A British AI startup that creates realistic video avatars has almost doubled its valuation to $4bn (£3bn), giving a boost to Britain’s tech sector.
Synthesia was valued at $2.1 billion last year and moved into new offices in central London, marking the moment with a ceremony attended by the city’s mayor, Sadiq Khan, and Peter Kyle, then technology secretary.
The company announced on Monday that it had raised $200 million in its latest funding round led by existing investor Google Ventures, valuing the British company at $4 billion. Google Ventures is the venture capital arm of the search company.
Synthesia also uses human actors to generate digital avatars of people, giving employers the ability to create replicas of their staff. These avatars are introduced into corporate videos in various scenarios such as workplace health and safety, offering advice on cybersecurity and how to better communicate in the workplace.
The company counts 70% of FTSE 100 companies as customers, including NatWest, Lloyds Bank and British Gas. It is also used by unincorporated bodies such as the NHS, the European Commission and the United Nations.
The company is also developing new avatars to help train employees and impart new skills through scenarios such as role-playing and customized instructions.
Steffen Tjerrild, co-founder of Synthesia, said the rising valuation reflects the dedication of the company’s longtime supporters rather than investment hype surrounding the AI sector. “Existing investors are seeing progress, they’re seeing the numbers, they’re seeing the interest compounding year after year,” he said. “It also speaks to how little this [a case of] Outside investors are trying to hype it up, but validation from existing investors is more important than that. ”
Last year, leading British technology investor James Anderson said it was “disconcerting” that the valuations of AI startups such as OpenAI and Anthropic were rising rapidly. Cerildo said Synthesia is focused on executing its business plan, adding that the plan is backed by investors who are long-term supporters.
He said: “This round is being led by insiders, primarily existing investors, who deeply understand the business and have seen it run and improve over many years.”
According to its latest published financial results, Synthesia had revenue of $58.3 million in 2024, but a pre-tax loss of $59.2 million, which the company said reflected investments in people, technology and new offices. Synthesia said it expects revenue to reach $200 million this year.
The $4 billion valuation puts the company on par with British broadcaster ITV, which is valued at £3.1 billion. Tjerrild’s stake in Synthesia is currently worth $160 million, the same as the company’s CEO and fellow co-founder Victor Riparbelli.
Synthesia was founded in 2017 by two Danes and computer scientists Matthias Niesner and Lourdes Agapito.
Last year, the Mayor of London said Synthesia had opened a new office and said it was “going incredibly well”. But in a speech this month, Khan said that AI, if used recklessly, would “usage a new era of mass unemployment” as intelligent autonomous systems prove to be a cheap replacement for humans.
Gerild said he believes AI will allow companies to hire more staff. “We are an AI-first company with 600 employees and hired 40% more people last year,” he said. “As a business owner myself, more productive employees means we can invest and hire more people.
