On Wednesday, the UK-based AI video avatar platform Synthesia said that it had raised $180 million in a fresh round of funding led by venture capital firm NEA, valuing the business at $2.1 billion.
Citing data from Dealroom, the company said that the valuation made Synthesia the most valuable generative AI media company in the UK. In June 2023, its value was $1 billion.
Businesses can create unique AI avatars for corporate and educational videos using Synthesia’s technology. Companies like Zoom Communications, Heineken, Inter IKEA Group, and more than 60% of the Fortune 100 are among its more than 60,000 clients.
Venture capital funding has surged in AI and tech-focused startups, as investors pour money into the emerging technology after being captivated by OpenAI’s ChatGPT’s spectacular success.
Yoram Wijngaarde, the founder and CEO of data platform Dealroom, claims that more than 25% of European venture money last year went to AI businesses.
In addition to current backers GV and MMC Ventures, new investors Atlassian Ventures and PSP Growth participated in Synthesia’s Series D fundraising round. With the most recent fundraising effort, the company has raised over $330 million in total.
Momei Qu, managing director at PSP Growth, stated, “There are many intriguing developments in AI, but few are able to demonstrate genuine value and application like Synthesia.”
The money will support Synthesia’s growth in Australia, Japan, Europe, and North America. At the moment, the company has offices in seven countries, including Denmark, Germany, and the United States, and employs over 400 individuals.
With over half of its income coming from the United States, Synthesia is a prominent competitor in the rapidly expanding AI video avatar market, competing with startups like HeyGen, Veed, and Colossyan.
