Synthesia has reached $100 million in annual recurring revenue (ARR) and secured new investment from Adobe, setting the stage for a major expansion into the AI agent market later this year.
The UK-based startup, known for using generative AI to create lifelike avatars for marketing and communication videos, made the announcement just three months after raising $180 million in a Series D round. According to founder and CEO Victor Riparbelli, Synthesia’s next big product — an AI agent tool that makes videos interactive — will launch in the first half of this year.
AI agents have sparked massive investor interest in recent months, with European startups in the field raising €1 billion already in 2025, outpacing the €1.7 billion total raised last year, according to Sifted data.
Details on Adobe’s investment size and Synthesia’s updated valuation were not disclosed. However, the startup’s last funding round, led by US venture firm NEA and including Google Ventures and MMC Ventures, valued it at $2.1 billion.
Synthesia Push Into AI Agents
Founded in 2017, Synthesia has long focused on enterprise-level generative AI video tools — even before the AI boom sparked by ChatGPT. The company now claims 65,000 customers, including over 70% of the Fortune 100.
Synthesia builds its own video generation models but also taps into models from major players like Google DeepMind’s Veo, a strategy becoming more common among startups. Other companies using a similar approach include ElevenLabs (voice AI) and Cursor (AI dev tools).
The company generates about 50% of its revenue from the US, with the rest coming from Europe and Asia. Riparbelli says Synthesia has “captured” the enterprise AI avatar category and is now expanding into more interactive tools.
The upcoming AI agent will allow users to engage with videos in real time — for example, asking questions during a sales pitch or taking a quiz during employee onboarding.
“The future of communication won’t be static videos,” Riparbelli says. “It will involve interactivity and engagement.”
He believes the new product could help double Synthesia’s ARR within the next year.
Economic Uncertainty Ahead
Synthesia’s growth plans come as the global economy faces fresh uncertainty, particularly due to recent tariffs introduced by US President Donald Trump. These tariffs have rattled stock markets and caused concern among European tech firms.
Riparbelli acknowledges that the economic climate could influence customer budgets. “A lot will depend on how the next month or two unfolds — both in terms of Trump’s actual policy actions and how markets respond,” he explains.
