Adobe Invests in Synthesia: Boosting AI Video Avatar Innovation After Figma Deal Collapse

April 15, 2025
Adobe Invests in Synthesia: Boosting AI Video Avatar Innovation After Figma Deal Collapse
  • This investment comes after Adobe's recent challenges, including the collapse of a $20 billion acquisition deal for Figma, prompting the company to explore new growth avenues.

  • In January 2025, Synthesia raised $180 million in a Series D funding round, doubling its valuation to $2.1 billion and bringing its total capital raised to over $330 million.

  • Adobe has made a strategic investment in Synthesia, a UK-based startup specializing in AI-generated video avatars, following the company's impressive achievement of over $100 million in annual recurring revenue.

  • The company's growth is attributed to increased usage from existing clients, an expanded customer base, and enhancements to their platform with new AI-powered features.

  • Recently, Synthesia partnered with Shutterstock to enhance its AI models with a broader library of video footage, aiming to improve the realism of its avatars.

  • Adobe plans to leverage Synthesia's technology to enhance user experience and expand its offerings in the rapidly growing field of AI-driven content creation.

  • Synthesia's platform is now utilized by over 70% of Fortune 100 companies, showcasing its widespread adoption for corporate training, communications, and marketing.

  • Despite generating significant revenue, Synthesia reported a pre-tax loss of £25.2 million on revenues of £25.7 million in 2023, indicating that profitability is not currently prioritized.

  • Founded in 2017, Synthesia allows users to create videos from text prompts using AI-generated avatars and voices, simplifying the video creation process.

  • CEO Victor Riparbelli emphasized that this partnership validates Synthesia's vision of democratizing content creation and improving enterprise communication efficiency.

  • Synthesia has become a significant player in the UK's AI industry, specializing in AI-powered corporate videos.

  • The investment from Adobe Ventures, which joins other notable investors like NEA and Atlassian Ventures, highlights a growing interest in enterprise AI video tools.

Summary based on 6 sources


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Sources

Adobe Invests in AI Clone Startup Synthesia


Adobe Invests in British AI Firm Synthesia

MarketScreener • Apr 15, 2025

Adobe Invests in British AI Firm Synthesia


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