Synthesia scores Adobe investment as hits $100m ARR “milestone”

Synthesia scores Adobe investment as hits $100m ARR “milestone”

Hyped UK AI unicorn Synthesia has grabbed “strategic investment” from Adobe, as the eight-year-old startup says it has surpassed $100m in annual recurring revenue (ARR). Synthesia, founded in 2017, makes AI-powered corporate videos and has become something of a talismanic company in the UK’s burgeoning AI scene.

In January this year, it doubled its valuation to $2.1bn, following a $180m funding round. It has now secured investment, for an undisclosed amount, from Adobe’s venture capital arm, Adobe Ventures. Other investors in Synthesia include NEA, WiL, Atlassian Ventures, PSP Growth, GV, and MMC Ventures.

The London-headquartered fintech says hitting $100m in ARR- which measures recurring revenue of a business over a year – is an important “milestone”.

It said it reached the $100m figure by luring in new customers, getting existing customers to spend more, and leading the charge in AI innovation. In 2023, Synthesia reported revenues of £25.7m, on a pre-tax loss of £25.2m. Synthesia says 70 per cent of the Fortune 100 are now its customers.

Victor Riparbelli, CEO and co-founder of Synthesia, said: “Reaching $100 million in ARR underscores the significant value and impact our AI video platform and solutions bring to enterprises and the shared determination of our team to build a generational software business.

“The Adobe Ventures investment represents a powerful endorsement of our vision for enterprise-grade video communications, enabling us to deliver even greater innovation and customer value.”