Synthesia has secured the crown as the UK's largest GenAI company after raising $180 million at a $2.1 billion valuation.
The London-based company generates lifelike avatars for video content. Companies use the software to create training content and for corporate communication.
The technology has made Synthesia a leader in the emerging synthetic media industry. According to the startup, over 60,000 companies are customers – including more than 60% of the Fortune 100.
Investors also showed growing interest. In 2023, Synthesia achieved unicorn status after securing $90 million in Series C funding at a $1 billion valuation.
The latest financial injection creates another milestone. According to Dealroom, Synthesia is now the UK's largest GenAI media company by valuation.
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The startup would like to use the fresh funds to initiate a new phase of growth. At the heart of the plans is Synthesia 2.0 – a product that is considered the world's first AI video platform for businesses. Development of the system is currently underway.
Synthesia is also preparing for the next generation of synthetic media. Victor Riparbelli, CEO and co-founder of the company, expects major breakthroughs by combining AI videos with reasoning systems – such as large language models.
“We will explore a new type of media that can think, tell and personalize content for us,” he told TNW via email.
“These new interfaces will focus on intuitive, human communication that is much more effective than text. You could imagine an AI connecting to your Spotify and teaching you music theory based on your skill level and your favorite artists.
“At work, we may interact with virtual guides who help us make purchasing decisions, coach us, and teach us new skills, just as you would with a tutor in the real world.”
Of course, Riparbelli also shared the funding news in an AI video. The clip, generated entirely with Synthesia, summarizes the announcement in eight languages.
Synthesia's position in Europe's GenAI landscape
It was announced today that Synthesia's Series D round was led by VC giant NEA. In addition to the new backers WiL, Atlassian Ventures and PSP Growth, the existing investors GV and MMC Ventures also took part.
The groundbreaking raise has renewed optimism about the European AI landscape. Yoram Wijngaarde, founder and CEO of Dealroom, is optimistic about developments on the continent.
“Synthesia’s Series D signals that European AI will pick up where it left off in 2024,” he said.
“AI startups accounted for over 25% of European venture capital last year, up from 15% just four years ago. In one of the most significant waves of technology in decades, Synthesia stands out among the emerging AI unicorns reshaping the landscape on this side of the Atlantic.”
The funding was also welcomed by politicians in Synthesia's home country, who announced new plans to “supercharge AI” this week.
Peter Kyle, the UK's science and technology minister, said the funding “shows investors' confidence in UK technology” and underlines the “global leadership” of the country's GenAI pioneers.
Riparbelli is also optimistic about the UK AI scene. He pointed to the combination of talent, capital and infrastructure. He also praised Britain's production of world leaders in the field.
“There are many countries that want to become AI superpowers, but only a few have a chance of actually succeeding,” he said.
“The UK is certainly in the top three because it has a combination of talent, capital and infrastructure. What’s also remarkable about the UK is that it produces not just regional players, but global leaders.”
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