Synthesia Secures $200M Funding, Doubles Valuation to $4 Billion
British AI company Synthesia has completed a Series E funding round of $200 million, achieving a company valuation of $4 billion. The valuation has nearly doubled within a year, following the London-based start-up’s valuation of $2.1 billion in the previous year. The funding round is led by Google Ventures, which had previously invested in the company.
Synthesia develops a platform that helps companies create interactive training videos with AI-generated avatars. Founded in 2017, the company has found a lucrative business model in transforming corporate training and counts corporations such as Bosch, Merck, SAP, Zoom, and Heineken among its customers. According to its own statements, the start-up works with over 90 percent of Fortune 100 companies. In April 2025, Synthesia surpassed the $100 million mark in annual recurring revenue.
Existing Investors Expand Stakes
In addition to Google Ventures, several previous investors are participating in the funding round, including Kleiner Perkins, Accel, New Enterprise Associates, Nvidia’s venture capital arm NVentures, Air Street Capital, and PSP Growth. New entrants to the capitalization table are investment firm Evantic Capital, founded by former Sequoia partner Matt Miller, and venture capital firm Hedosophia. The repeated participation of existing investors across multiple funding rounds signals their confidence in the company’s business development.
Parallel to the funding round, Synthesia is organizing a secondary transaction for employees in collaboration with Nasdaq. The exchange acts not as a public trading platform, but as an intermediary for private markets, enabling early team members to convert their shares into cash. All sales are processed at the same $4 billion valuation as the Series E round itself. Company management emphasizes that the program provides employees with access to liquidity and allows them to participate in the value created, while the company continues to operate as a private entity. Such structured, cross-border liquidity programs may become increasingly common for British start-ups as companies remain private longer.
Development of Interactive AI Agents in Focus
The company plans to use the funds from the financing round to develop conversational AI agents. These are intended to enable employees of customer companies to interact with corporate knowledge in a more intuitive, human-like manner by asking questions, exploring scenarios through role-playing, and receiving customized explanations. The features are scheduled to be introduced in the summer. Early pilot projects with customers have yielded positive feedback according to the company, with users reporting higher engagement and faster knowledge transfer compared to traditional formats. The transformation of videos from a one-way viewing experience to interactive learning tools is intended to support companies in skills development, assessment, and performance and productivity improvement.
Management sees a convergence of two significant developments: technological advances in AI agents and a market shift in which further education and internal knowledge sharing have become strategic priorities at board level. As a European company in global competition, Synthesia aims to be well capitalized to invest worldwide and build commercial presences. The company now employs around 600 employees, representing 40 percent growth in the past year. In addition to its 1,850 square meter headquarters in London, Synthesia maintains offices in Amsterdam, Copenhagen, Munich, New York, and Zurich. In the European AI sector, the company competes with start-ups such as ElevenLabs, which is reportedly in talks about financing at a valuation of $11 billion.
