TLDR
- Synthesia secured $200 million in Series E funding at a $4 billion valuation, doubling its worth from one year ago.
- Google Ventures led the round with Nvidia’s NVentures, Accel, NEA, Hedosophia, and other investors participating.
- The AI startup creates video generation software for corporate training and communications with interactive avatars.
- Synthesia achieved $150 million in annual recurring revenue and projects crossing $200 million in 2026.
- Microsoft became a customer in late 2025, while contracts over $100,000 quadrupled in 12 months.
London-based AI startup Synthesia has closed a $200 million Series E funding round at a $4 billion valuation. The investment doubles the company’s $2.1 billion valuation from its previous funding round in January 2025.
Google Ventures led the latest round. Other investors include Nvidia’s NVentures, Accel, Kleiner Perkins, New Enterprise Associates, PSP Growth, Air Street Capital, Hedosophia, and Evantic.
Synthesia was founded in 2017 by AI researchers from Stanford and Cambridge universities. The company focuses on text-to-video generation technology for business applications.
The startup offers multiple product tiers. A free version provides 10 minutes of video creation per month. Paid options include monthly subscriptions and custom enterprise packages with expanded features.
Interactive AI Agents for Corporate Training
Synthesia plans to deploy the new capital toward developing interactive AI agents. These digital avatars will appear in training videos and respond to employee questions in real time.
The technology allows workers to practice scenarios through role-play sessions. Users receive personalized explanations instead of watching passive training content.
Co-founder and CEO Victor Riparbelli said the funding supports the company’s vision. He pointed to convergence between advancing AI agent technology and increased corporate demand for employee training solutions.
Revenue Growth and Major Clients
Chief Financial Officer Daniel Kim confirmed Synthesia has reached $150 million in annual recurring revenue. The company forecasts surpassing $200 million during 2026.
Microsoft signed on as a customer in late 2025. Synthesia quadrupled its number of contracts worth more than $100,000 over the past year.
The funding round includes an employee secondary share sale. Synthesia partnered with NASDAQ to facilitate the transaction at the $4 billion valuation.
European AI Investment Landscape
European AI startups raised $21.4 billion in private funding during 2025, according to Dealroom. American AI companies collected $162.7 billion the same year, though OpenAI, Anthropic, and xAI accounted for roughly $70 billion of that total.
Investment momentum continued into 2026. OpenAI entered discussions for a potential $50 billion funding round with Middle Eastern sovereign wealth funds. Anthropic signed a term sheet for $10 billion, while xAI raised $20 billion.
UK Chancellor Rachel Reeves praised Synthesia as a success story creating jobs domestically. London Mayor Sadiq Khan and former Tech Minister Peter Kyle attended the company’s office opening in July.
Synthesia serves enterprise clients who use its platform for internal training programs and external communications. The company has become one of the most discussed AI startups in the UK tech sector.
The new funding positions Synthesia to expand its agentic video capabilities. These features enable real-time interaction within AI-generated videos rather than static playback.
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