Synthesia hits $4B valuation as employee cash-out signals booming AI video market

DCM Editorial Summary: This story has been independently rewritten and summarised for DCM readers to highlight key developments relevant to the region. Original reporting by Tech Crunch, click this post to read the original article.

British startup Synthesia, which helps companies create AI-powered training videos, has raised $200 million in a Series E funding round, bringing its valuation to $4 billion—nearly double last year’s $2.1 billion. What sets Synthesia apart from many other AI companies is its successful business model centered around corporate training, powered by AI-generated avatars. With big-name clients like Bosch, Merck, and SAP, the company surpassed $100 million in annual recurring revenue as of April 2025.

The new funding round was led by existing backer GV (Google Ventures), along with support from firms like Kleiner Perkins, Accel, New Enterprise Associates, NVentures, Air Street Capital, and PSP Growth. New investors, including Evantic and Hedosophia, also joined the table. As part of this round, Synthesia is launching a structured secondary sale of employee shares with Nasdaq acting as a private market facilitator. This means early employees can convert their shares into cash at the same $4 billion valuation, without the company going public.

If you’re part of Synthesia’s team, this sale is designed to reward your contribution to the company’s growth. CFO Daniel Kim emphasized that the move provides meaningful liquidity opportunities while keeping Synthesia focused on long-term goals. Rather than selling shares in a scattered or uncertain way, the company is keeping the process centralized and fair.

Looking ahead, Synthesia plans to expand beyond video creation into AI agents that allow users to interact with and explore company knowledge in a more human-like and intuitive way. Early feedback from pilot customers has been positive, with improved engagement and knowledge retention. CEO Victor Riparbelli sees a unique opportunity as AI capabilities grow alongside rising corporate demand for upskilling and knowledge sharing.

Founded in 2017, Synthesia now employs more than 500 people and maintains its 20,000-square-foot headquarters in London, alongside offices in Amsterdam, Copenhagen, Munich, New York, and Zurich. According to its head of corporate affairs, the employee secondary sale may set a precedent for other UK startups to unlock new options for employee liquidity without going public.