In the midst of handling the rise of deepfake content online, not all AI-generated videos are causing controversy. Synthesia, a London startup focused on realistic AI avatar technology, has gained popularity among enterprises. Around 60,000 businesses, totaling 1 million users, are utilizing the technology to create avatar-based videos for various purposes like sales, marketing, and training.
Venture capitalists are now showing interest in Synthesia. The company recently closed a Series D funding round of $180 million, pushing its valuation to $2.1 billion. NEA is leading the investment, with new investors such as WiL, Atlassian Ventures, and PSP Growth joining in, along with existing supporters like GV and MMC Ventures, bringing the total raised by Synthesia to $330 million.
The funding will primarily be used for expansion, with a focus on hiring in the Asia Pacific region. While Synthesia’s main markets are currently in Europe and North America, the company plans to enhance its products and make avatars more realistic through improved motion capabilities and interactions with users and objects, among other features.
Synthesia aims to differentiate itself by building its technology in-house rather than pursuing mergers and acquisitions. The company partners with firms like Eleven Labs for voice solutions and leverages third-party models for certain functionalities. The recent funding round has been in the works for some time and follows a trend of significant investments in AI startups.
While challenges exist in the AI industry, Synthesia stands out as a key player in the enterprise video interaction space, catering to over 60,000 businesses. The company’s strategic focus on business users and practical applications of AI technology has garnered attention from investors.
Atlassian’s investment in Synthesia’s latest round signals a growing interest in AI-powered solutions across different sectors. The collaboration between the two companies could lead to further advancements in video tools for business platforms like Jira.
