AI video platform Synthesia has raised $180 million, doubling its valuation to $2.1 billion, as venture capital shifts toward application-focused generative AI startups.
The NEA-led Series D also included Atlassian Ventures and existing backers Accel and Kleiner Perkins. The London-based company last raised funding in 2023 with a $90 million Series C, which valued it at $1 billion.
Founded in 2017, Synthesia’s platform uses AI to generate realistic avatars with synthetic voices designed for personalized marketing and training. The company produces videos in 140 languages, and its clients include Zoom and Amazon.
Since inception, Synthesia has secured over $330 million in VC funding. The company reported a turnover of £25.7 million and a £25.2 million pre-tax loss in 2023, according to a Companies House filing.
To say that 2024 was an outstanding year for generative AI would be an understatement. Deal value reached $46.9 billion, up over 118% compared to 2023. Deal count also rose, landing at 885 rounds for the year.
Outsized rounds for generative AI companies have become the norm, with the biggest investments going to foundational model developers such a OpenAI and Anthropic —the former’s Series B in October totaled $6.6 billion.
This year, investors are expected to shift their focus to companies building applications for businesses and consumers rather than the technology behind them.
Video generation has proven to be a popular area for generative AI. Big tech companies, including Google and ByteDance, have released their own offerings, while several startups have launched in the space with notable fundraises.
Last year, Los Angeles-based HeyGen raised a $60 million Series A led by Benchmark, while New York-headquartered ElevenLabs secured an $80 million Series B from investors including Andreessen Horowitz.
Synthesia founders Steffen Tjerrild, left, and Victor Riparbelli
Featured image courtesy of Synthesia
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