AI-generated video specialist Arcads.ai raises $16 million in funding

French company Arcads.ai, set up two years ago and specialised in software solutions producing AI-generated promotional videos for social media, has raised $16 million in a funding round designed to bolster its expansion.

Arcads.ai founders Dylan Fournier and Romain Torres carried out the funding round with Eurazeo, alongside Alpha Intelligence Capital and via the Sequoia investment fund’s Scout programme.

Arcads.ai offers digital solutions enabling users to produce videos entirely generated by AI in 35 languages. The videos appear to have been made by influencers, but instead feature “AI actors.” Arcads.ai is positioned within the fast-growing user-generated content sector, featuring myriad influencers creating videos that promote consumer brands, which in turn play an active role in disseminating such third-party-generated content.

The company’s solutions allow brands and content creators to produce videos (for example product tests, fittings and unboxing) much more quickly, skipping the shooting and editing phases and aligning the content with themes trending on social media, especially TikTok and Instagram.

Arcads.ai has seven employees, and claims to have over 6,000 client companies and to generate over 100,000 videos per month. Fournier has indicated on social media that Arcads.ai’s revenue has grown from zero to $13 million in 18 months, and it is set to reach the $100 million mark “in the coming months.”