As the world grapples with the surge of deepfake content online, not all AI-generated videos are causing controversy. Synthesia, a startup in London that focuses on cutting-edge AI avatar technology, is gaining traction among enterprises. Around 60,000 businesses, with about 1 million users, are using Synthesia’s technology to create avatar-based videos from text documents, for sales and marketing, training, and more.
Venture capitalists are now showing interest in Synthesia. The startup recently announced closing a $180 million Series D funding round, leading to a valuation of $2.1 billion. NEA is leading the round, with new investors like WiL (World Innovation Lab), Atlassian Ventures, and PSP Growth, alongside existing backers GV and MMC Ventures. Synthesia has raised a total of $330 million.
The startup plans to utilize the funding to hire more talent, with a focus on expanding in the Asia Pacific region. The majority of Synthesia’s business currently operates in Europe and North America. CEO and co-founder Victor Riparbelli mentioned that they aim to improve their avatars with more lifelike motion, interaction with objects, and users, among other features. The company is also working on developing more “agents” to simplify the creation of avatar-based content for customers.
Unlike some companies in the industry, Synthesia is prioritizing building its technology in-house rather than through acquisitions. Their strategy includes working with APIs from companies like ElevenLabs for voice technology and large third-party language models for specific functions. The startup’s latest funding round follows a successful period of fundraising, with AI startups attracting significant investment globally in 2024.
AI continues to face challenges such as power consumption, copyright issues, misuse for malicious purposes, and the potential for replacing human workers. However, companies like Synthesia are driving innovation in AI technology and attracting investors’ attention. With a focus on serving business users, Synthesia aims to solidify its position as a leading platform for enterprises seeking advanced video solutions.
Synthesia recently introduced new features like personal avatars, AI video assistants, multi-language options, and collaboration tools. Investors believe that the startup’s commitment to delivering practical value to customers sets it apart in the AI space. Google Ventures partner Vidu Shanmugarajah praised Synthesia’s customer-centric approach and ability to translate advanced AI technology into practical solutions.
The startup’s emphasis on business users has captured the interest of investors like Atlassian, known for integrating AI features into its products. As Synthesia continues to enhance its platform, collaborations with companies like Atlassian could further drive innovation in video technology for business applications.
