Which synthetic data startups raised capital?

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The synthetic data startup ecosystem experienced significant funding activity throughout 2024 and into 2025, with 42 companies collectively raising $763.1 million across various stages and applications.

European companies like MOSTLY AI and Sky Engine AI secured major rounds while strategic acquisitions like SAS's purchase of Hazy signaled market maturation. And if you need to understand this market in 30 minutes with the latest information, you can download our quick market pitch.

Which specific synthetic data startups secured funding rounds in 2024 and early 2025?

Sky Engine AI led 2024 funding activity with a $7 million Series A round from Cogito Capital Partners, Edge VC, and Taiwania Capital for their computer vision synthetic data platform.

MOSTLY AI continued building on their previous $25 million Series B, maintaining their position as Europe's most well-funded synthetic data startup with over $31 million in total funding. The Austrian company specializes in structured synthetic data for financial institutions and has secured contracts with multiple Fortune 100 banks.

Aindo raised €6 million in Series A funding led by United Ventures, with participation from existing investor Vertis SGR. This Italian company focuses on generative AI solutions for healthcare, finance, and public administration sectors, addressing critical privacy concerns in regulated industries.

Advex AI secured $3.5 million in seed funding to launch their GenAI synthetic data platform specifically for manufacturing applications. Their platform addresses the unique data challenges in industrial computer vision and quality control systems.

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What's the total capital deployed in synthetic data across all startups?

The synthetic data startup ecosystem has collectively raised $763.1 million across 42 companies, representing an average of $18.2 million per startup.

This funding distribution indicates a relatively mature market with several well-capitalized players alongside emerging early-stage companies. The range spans from seed-stage companies raising under $5 million to established players like Datagen with $50 million Series B rounds.

European companies command a significant portion of this total funding, with MOSTLY AI, Hazy, and Sky Engine AI representing three of the largest funding rounds in the region. The geographic distribution shows synthetic data funding is not concentrated in traditional Silicon Valley tech hubs but spread across privacy-conscious European markets.

The $763.1 million figure excludes strategic acquisitions like SAS's purchase of Hazy, where acquisition prices were not disclosed. Including undisclosed acquisition values would likely push the total market value significantly higher.

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Which synthetic data startup secured the largest funding round and what did they achieve?

Datagen holds the record for the largest synthetic data funding round with their $50 million Series B led by Scale Venture Partners in 2022.

The company initially focused on computer vision applications for autonomous vehicles and robotics, generating photorealistic synthetic images and videos for training machine learning models. Their technology addressed the expensive and time-consuming process of collecting real-world training data for computer vision systems.

However, Datagen underwent a strategic pivot in 2024 to adapt to the generative AI landscape, repositioning themselves to compete with general-purpose image generation models like Midjourney and DALL-E. This pivot illustrates how established synthetic data companies must continuously evolve as generative AI capabilities advance rapidly.

Despite the strategic shift, Datagen's $50 million round remains the benchmark for synthetic data startup valuations and demonstrates investor confidence in computer vision applications. The Scale Venture Partners investment reflected belief in synthetic data's potential to transform how AI models are trained across multiple industries.

Who are the most active investors in synthetic data startups and which companies have they backed?

Scale Venture Partners leads synthetic data investment activity, having led Datagen's $50 million Series B round and actively seeking additional opportunities in the space.

Cogito Capital Partners demonstrates consistent synthetic data focus, leading Sky Engine AI's $7 million Series A round alongside Edge VC and Taiwania Capital. Their portfolio strategy targets European synthetic data companies with strong technical capabilities and clear market applications.

Molten Ventures spearheaded MOSTLY AI's Series B funding, while Conviction led Hazy's funding rounds before the SAS acquisition. United Ventures shows sector specialization by leading Aindo's Series A round, focusing on healthcare and financial services applications.

Microsoft's M12 fund represents strategic corporate investment in the space, participating in Hazy's funding round alongside their potential customer relationship. This dual investor-customer dynamic creates unique validation opportunities for synthetic data startups.

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Which synthetic data startups received backing from major tech giants or prominent VC firms?

Microsoft's M12 fund participated in Hazy's funding round, providing both capital and strategic validation for enterprise synthetic data applications in regulated industries.

Major financial institutions including Wells Fargo and Nationwide Building Society have taken dual roles as both investors and customers in synthetic data companies. This creates a unique dynamic where strategic partners directly validate technology value through their own deployments while providing capital.

Scale Venture Partners, known for backing enterprise software leaders, led Datagen's $50 million round, bringing their expertise in scaling B2B technology companies to the synthetic data space. Their involvement signals confidence in synthetic data's potential for enterprise adoption.

Taiwania Capital's participation in Sky Engine AI's round represents international institutional investment in European synthetic data innovation. Their involvement indicates growing global recognition of synthetic data's strategic importance beyond traditional venture capital circles.

What core technologies do the most heavily funded synthetic data startups actually build?

MOSTLY AI specializes in structured synthetic data generation, creating tabular datasets that maintain statistical properties while ensuring privacy compliance for financial services and healthcare applications.

Datagen focuses on computer vision synthetic data, generating photorealistic images and videos for training autonomous systems, robotics, and augmented reality applications. Their technology creates diverse training scenarios without real-world data collection costs or privacy concerns.

Sky Engine AI builds cloud-based synthetic data platforms specifically for computer vision applications, enabling enterprises to generate custom training datasets for their specific use cases without requiring deep technical expertise.

Hazy developed enterprise-focused synthetic data generation tools for structured data, with particular strength in financial services applications including fraud detection, risk modeling, and regulatory compliance use cases.

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Which technological breakthroughs are attracting the most investment in synthetic data?

Structured data generation for regulated industries attracts the highest investment levels, with companies like MOSTLY AI and Hazy securing major rounds by addressing financial services' privacy and compliance challenges.

Computer vision synthetic data represents another heavily funded category, as autonomous vehicles, robotics, and manufacturing applications require massive training datasets that are expensive and time-consuming to collect through traditional methods.

Healthcare synthetic data generation draws significant investor interest due to strict patient privacy regulations and data scarcity challenges. Companies like Synthea and Syntegra create synthetic patient records and medical images that enable research without exposing sensitive information.

Generative AI integration represents an emerging investment theme, as companies must differentiate their specialized capabilities from general-purpose models like GPT and DALL-E. This convergence creates both opportunities and competitive challenges for synthetic data startups.

What are typical investment amounts and valuation ranges for synthetic data startups currently?

Seed rounds in synthetic data typically range from $2-5 million, with companies like Advex AI raising $3.5 million to develop specialized manufacturing applications.

Are there geographic clusters where synthetic data funding concentrates?

Europe leads synthetic data innovation with Austria, UK, Italy, and Poland hosting major funded companies, driven by GDPR compliance requirements and privacy-conscious regulatory environments.

Austria dominates through MOSTLY AI's success, while the UK produced multiple notable companies including Hazy before its acquisition by SAS. Germany and France also host significant synthetic data startups, creating a continental ecosystem of privacy-preserving technology innovation.

The United States maintains strong presence through companies like Gretel.ai, Tonic.ai, and Synthesis AI, with each focusing on specific verticals or data types. However, unlike other AI categories where the US dominates with 76% of global investment, synthetic data shows more geographic diversity.

Eastern European countries are emerging as synthetic data development centers, with Sky Engine AI's Polish origins demonstrating how regional expertise in computer vision and data science translates into fundable startup opportunities.

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Which synthetic data startups are early-stage versus scaling based on their funding rounds?

Early-stage companies include Advex AI with $3.5 million seed funding for manufacturing applications and various unnamed startups in the 42-company ecosystem still raising initial rounds.

Series A companies represent the scaling phase, including Sky Engine AI ($7 million), Aindo (€6 million), and Hazy ($9 million before acquisition). These companies have proven market fit and are expanding teams and customer bases.

Scaling companies include MOSTLY AI with $25 million Series B funding and established enterprise customers across Fortune 100 banks. Datagen's $50 million Series B also positioned them as a scaling player, though their 2024 strategic pivot indicates ongoing market adaptation challenges.

The acquisition of Hazy by SAS represents the mature end of the spectrum, where synthetic data capabilities become integrated into larger enterprise software platforms rather than remaining standalone products.

What 2024-2025 signals predict where synthetic data funding heads in 2026?

Strategic acquisitions like SAS purchasing Hazy signal market maturation and integration into mainstream enterprise software platforms rather than standalone synthetic data products.

The convergence with generative AI creates both opportunities and challenges, as evidenced by Datagen's strategic pivot to compete with general-purpose image generation models. Future funding will likely favor companies that can differentiate specialized capabilities from commodity generative AI.

Geographic expansion beyond traditional tech hubs continues, with European companies leading innovation due to privacy regulation advantages. This trend suggests 2026 funding will increasingly flow to regions with supportive regulatory frameworks.

Enterprise adoption acceleration indicates synthetic data is moving from experimental to production use cases, particularly in regulated industries like financial services and healthcare where privacy concerns are paramount.

Which synthetic data companies have strategic partnerships positioning them for market leadership?

MOSTLY AI maintains strategic relationships with multiple Fortune 100 banks and major financial institutions, providing both revenue stability and market validation for their structured synthetic data solutions.

Microsoft's M12 investment in Hazy before the SAS acquisition demonstrated how strategic corporate partnerships can provide both capital and customer validation. The Microsoft relationship likely influenced SAS's acquisition decision.

Wells Fargo and Nationwide Building Society represent the dual investor-customer dynamic in synthetic data, where financial institutions both fund and deploy these technologies for their own operations.

Sky Engine AI's partnerships with Edge VC and Taiwania Capital provide international market access and validation, positioning them for expansion beyond their initial European base into Asian and global markets.

Conclusion

Sources

1. Seedtable - Best Synthetic Data Startups
2. Mintz - State of Funding Market AI Companies 2024-2025
3. The Recursive - Polish Sky Engine AI Raises $7M Series A
4. MOSTLY AI - $25M Series B Announcement
5. Inside AI News - MOSTLY AI Launches $100K Prize
6. EU Startups - Aindo €6 Million Series A
7. SiliconANGLE - SAS Buys Hazy
8. Latka - Hazy Company Profile
9. StartupHub - Datagen Pivoting Strategy
10. FinTech News - Global AI Funding Analysis
11. TechCrunch - Datagen $50M Series B
12. Fraser Finance - Hazy $9M Funding
13. AI Superior - Synthetic Data Generation Guide
14. Business Wire - Advex AI $3.5M Seed
15. TechCrunch - Synthesis AI $17M Series A