UK-based startup Synthesia, which has developed an AI platform enabling businesses to create interactive training videos, has recently completed a substantial $200 million Series E funding round, catapulting its valuation to $4 billion—nearly doubling from the $2.1 billion mark set just a year prior. Unlike many AI startups still struggling to achieve profitability, Synthesia has carved out a highly lucrative niche in the digital transformation of corporate training through its AI-generated avatar technology. The London-headquartered company has secured a roster of major corporate clients including Bosch, Merck, and SAP, and achieved a milestone in April 2025 by surpassing $100 million in annual recurring revenue. This impressive performance explains why Synthesia's venture capital backers chose to reinvest significantly. The Series E round was led by existing investor GV (Google Ventures), with participation from several other long-standing shareholders, including Kleiner Perkins (the Series B lead), Accel (the Series C lead), New Enterprise Associates (the Series D lead), alongside NVIDIA's venture arm NVentures, Stripes, and the growth capital platform of the Canada Pension Plan Investment Board. This financing round propelled the company's valuation to nearly double its previous level. According to information obtained by TechCrunch, alongside the continued support from existing investors, this funding round will also welcome new investors and provide an avenue for partial exits for some. On one hand, Matt Miller's venture firm Evantic and the low-profile investment firm Headline will join the company's cap table as new shareholders. On the other hand, Synthesia is partnering with Nasdaq to launch a secondary share sale program for employees. It is important to clarify that Synthesia is not currently preparing for an IPO—Nasdaq is participating in this transaction not as a public stock exchange, but as a private market services provider, facilitating the liquidity event for the company's early employees. Such employee share transactions often occur in informal settings, with prices that can be above or below the official company valuation, sometimes causing discontent among other shareholders. In this Nasdaq-facilitated transaction, all share sales will be pegged to the $4 billion valuation from the Series E round, allowing the company to maintain a degree of control over the process. Synthesia's Chief Financial Officer, Daniel Kim, stated in an interview with TechCrunch, "The core purpose of this secondary transaction is to give back to our employees. It provides a valuable opportunity for liquidity, allowing them to share in the value they helped create, while the company can remain private and focused on long-term growth." For Synthesia, its long-term strategy extends beyond upgrading its expressive video products to also embrace the trend of AI agents. According to a company press release, it is developing AI agents that will eventually allow employees at client companies to interact with corporate knowledge bases in a more intuitive and human-like manner through "asking questions, scenario-based role-playing, and receiving customized explanations." The company revealed that early pilot programs for this agent have received positive feedback from customers, showing significantly improved employee engagement and accelerated knowledge transfer compared to traditional training methods. Encouraged by this response, Synthesia plans to prioritize agent technology as a core strategic focus, increasing R&D investment while continuing to enhance the functionality of its existing platform. Although the company has not disclosed specific revenue projections, it aims to leverage its platform to provide an ideal solution for businesses grappling with employee training challenges amid rapid operational changes. Synthesia's co-founder and CEO, Victor Riparbelli, said in a statement, "We are witnessing a rare convergence of two major trends: technologically, the capabilities of AI agents are rapidly advancing, and from a market perspective, employee upskilling and internal knowledge sharing have become board-level priorities." Perhaps no one but Riparbelli could have foreseen that advancements in AI would prompt corporate boards to place greater emphasis on employee development. It was he, along with co-founder and COO Steffen Tjerrild, who proactively championed this secondary share sale, enabling employees to share in the success of this unicorn. Founded in 2017, Synthesia now employs over 500 people, maintains a 20,000-square-foot headquarters in London, and has offices in Amsterdam, Copenhagen, Munich, New York, and Zurich. Alexandru Voica, Head of Corporate Affairs and Policy at Synthesia, told TechCrunch that while this structured secondary sale model is not common among UK startups, it is not the first instance and likely won't be the last. He predicted, "As privately-held UK companies choose to extend their periods of private ownership, these structured, cross-border employee liquidity models may become more prevalent. Therefore, I wouldn't be surprised if other companies partner with Nasdaq or other institutions to launch similar programs in the future."
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