A British AI startup creating realistic video avatars has almost doubled its valuation to $4 billion (£3 billion), giving a boost to the UK technology sector.
Synthesia was valued at $2.1 billion last year and moved into new offices in central London, with a ceremony attended by the city’s mayor Sadiq Khan and then technology secretary Peter Kyle.
On Monday, it announced its latest funding round led by existing investor, Google Ventures, raising $200 million and valuing the British company at $4 billion. Google Ventures is the search firm’s venture capital arm.
Synesthesia uses human actors to create digital avatars of people and also offers employers the ability to create replicas of their employees. Those avatars are then deployed by organizations in corporate videos across a range of scenarios such as health and safety in the workplace, giving advice on cyber security and how to communicate better at work.
The company counts 70% of the FTSE 100 as customers, including NatWest, Lloyds Bank and British Gas. It is also used by non-corporate bodies including the NHS, the European Commission and the United Nations.
The startup is also developing new avatars that will help train employees and give them new skills through scenarios like role playing and giving tailored explanations.
Synthesia’s co-founder, Stefan Tjerild, said the increased valuation reflected the commitment of the company’s longtime supporters rather than a promotion for investment in the AI field. “Existing investors have seen the progress, seen the numbers, seen them grow year over year,” he said. “It’s also telling a story that it’s less (a matter of) outside investors trying to promote it, but more about validation from existing investors.”
Last year, James Anderson, a leading British tech investor, said he was surprised by the sharp rise in valuations of AI startups like OpenAI and Anthropic. Jerild said Synthesia was focused on executing its business plan, which, he said, was supported by investors who were long-term supporters.
“This round is led by insiders or primarily existing investors who deeply understand the business, who have seen the execution and improvement of the business over many years,” he said.
Synthesia made revenues of $58.3m in 2024, but made a pre-tax loss of $59.2m, according to its latest published accounts, which the company said reflected its investment in headcount, its technology and new offices. Synthesia said it is on track to generate $200 million in revenue this year.
The $4 billion valuation puts the company on par with UK broadcaster ITV, which is worth £3.1 billion. Tjreild’s stake in Synthesia is now worth $160 million, equal to that of its chief executive and fellow co-founder, Victor Ripperbelli.
Synthesia was founded in 2017 by two Danish citizens, as well as computer scientists Matthias Niessner and Lourdes Agapito.
Last year, the Mayor of London said that Synthesia was doing “incredibly well” since they opened their new offices. However, in a speech this month, Khan said that if AI was used carelessly it would “usher in a new era of mass unemployment” as intelligent, autonomous systems prove to be cheap replacements for humans.
Jerild said he believes AI will enable businesses to hire more employees. “We are an AI-first company, we have 600 employees and we’ve hired 40% more people than last year,” he said. “As a business owner, if my employees become more productive it means I can invest and hire more people.
