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Mirelo Raises $41M to Tackle AI Video’s Silent Problem

▼ Summary

– Mirelo is a Berlin-based startup building AI that adds synchronized soundtracks and sound effects to AI-generated videos, which often lack audio.
– The company has raised $41 million in a seed round led by Index Ventures and Andreessen Horowitz to compete against larger rivals like Sony and ElevenLabs.
– Mirelo plans to significantly expand its team to support R&D and its product strategy, focusing on API revenue and developing its creator workspace, Mirelo Studio.
– The startup is addressing data concerns by training its models on licensed sound libraries and establishing revenue-sharing partnerships to respect artists’ rights.
– Mirelo currently targets amateur creators with a freemium model, seeing a strategic opportunity in sound effects where it can build a competitive moat more easily than in other AI fields.

The explosion of AI video creation has unlocked incredible visual potential, yet a critical component remains missing: sound. Mirelo, a Berlin-based startup, is tackling this silent problem by developing AI that automatically generates synchronized soundtracks and effects to match on-screen action. This focus on audio has captured significant investor interest, with the company securing a substantial $41 million seed round to advance its technology and compete in this nascent market.

Earlier this year, Mirelo launched Mirelo SFX v1.5, an AI model designed to analyze video content and add perfectly timed sound effects. This development attracted the attention of major venture capital firms anticipating a generative AI revolution, particularly in gaming. The funding round was led by Index Ventures and Andreessen Horowitz, providing the capital needed to accelerate growth. The investment comes at a crucial time, as larger players like Sony, Tencent, and ElevenLabs have begun releasing their own video-to-sound models.

To effectively compete, Mirelo plans a major expansion of its ten-person team. CEO and co-founder CJ Simon-Gabriel stated the company expects to “double if not triple” its headcount by the end of next year. These new hires will bolster research and development while supporting the company’s product and market strategy. Currently, Mirelo publishes its models on platforms like Fal.ai and Replicate, anticipating that API usage will drive near-term revenue. Simultaneously, the startup is investing in its own creator workspace, Mirelo Studio, with ambitions to build it into a fully-featured professional tool.

As the company scales, it is proactively addressing concerns about training data that have challenged other AI firms. According to Georgia Stevenson of Index Ventures, Mirelo’s models are built using public and purchased sound libraries, and the company is establishing revenue-sharing partnerships to ensure artists’ rights are respected. The startup employs a freemium model, with a recommended creator plan priced around €20 per month, primarily targeting amateur and prosumer creators looking to add life to their AI-generated videos.

Simon-Gabriel emphasizes that audio is not a mere add-on but a fundamental part of the creative experience. He references filmmaker George Lucas’s famous assertion that sound constitutes fifty percent of a movie, suggesting that figure might even be an understatement. “You can take exactly the same images, and the sound will shape a completely different ambience,” he explained. Both he and co-founder Florian Wenzel are AI researchers and musicians, and while AI music generation is on the roadmap, the immediate focus is on sound effects. Simon-Gabriel notes that less research exists in this specific AI field compared to others, presenting a unique opportunity. “It’s easier to build a real moat here, and then to capitalize on it,” he remarked.

This strategic focus appears to be paying off. While Simon-Gabriel declined to specify the new valuation, he confirmed it had increased “very significantly” from a previous pre-seed round. That earlier funding was led by Atlantic Labs, which also participated in this latest round, bringing Mirelo’s total capital raised to $44 million. The startup also benefits from backing by angel investors who lend technical credibility, including Mistral CEO Arthur Mensch and Hugging Face’s chief science officer Thomas Wolf.

The competitive landscape is evolving rapidly, with giants like Google’s Gemini now integrating audio generation into its video tools. For Simon-Gabriel, this trend only validates Mirelo’s core mission. He compares the current state of AI video to the historic transition from silent films to “talkies,” noting the profound difference sound makes. As the industry begins to recognize that AI-generated content should not remain mute, Mirelo is positioned with specialized technology and fresh capital to ensure its voice is heard.

(Source: TechCrunch)

Topics

ai video creation 95% ai audio generation 93% startup funding 90% sound effects 88% Generative AI 87% venture capital 85% market competition 82% team expansion 80% revenue model 78% product development 77%