London-based AI avatar startup Synthesia announced a $180 million funding round, bringing its valuation to an impressive $2.1 billion. This funding milestone underscores Synthesia’s rapid growth and its evolution beyond AI avatars to a broader suite of AI-powered video creation tools.
The platform now offers dubbing, screen recording, translation, collaboration, and other features, enabling users to create engaging, efficient video content.
The company plans to further expand its offerings by combining its avatar technology with large-language models and an innovative video player, aiming to revolutionize video production.
Synthesia claims to be the largest generative AI media company in the U.K. and the second-largest AI firm overall, according to Dealroom data.
With offices in seven countries and a client base spanning industries and markets, the company generates over half of its revenue from U.S. customers. The startup previously raised $90 million in a Series C round 18 months ago, valuing it at just over $1 billion at the time.
Synthesia’s cutting-edge “Expressive Avatars” blur the boundaries between virtual and real characters, eliminating the need for traditional production tools like cameras and microphones.
By streamlining video creation and reducing costs, this technology is set to transform professional video production. Ben Ferguson, COO of Soundscape VR, noted that AI-assisted avatars are poised to grow significantly, providing refined, use-case-specific options for different platforms.
CEO Victor Riparbelli highlighted the enthusiasm of investors in the U.K. AI sector, emphasizing that the country has a strong potential to become a leading global AI superpower.
However, critics point out that while the U.K. leads in Europe, its tech investments are dwarfed by the larger funding ecosystems of China and the U.S., where looser AI regulations create a more competitive edge.
