Leading the investment round is Benchmark, known for early bets on Snap and Uber.
Despite not being closed yet, this funding round highlights HeyGen’s rapid growth and its navigation through geopolitical concerns due to its Chinese origins and investments.
Founded in China as Surreal during the pandemic and now based in Los Angeles, HeyGen faces scrutiny over its Chinese investment links, notably from HongShan and ZhenFund.
This scrutiny stems from fears of foreign influence on U.S. tech with national security implications. However, HeyGen, serving clients like Salesforce, Nvidia, and Amazon, emphasizes its commitment to ethical use, prohibiting its technology’s use for political purposes.
Amid these challenges, HeyGen has shown impressive financial growth, boasting over $20 million in annualized revenue, a significant jump from previous years. This revenue spike positions HeyGen distinctly among generative AI startups, many of which struggle financially despite substantial funding.
Benchmark’s Peter Fenton and Victor Lazarte spearhead the new funding, emphasizing the firm’s confidence in HeyGen’s technology and market strategy.
HeyGen, co-founded by former Snap engineer Joshua Xu and ex-ByteDance product designer Wayne Liang, aims to transform video content creation for businesses, standing out in a competitive landscape with its focus on commercial applications.
