Avataros Raises $7M Seed Round - AI Virtual Influencers

The Resurgence of Avatars Fueled by Generative AI

Interest in digital avatars experienced a surge a few years ago with the initial excitement surrounding the metaverse. Although that initial fervor has subsided, advancements in generative AI are revitalizing the field, simplifying the creation of diverse virtual identities.

Various companies are exploring different applications for avatars. These include D-ID and Synthesia within the corporate sector, Zoom for virtual meetings, Glance for fashion applications, Praktika for educational purposes, and TikTok and Captions geared towards content creators.

Addressing a Gap in Avatar Quality

Isaac Bratzel, the creator of well-known virtual influencers like Lil Miquela and Amelia 2.0, identifies a current deficiency: a lack of truly high-quality avatars. He believes these avatars should not only possess appealing aesthetics but also exhibit distinct, personalized characteristics.

This observation motivated Bratzel to establish AvatarOS.

Prior to founding AvatarOS, Bratzel held design positions at IPsoft, where Amelia 2.0 was developed, at Brud, the company behind Lil Miquela, and subsequently at Dapper Labs following their acquisition of Brud. He initiated AvatarOS after departing from Dapper Labs in 2022.

Securing Seed Funding

The company recently announced the completion of a $7 million seed funding round. This round was led by M13’s Latif Peracha, with additional participation from Andreessen Horowitz Games Fund, HF0, Valia Ventures, and Mento VC.

AvatarOS is currently in an exploratory phase, focused on identifying the optimal product-market fit. Bratzel emphasizes the importance of understanding that customer needs don’t always align with a company’s technological capabilities or what is considered innovative.

M13’s Perspective on the Investment

Latif Peracha of M13 characterized this funding round as exploratory, highlighting the opportunity to support a founder with a proven history in the avatar space.

“Through this exploration, we aim to determine the most viable business model and gain a clearer understanding of the path forward. Isaac’s experience at both IPsoft and Brud clearly positions him as the ideal leader for this venture,” Peracha stated.

Notably, Peracha conducted part of his due diligence by interacting with an avatar of Bratzel himself, to gain deeper insight into the founder’s vision.

Focus on High-End, 3D Avatars

Bratzel clarified that AvatarOS is concentrating on the creation of sophisticated, high-end avatars in 3D environments, rather than focusing on readily available, click-to-generate content.

“The ease of content creation can lead to saturation, similar to the issue of spam emails. We aim to differentiate ourselves by avoiding this overabundance of content within the avatar space,” Bratzel explained during a conversation with TechCrunch.

“While several existing products offer avatar generation technology, our focus remains squarely on the avatar itself. Lil Miquela, for example, represents a lasting entity that has accumulated value over time, extending beyond any single project,” he added.

Current Activities and Future Plans

The company is presently onboarding beta users, granting them access to a selection of existing avatars. A streamlined API is also being released, enabling clients to integrate these avatars into their websites.

These avatars can be powered by large language models (LLMs) to deliver information and allow for adjustments to camera angles and viewpoints.

Currently, AvatarOS directly creates customized, premium avatars for its clients. However, the long-term vision involves providing clients with more comprehensive tools for avatar creation and modification.

Bratzel believes the company’s primary differentiator will be the realism of avatar movement.

“Human movement is inherently unique. Many avatar solutions can create a visual likeness, but often the movement appears generic. We are dedicated to replicating the nuances of human motion,” he said.

Utilizing Funding for Growth and Innovation

The secured funding will be allocated towards expanding the team and developing a machine learning-based deformer. This deformer will be instrumental in generating lifelike movements for the avatars.