AI-generated video content is making big waves, but not always the controversial kind. Take Synthesia, for example. This London-based startup is reshaping how enterprises use video, thanks to their AI-driven avatar technology. With over 60,000 companies leveraging their platform—spanning industries like sales, marketing, and training—Synthesia is proving that not all AI innovation garners skepticism. In fact, it’s gaining serious traction.
Adding to the excitement, Synthesia just secured a massive $180 million Series D funding, driving its valuation to an impressive $2.1 billion. Major players like NEA led the round, with contributions from World Innovation Lab, Atlassian Ventures, PSP Growth, and returning backers like GV and MMC Ventures. So far, that brings the company’s total raise to $330 million. The plan now? Hiring talent for its Asia Pacific expansion (its current footprint is mostly in Europe and North America) and advancing its AI products.
According to CEO and co-founder Victor Riparbelli, the focus remains on pushing the boundaries of avatar technology. “We’re doubling down on doing what we do best,” Victor said. Key initiatives on their roadmap include improving avatar realism, enabling seamless interaction with different environments and objects, and integrating avatars that can engage with users interactively. Synthesia even plans to create AI-powered “agents” to simplify the video creation process for clients by essentially automating parts of their workflows.
Interestingly, Synthesia resists the trend of scaling through acquisitions. Instead, they prioritize in-house development while selectively integrating APIs for capabilities they don’t build internally. For example, collaborations with Eleven Labs for voice technology and the use of third-party Large Language Models (LLMs). This strategic, hands-on approach isn’t just a cost-efficiency play; it reflects their commitment to quality and control over their technology stack.
For a bit of historical perspective, Synthesia’s latest raise comes about 18 months after its previous funding round in June 2023, when it closed $90 million at a $1 billion valuation. The current funding surge happens against the backdrop of a booming AI industry. In 2024 alone, nearly 50% of U.S. venture capital investments went into AI startups, spotlighting how hot this space has become.
Challenges exist in the AI sector—from copyright concerns to the energy demands of running complex models. However, there’s undeniable momentum for companies like Synthesia capitalizing on the mainstream push for AI adoption. Case in point, the U.K. government recently named Synthesia as a key player in its grand AI action plan, where billions are being funneled into public service innovation powered by emerging tech.
What gives Synthesia an edge in a crowded market? It’s not just their avatars’ lifelike quality or features like multilingual capabilities and real-time collaboration tools. It’s their knack for staying laser-focused on business users. Their “business-first” ethos has earned them the trust of thousands of enterprises eager to elevate their video communication game. Vidu Shanmugarajah, a partner at Google Ventures, summed it up well: “Synthesia takes cutting-edge AI and makes it practically useful in a way that’s safe, compliant, and incredibly customer-focused.”
It’s also worth noting some tangible innovations Synthesia has rolled out recently. From tools that let users create custom avatars using personal devices to an all-new AI video assistant designed to transform text documents into professional-quality videos, they’re clearly working hard to stay ahead of competitors in the AI video space.
As AI transforms the way we work, learn, and engage, the question isn’t whether tools like Synthesia will become integral to how businesses operate—it’s how quickly they're going to make that leap.
