London-based artificial intelligence startup Synthesia has raised $180 million in a new funding round, leading to a valuation of $2.1 billion, more than double its previous worth of $1 billion in 2023.
The round was led by the venture capital firm NEA, with participation from Atlassian Ventures, World Innovation Lab, and PSP Growth. Notably, Synthesia is also backed by tech giant Nvidia.
Synthesia’s platform leverages AI to create realistic video avatars, allowing users to generate video content with multilingual human-like figures. The company’s innovative approach has positioned it as a key player in the rapidly growing AI video generation space.
CEO Victor Riparbelli emphasized that while the company benefits from the broader AI hype, its focus remains on building a solid and sustainable business, rather than being dependent on constant venture capital funding. Unlike some other AI startups like OpenAI and Anthropic, Synthesia has maintained a more self-sufficient business model, which Riparbelli argues is based on utility-focused applications of AI technology.
The funding will be used to further develop the platform, particularly to enhance the lifelike qualities of its avatars and to improve tools for creating and hosting videos. With increased demand from large enterprises, particularly in the US, Synthesia is poised for growth, with notable clients including Zoom, Xerox, and Microsoft. The company’s avatars are now being used for corporate communications, training, and safety briefings across multiple languages.
Synthesia’s approach to AI video generation focuses on practical uses for businesses, offering what Riparbelli likens to “PowerPoint 2.0”—enabling corporate users to create informative and educational videos efficiently. This sets it apart from other AI video startups, such as Runway and Veed.io, which focus more on creative and entertainment content.
Despite competition from tech giants like OpenAI and Adobe, Synthesia has carved out a niche by focusing on producing realistic human avatars for business needs, rather than broader generative content. This specialized approach has enabled the company to continue growing while avoiding the larger-scale, more speculative investments that have characterized some other AI ventures.
With over 400 employees and offices in London, New York, and Europe, Synthesia is also expanding its hiring efforts, recently appointing former Amazon executive Peter Hill as its Chief Technology Officer.
With input from CNBC, the Financial Times, and Forbes.
