Benchmark, led by partner Peter Fenton, is set to invest in the generative AI startup HeyGen, marking a significant move in the venture capital landscape. HeyGen, known for its innovative use of AI in creating avatars and voices for videos, is raising $60 million at a pre-investment valuation of $440 million. This development comes amidst discussions about the company's connections to China, which have raised concerns. The investment by Benchmark values HeyGen at a forward revenue multiple of approximately 22x, considered relatively modest in the burgeoning field of generative AI startups. Meanwhile, Redpoint's recent commentary highlights a challenging environment for Series A funding, despite a strong seed investment scene, and notes an AI premium being three times higher.
Peter Fenton's AI Bet: The Benchmark partner's investment in HeyGen, which uses AI to generate voice and avatars for videos, values the startup at $440 million. https://t.co/koez1qPb0M From @KateClarkTweets and @steph_palazzolo
Source: HeyGen, which uses AI to generate avatars and voices for videos, is raising $60M at a $440M pre-investment valuation, amid concerns about its China ties (The Information) https://t.co/6QehDOTnh2 📫 Subscribe: https://t.co/OyWeKSRpIM https://t.co/do8DafFDKl
Saturday scoop: Benchmark plans to invest in generative AI startup HeyGen at a $440 million pre-money valuation. Peter Fenton is leading the Series A deal. w/ @steph_palazzolo https://t.co/HxOqlwbHK1
News: Benchmark's @peterfenton is paying a valuation multiple of about 22x fwd revenue for @HeyGen_Official. That's pretty cheap as genAI startups go. https://t.co/J4VuA0XNwj by @steph_palazzolo @KateClarkTweets https://t.co/CSUXQoTTbc
New!! "Redpoint: Seed May Still Be Strong, But There’s No Bounce Back at Series A. And the AI Premium is 3x." https://t.co/XGF4s3Y6D4