(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)
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