Benchmark to Lead Investment in AI Video Startup HeyGen at $440 Million Valuation

HeyGen, a three-year-old startup that uses artificial intelligence to generate avatars and voices for videos, is raising $60 million at a pre-investment valuation of $440 million, six times higher than the startup’s valuation four months ago, according to a person with direct knowledge of the round. Benchmark, the early-stage venture capital firm that bet early on Snap and Uber, is leading the round, which has not yet closed, the person said.

The startup’s ties to China have put it at odds with U.S. officials, who are increasingly concerned with Chinese investment in American technology. HeyGen, originally named Surreal, was founded in China during the coronavirus pandemic but is now headquartered in Los Angeles. Its early funding came from Chinese investors such as HongShan, previously known as Sequoia Capital China, and ZhenFund.