Synthesia nearly doubles valuation after $200m funding round

(Sharecast News) - British AI video startup Synthesia raised $200m in a funding round that nearly doubled its valuation to $4bn, it was reported on Monday, amid strong investor appetite for enterprise-focused artificial intelligence despite growing scrutiny of the sector's lofty price tags. The round was led by Google Ventures, with participation from existing backers including Nvidia's NVentures, Accel, New Enterprise Associates and Air Street Capital.

The valuation compared with $2.1bn at the company's previous funding round in early 2025, and placed Synthesia among the most valuable private AI firms in the UK.

Founded in 2017, Synthesia develops AI-generated video avatars used by organisations for corporate communications, training and marketing.

The company claims around 70% of the FTSE 100 are clients, alongside users such as the NHS, the European Commission and the United Nations.

It said its technology allows businesses to create studio-quality videos without cameras, studios or on-screen presenters, and it is increasingly focused on "agentic" video tools that enable interactive training and role-play.

Chief executive and co-founder Victor Riparbelli said the funding was aimed at scaling the business rather than capitalising on market hype, pointing to long-term support from existing investors.

The company reportedly planned to use the proceeds to expand its AI capabilities and accelerate growth in enterprise learning, internal knowledge sharing and sales enablement.

As part of the transaction, Synthesia would also facilitate an employee secondary share sale in partnership with Nasdaq at the same $4bn valuation.

Synthesia generated revenue of $58.3m in 2024 but recorded a pre-tax loss of $59.2m as it invested heavily in staff, technology and new offices.

The firm said it expected revenues to reach $200m, with annual recurring revenue already above $150m, reflecting rapid uptake among large corporate customers, particularly in the United States.

The funding came amid a broader surge in AI investment, with European startups raising record private capital in 2025, though valuations across the sector had prompted caution from some investors.

Synthesia's co-founder Steffen Tjerrild argued the latest valuation reflected execution and sustained growth rather than speculative excess.

Reporting by Josh White for Sharecast.com.