London-based Colossyan, which generates learning and development (L&D) training videos from a text prompt using generative AI, has raised a $5m Series A round.
What does Colossyan do?
Using Colossyan’s platform, users can use a text prompt or upload presentations, documents or audio to create an automated educational video, delivered by a realistic AI-generated host in their language and voice of choice. There are two plans available — a basic plan for simple videos and an enterprise range for professional videos — and prices are tiered depending on the number of minutes users can generate.
Its main competitor is London-based Synthesia, one of the sector’s best funded generative AI startups, which raised $50m in December 2021. The two companies essentially offer the same service, but Colossyan says it has already won over big-name clients like Procter & Gamble and Hewlett-Packard despite being less established.
Who invested in the round, and what’s next?
The round was led by CEE-based LAUNCHub Ventures and Emerge Education, a European VC specialising in L&D startups.
The cash will be used to grow the company’s engineering and AI research teams, plus expand its services further across London and New York.
Learning and development is a big topic on business leaders’ minds as they seek to retain talent in a competitive market. But it can be hard to deliver learning materials to teams — especially when they’re remote or located all around the world. Using AI to create videos — and cut the costs of personalising videos — will certainly sound attractive to many HR leaders.
While it’s great to see European generative AI startups raising more, let’s not forget Europe is lagging behind when it comes to AI innovation globally: last year, the continent raised $15bn to the US’s $33bn, according to Dealroom, and so far this year the US is streaking ahead with $13bn drummed up already, while Europe has scraped together just $1bn. The UK boasts the highest number of startups building with generative AI with 55 working in the space, diving down to 17 at second-place Germany.