banned from using its service. Synthesia made £25.7mn in turnover last year, the majority of revenues coming from outside of Europe, according to Companies House filings. It reported post-tax losses of £23.6mn in the year ending December 31. Its competitors include start-ups such as HeyGen, a Los Angeles-based company that raised $60mn in June 2024, and New York-based ElevenLabs, which focuses on voice cloning and raised $80mn in January last year. Synthesia charges on a subscription basis allowing users to create a presenter-led video, which can read out text and translate it into different languages. The company said it had more than half of the Fortune 100 using its software, and its clients include Zoom, Xerox and Microsoft. "We are building what we think of as like PowerPoint 2.0, for your average office worker," Riparbelli added. "It is not super creative content; it is informative and educational content. These are people who don't have time to sit and prompt something 40 times to get something really interesting."