Generative AI for video startup Synthesia raised $90 million in Series C funding at a valuation of $1 billion. The round was led by Accel Partners, and included participation from NVentures, the venture capital arm of NVIDIA, as well as Kleiner Perkins, GV, Firstmark Capital, Alex Wang, Olivier Pomel, and Amjad Masad.
Synthesia, having a year-over-year user growth rate of 456%, has generated over 12 million videos on its platform to date. The company caters to more than 50,000 businesses worldwide.
The Generative AI market is gaining considerable traction globally, forecasted to expand nearly 10 times by 2028, reaching an impressive $36 billion, according to S&P Global Market Intelligence. Video generation in particular is expected to experience a 5-year CAGR of 61% by 2028.
Synthesia’s platform enables any enterprise user to create top-tier instructional videos featuring AI avatars, which can be stock or customized. With production time savings reaching up to 95%, businesses not only save on cost but also experience an uptick in engagement from their employees and customers. On the back of these successes, Synthesia announced the addition of renowned names such as Tiffany’s, IHG, Moody’s Analytics, and entities of the United Nations to its clientele, which already hosts 35% of Fortune 100 companies.
This influx of capital will enable Synthesia to speed up its AI research, which focuses on solving some of the most complex challenges in the field. The startup's technology is strongly tied to the Technical University of Munich (TUM) and University College London (UCL).
Notable angel investors participated in the funding round as well, including: Micha Kaufman, CEO of Fiverr; Alex Wang, CEO of Scale; Linda Tong, COO of Webflow; Zhenya Loginov, CRO of Miro; Amjad Masad, CEO of Replit; Alex Estevez, former CFO of Atlassian; Olivier Pomel, CEO of Datadog; Nicolas Brusson, CEO of BlaBlaCar; and Praveer Melwani, CFO of Figma. Their investment in Synthesia underscores the faith that these influential figures in the tech industry have in the company's vision and its potential to redefine video production through artificial intelligence.
RunwayML recently released their Generative AI for video tool, RunwayML Gen-2, providing Text to Video generation.
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