Do I blink too much? Why is my hair perpetually askance? And is it just me, or is my head kind of small? My avatar’s AI-generated, but I’m asking the same questions I ask looking in any mirror, whether it’s the one in my hallway or the digital mirror that’s an iPhone camera. 

In some sense, that’s what Synthesia’s avatars are—mirrors, digital reflections of real humans. Synthesia, an AI video startup based in London, has over the last year seen more than 150,000 users make avatars like mine, for use by large enterprises looking to make training or marketing videos in multiple languages. And while they’re not perfect, they are persuasive. 

Yes, I have my petty criticisms—but they’re more about self-perception than accuracy. It’s similar to how I sometimes feel on Zoom, watching a slightly disembodied version of myself on screen. My avatar is not me, but then again neither is the version of me that shows up on Zoom, in videos, or real-life mirrors. 

Now, do I think my avatar could fool my mom? Probably not—at least, not yet. There is strangeness, but it’s entirely at the margins. My face looks very accurate, save for the fact I know I jostle my cheeks and widen my eyes a lot more than my avatar. When I was writing a feature about Synthesia for Fortune’s just-released digital issue, I asked Synthesia CEO and cofounder Victor Riparbelli: What makes an avatar seem more human?

“It’s all in the microexpressions,” said Riparbelli. “What makes them look really real is all the microexpressions: How you say something, the intonations of the voice, especially when there’s a lot of text to speak.” 

He continued: “For many years, we had this problem of: If you listen to it for one sentence, it sounds very real.” To make an avatar seem human, you need the way they speak to vary, to replicate what an actual person does. For example, “When I talk, I speed up, slow down, and emphasize certain words,” Riparbelli added. “All those things are very natural. For me, I use my hands a lot when I talk—it’s unconscious, that’s how I’m wired—and if my avatar doesn’t use its hands in the same way, it looks weird. All those small details have to fit together for it to look and sound real.”

The subtext of all this is the uncanny valley, a term originated in 1970 by roboticist Masahiro Mori that describes the sensation we get looking at an entity that looks almost—but not quite—like a human. Riparbelli thinks that, when it comes to video, we’re about to exit the uncanny valley for good.

“I think we’ll break through the uncanny valley before the end of the year,” he said. “Just like we broke through it with images, just like we broke it with text. We’ve also done it, at least in some parts, with voice and video. It’s getting very, very, very close.”

Synthesia has attracted more than $330 million in funding from VCs like Kleiner Perkins, GV, Accel, and NEA. And its customer base includes many of the world’s largest companies, from Mondelēz International to SAP. Read the whole article here.

See you Monday,

Allie Garfinkle
X: @agarfinks
Email: alexandra.garfinkle@fortune.com
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Venture Deals

- Bonfy.AI, a Mountain View, Calif.-based adaptive content security solutions provider, raised $9.5 million in seed funding. TLV Partners led the round and was joined by Saban Capital Partners.

- PoliCloud, a Cannes, France-based cloud infrastructure developer for cities, enterprises, and public institutions, raised €7.5 million ($8.8 million) in seed funding. Global Ventures led the round and was joined by MI8 Limited, OneRagtime, Inria, and others.

- Klutch AI, a Seattle-based agentic AI construction workflow automation company raised $8 million in seed funding. Bain Capital Ventures and Bling Capital led the round and were joined by Brick & Mortar Ventures, Original Capital, Anthology Fund, and angel investors.

- Serve First, a Milton Keynes, England-based AI-powered customer experience and feedback platform, raised £4.6 million ($6.3 million) in funding from Pembroke VCT, Mercia Ventures, Tiny VCT, Techstars, and angel investors.

- VO/D, a Miami-based venture studio, raised $5 million in Series A funding. Karp Reilly led the round and was joined by Saquon Barkley, Yosef Martin, AJ Patel, and others.

- CalmWave, a Seattle-based alarm fatigue solution provider for ICUs, raised $4.4 million in seed+ funding from existing investors Third Prime, Bonfire Ventures, Catalyst by Wellstar, and Silver Circle.

- NexusMD, a Melbourne-based agentic AI health care solutions provider, raised $6.3 million AUD ($4.1 million) in seed funding from Square Peg.

- Nascent Materials, a Newark-based battery materials company, raised $2.3 million in seed funding. SOSV led the round and was joined by New Jersey Innovation Evergreen Fund and UM6P Ventures.

- Castle, a Miami-based bitcoin treasury solutions provider for small and medium-sized businesses, raised $1 million in pre-seed funding from Boost VC and Winklevoss Capital.

Private Equity

- Battery Ventures agreed to acquire Enzo Biochem, a Farmingdale, N.Y.-based life sciences company, for $0.70 per share in cash, totaling approximately $37 million.

- CMIT Solutions, backed by HKW, acquired Wright Technology Group, a Taunton, Mass.-based cybersecurity and managed IT services provider. Financial terms were not disclosed.

- Forterro, backed by Partners Group, acquired TARGIT, a Denmark-based business intelligence solutions provider. Financial terms were not disclosed.

- Prospect Partners acquired a majority stake in and merged Aire Serv, Mr. Electric, Glass Doctor, and Molly Maid, brands of Neighborly, a Waco, Texas-based franchisor, to form Complete Home Services. Financial terms were not disclosed.

- Swanson Industries, a portfolio company of Turnspire Capital Partners, acquired the off-highway business of TransAxle, a Cinnaminson, N.J.-based drivetrain components remanufacturer. Financial terms were not disclosed.

Exits

- Wolters Kluwer Legal & Regulatory acquired Brightflag, a New York City-based AI-powered legal spend management software provider, for approximately €425 million in cash. Brightflag previously raised approximately $38.8 million in venture funding from investors including Sands Capital, Frontline Ventures, and Tribal Ventures.

IPOs

- Jefferson Capital, a Minneapolis-based consumer debt purchaser, raised $150 million in an offering of 10 million shares (94% secondary) priced at $15 on the Nasdaq. The company posted $488 million in revenue for the year ending March 31, 2025. J.C. Flowers backs the company.

- Carlsmed, a Carlsbad, Calif.-based spine surgery technology company, filed to go public on the Nasdaq. The company posted $32 million in sales for the year ending March 31, 2025. B Capital Group, U.S. Venture Partners, and Michael Cordonnier back the company.

Funds + Funds of Funds

- Galaxy Ventures, the New York City-based venture strategy of Galaxy Digital, raised $175 million for its first fund focused on early-stage companies developing onchain economy infrastructure.

People

- Sapphire Partners, an Austin-based limited partner, promoted Dan Clayton to principal.

- Sapphire Ventures, an Austin-based venture capital firm, promoted Andrew Vogeley, Adam Liu, Aditya Reddy, and Justin Liu to vice president and Michael Hsu to senior associate.