British AI startup Synthesia secures a $180 million funding round led by NEA, valuing the company at $2.1 billion. The company, known for its video platform utilizing AI to create multilingual human avatars, differentiates itself by focusing on 'utility' and security, attracting large enterprise customers.
British artificial intelligence startup Synthesia announced on Wednesday that it has secured $180 million in funding, led by NEA. This latest investment round catapults Synthesia 's valuation to $2.1 billion, more than double its $1 billion valuation from its previous funding round in 2023. Synthesia CEO Victor Riparbelli emphasized in an interview with CNBC that his company is not reliant on venture capital , unlike some competitors such as OpenAI and Anthropic.
Synthesia, a London-based company, specializes in a video platform that leverages artificial intelligence to create videos featuring multilingual human avatars. The company stated that the funding round, which also saw participation from Atlassian Ventures, World Innovation Lab, and PSP Growth, was driven by investors recognizing Synthesia's unique focus on 'utility.' Riparbelli highlighted the importance of building a sustainable business, stating, 'Of course, the hype cycle is beneficial to us, but for us, what's important is building an actually good business.'This latest investment comes amidst a surge in funding for AI startups. Companies like OpenAI and Anthropic have raised billions of dollars at sky-high valuations, investing heavily in training and developing their foundational AI models. However, Synthesia's approach differs. Eric Liaw, a London-based partner at VC firm IVP, pointed out that startups at the application layer of AI, like Synthesia, haven't received the same level of investor hype as infrastructure-focused firms. Liaw explained that application layer companies typically require less capital and, consequently, their valuations aren't as astronomical as those of companies like Nvidia. Riparbelli stated that the funds raised in this latest round will be channeled into further product development, enhanced security measures, and compliance initiatives.Last year, Synthesia made significant advancements to its platform, including the introduction of AI avatars that can be created using a laptop webcam or smartphone. The platform now also offers full-body avatars with arms and hands and a screen recording tool guided by an AI avatar. Synthesia has also been actively addressing concerns about online harms. The company conducted a series of tests with the National Institute of Standards and Technology, led by Rumman Chowdhury, a prominent data scientist and former head of AI ethics at Twitter (now X), demonstrating how its compliance controls effectively mitigate attempts to create non-consensual deepfakes or utilize its avatars for harmful purposes like promoting suicide, adult content, or gambling.Synthesia's commitment to security and compliance has attracted the attention of large enterprise customers, particularly in the United States. Over half of Synthesia's annual revenue now originates from U.S. customers, while Europe accounts for nearly half. The company has also been expanding its workforce, recently appointing former Amazon executive Peter Hill as its chief technology officer. Synthesia currently employs over 400 people globally. The investment has been lauded by U.K. Technology Minister Peter Kyle, who stated that it 'showcases the confidence investors have in British tech' and 'highlights the global leadership of U.K.-based companies in pioneering generative AI innovations.'
AI Artificial Intelligence Synthesia Funding Venture Capital Video Production Enterprise Customers Security Compliance
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