Latent Technology, a London-based game technology startup, has successfully closed an $8 million seed funding round. The round was co-led by AlbionVC and Spark Capital, with participation from Root Ventures and Alumni Ventures. The company develops AI-driven physical animation technology, offering developers innovative workflows to create emergent, real-time animation behaviors with minimal input. This contrasts with traditional methods that rely on pre-defined movement sequences, limiting real-time interactivity.
The funding will primarily support the continued development of Latent's technology, specifically the Latent Behaviour Engine. This engine aims to seamlessly integrate generative physics-based emergent behaviors into game development. Latent is currently running a closed beta with select studios and plans to release further tech demos later this year to showcase its capabilities.
Latent's technology, built on its proprietary generative physics animation model "Phoenix," enables autonomous character behaviors that respond dynamically to the game environment. This creates fundamentally new interactive experiences where characters and environments react in real time to player input, rather than following pre-scripted sequences. The company believes this approach will revolutionize game development by significantly reducing costs and enhancing player experience.
The investment will also facilitate team expansion, with plans to double the current six-person team by year's end. The company is focused on creating a product that empowers developers to easily create emergent physical behaviors, eliminating the need for extensive manual animation work.

