In today’s video-centric world, audiences consume vast quantities of video content. Businesses understand the power of video for engagement, but traditional video production methods are often slow, expensive, and complex. HeyGen, an AI video generation platform, aims to address these challenges and make video creation accessible to all businesses.
HeyGen has now raised $60M in Series A funding, led by Benchmark, with Victor Lazarte joining the board. Returning investors include Thrive Capital, BOND, Conviction, Dylan Field, Elad Gil, Aviv Nevo, Neil Mehta, and SV Angel among others.
In a relative note, back in February, we also reported about how UK-based Colossyan which used GenAI video for corporate training raised $22M to fuel growth.
What problem is the startup solving
Creating high-quality videos through traditional methods can be a time-consuming and costly process. Scripting, casting, location scouting, production, post-production, localization, and potential reshoots can take weeks or even months. The average cost per finished minute of video can reach $1,000, with high-production value projects exceeding that significantly. Scaling video production with traditional methods becomes a major hurdle for businesses.
HeyGen offers a solution through its AI video generation platform. Businesses can create, localise, and personalise studio-quality videos within minutes, eliminating the need for cameras, crews, or actors. Users simply input their script and generate videos for various purposes, including marketing, communications, sales, and employee training.
A key feature of HeyGen is its ability to localise existing videos into 175 languages and regional dialects using AI voiceover and lip syncing. Unlike traditional dubbing methods, HeyGen preserves the speaker’s natural voice and delivers it with natural lip movement in the target language. This ensures an engaging and authentic experience for viewers.
HeyGen’s mission and growth trajectory
HeyGen’s mission is to empower businesses of all sizes to leverage the power of visual storytelling. Whether you’re a small business, a global non-profit, or a Fortune 500 company, HeyGen can help you share your story effectively.
The company has experienced remarkable growth, increasing its annual recurring revenue (ARR) from $1 million to over $35 million in just over a year. This achievement, coupled with profitability since Q2 2023, has led to a Series A funding round of $60 million led by Benchmark. The funding values the company at over $500 million and underscores the dedication of HeyGen’s team across locations in Los Angeles, San Francisco, Palo Alto, and Toronto.
The company has also bolstered its leadership team with three key appointments. Dave King, former CMO of Asana, joins as Chief Business Officer. Rong Yan, previously VP of Engineering at HubSpot, takes on the role of Chief Technology Officer. Lavanya Poreddy, with experience at Match Group and Meta, becomes the Head of Trust and Safety, ensuring ethical and responsible use of HeyGen’s technology.
The impact of HeyGen’s platform is evident in its diverse customer base exceeding 40,000 paying businesses globally. These customers range from European manufacturers and small businesses to global non-profits and Fortune 500 companies, highlighting the broad applicability of the solution. Some notable examples include: McDonald’s sweet connections ad campaign, Salesforce’s partner kickoff event among others.
What do we think about the startup
With the new funding, HeyGen plans to accelerate its product development roadmap. Upcoming features include advancements in Avatar Video, Video Translation, Personalized Video, Streaming Avatar capabilities, and other surprises. The company remains committed to pioneering innovative ways for organisations to tell their stories through the power of visual storytelling.
Looking ahead, HeyGen is positioned to play a significant role in democratising video creation and empowering businesses to leverage the power of AI-powered video content. However, the competitive landscape for video creation tools is evolving, and HeyGen will need to stay ahead of the curve by continuously innovating and adding value to its platform.
