Synthesia Raises $180M at $2.1B Valuation, Eyes Expansion in Asia Pacific

London-based AI video platform Synthesia has secured a significant milestone with its latest funding round, raising $180 million in a Series D round that propels its valuation to $2.1 billion. The funding was led by NEA, with participation from new investors WiL (World Innovation Lab), Atlassian Ventures, and PSP Growth, alongside existing backers GV and MMC Ventures. This brings Synthesia’s total funding to date to $330 million.

Synthesia Raises $180M at $2.1B Valuation, Eyes Expansion in Asia Pacific
Synthesia Raises $180M at $2.1B Valuation, Eyes Expansion in Asia Pacific

London-based AI video platform Synthesia has secured a significant milestone with its latest funding round, raising $180 million in a Series D round that propels its valuation to $2.1 billion. The funding was led by NEA, with participation from new investors WiL (World Innovation Lab), Atlassian Ventures, and PSP Growth, alongside existing backers GV and MMC Ventures. This brings Synthesia’s total funding to date to $330 million.

Synthesia’s platform, which enables businesses to create avatar-driven videos from simple text inputs, has been adopted by 60,000 enterprises globally, representing over 1 million users. These businesses utilize the platform for a range of purposes, including sales, marketing, and employee training. The company has seen substantial growth in its user base, up from 50,000 enterprises in mid-2023.

The new funding will be directed towards expanding Synthesia’s operations in the Asia Pacific region, an area where the company sees significant potential. Currently, the majority of its business is concentrated in Europe and North America. CEO and co-founder Victor Riparbelli stated, “We’re doubling down on all the things we’re already doing right. We want to make our avatars better.” He emphasized the company's focus on enhancing realism, enabling avatars to interact with objects and environments, and introducing features that allow avatars to engage with users more dynamically.

Synthesia has maintained a strategy of in-house technology development rather than pursuing acquisitions. Riparbelli noted that the company relies on external APIs for specific functionalities, such as voice technology from Eleven Labs, and adapts third-party large language models instead of building its own.

The AI sector continues to draw significant investment interest, with startups in the field accounting for over 37% of the $368.5 billion in global venture funding in 2024, according to PitchBook. Despite ongoing challenges such as copyright disputes, ethical concerns over deepfakes, and the environmental impact of AI model training, the sector remains a focal point for innovation and growth.

Synthesia’s platform stands out for its enterprise focus, positioning itself as a leading tool for companies seeking to streamline video creation. Recent updates to its platform include personal avatars, multi-language support, collaborative editing tools, and an AI video assistant that converts documents into video formats. These developments aim to keep Synthesia competitive in a rapidly evolving market, where numerous startups are pushing the boundaries of AI-driven video capabilities.

Investors see Synthesia’s practical applications as a key differentiator. Vidu Shanmugarajah, a partner at Google Ventures, remarked, “Synthesia is one of only a handful of AI companies that can take real cutting edge AI and actually translate those into something with real utility. It has extreme customer focus.”

The company’s growing reputation is further bolstered by its inclusion in the UK government’s AI action plan, which highlights Synthesia as a potential partner for modernizing public services through AI-driven innovations. This recognition underscores the company’s impact and future potential in both private and public sectors.

As Synthesia eyes further advancements and geographic expansion, it remains focused on consolidating its position as a leader in AI-powered video solutions for businesses.