Synthesia, a video platform utilizing artificial intelligence to create clips with multilingual human avatars, has secured $180 million in funding, valuing the startup at $2.1 billion. This valuation is more than double the $1 billion Synthesia was valued at in its previous financing round in 2023. The investment was led by venture firm NEA, with contributions from Atlassian Ventures, World Innovation Lab, and PSP Growth. NEA, known for its investments in companies like Uber and ByteDance, is one of the leading investors in this round. Synthesia also has the backing of chip giant Nvidia.
CEO Victor Riparbelli highlighted that investors recognized Synthesia’s unique focus on “utility” compared to other companies in the sector. He emphasized the importance of building a strong business amidst the industry’s hype cycle. Unlike some competitors heavily reliant on venture capital, Synthesia aims for sustainable growth. Other AI-driven startups in the video production space, such as Veed.io and Runway, are also making waves.
Eric Liaw from VC firm IVP noted that companies in the AI application layer, like Synthesia, may not attract as much hype as those in the infrastructure layer. The latest funding will support Synthesia’s continued product development, security enhancements, and compliance efforts. The company has made significant platform updates, including AI avatars creation using webcams, full-body avatars, and enhanced AI safety measures.
Synthesia’s commitment to security and compliance has resonated with U.S. enterprise customers, driving increased interest and revenue from the region. The company’s workforce has expanded, with the recent appointment of Peter Hill as Chief Technology Officer. Synthesia’s growth aligns with Prime Minister Keir Starmer’s vision to position the U.K. as a global AI leader, as highlighted by U.K. Technology Minister Peter Kyle, who praised the confidence investors have in British tech and the innovative strides made by U.K.-based companies in generative AI technologies.
