Synthesized, a company that develops artificial intelligence tools to automate software testing, has secured $20 million in a Series A funding round. The investment was led by Redalpine Venture Partners and aims to address the growing need for reliable code validation as AI-powered development tools become more common.
The funding will support the company's expansion in North America and Europe, with plans to double its current team of 35 employees over the next year. Existing investor and customer Deutsche Bank also participated in the round.
Key Takeaways
- Synthesized raised $20 million in a Series A round led by Redalpine Venture Partners.
- The company uses AI to automate software quality assurance and testing.
- Funding will be used to double its workforce and expand operations in Europe and North America.
- The market for automated software testing is projected to reach $10.6 billion by 2033.
- The rise of AI-assisted coding is driving demand for more sophisticated testing solutions.
Addressing a Growing Market Need
The new capital injection comes as the software development industry increasingly relies on AI-driven tools. Practices like using AI to generate code from simple descriptions, sometimes called “vibe coding,” and the use of AI coding assistants are accelerating development cycles. However, this speed often introduces a greater risk of errors and security flaws.
Nicolai Baldin, the founder and CEO of Synthesized, explained that his company's technology is designed to uncover these hidden issues. “We are making sure we really identify those things which are going to break your app, at the data level, on the environment level, and help you expose those breakage points,” Baldin stated. He emphasized that this capability is critical and often missed by traditional testing methods.
Market Projections
According to a report from Market.us, spending on automated software evaluation tools is forecast to grow significantly. The market, valued at $1.9 billion in 2023, is expected to expand to $10.6 billion by 2033, highlighting the industry's shift toward automated quality assurance.
This trend underscores the market opportunity Synthesized is targeting. As more code is generated by AI, the need for automated, intelligent verification systems becomes essential for maintaining software quality and security.
Investor Confidence and Vision
The funding round saw participation from a mix of new and existing investors, including IQ Capital, Mercia Ventures, UBS, and Seedcamp. Deutsche Bank, which uses Synthesized's platform, also reinvested, signaling confidence from both the financial community and a major enterprise customer.
Daniel Graf, a General Partner at lead investor Redalpine, commented on the strategic importance of the company's mission.
“Synthesized is tackling one of the most urgent and overlooked challenges in the age of AI: how to test, validate, and trust what we build. Their platform doesn’t just generate high-quality test data—it lays the foundation for a new class of autonomous QA agents that will transform how modern software is verified and shipped.”
Graf’s statement points to a future where quality assurance (QA) could become a fully autonomous process, a goal that Synthesized's technology helps make possible. The company's valuation following this investment was not disclosed.
From Academic Research to Enterprise Solution
Synthesized was founded in 2020 by Nicolai Baldin, who holds a PhD in machine learning and statistics from the University of Cambridge. The company initially focused on a specific niche: testing machine learning algorithms to identify edge cases and potential biases.
The QA Bottleneck
Software development teams frequently face delays due to testing. A 2023 study by CapGemini’s Sogeti found that 80% of software delays are caused by issues in setting up and running assurance tests. Furthermore, a 2022 Forrester Research report noted that 40% of QA budgets are consumed by manual test data management.
Over time, Synthesized expanded its scope to include the testing of traditional, rule-based software. The company targets some of the most time-consuming aspects of the QA process, such as creating realistic test data and environments for complex enterprise applications.
By automating these tasks, Synthesized reports significant efficiency gains for its clients. According to the company, Deutsche Bank has reduced the time required to find appropriate test data by 50%. Other customers have reportedly lowered their overall QA costs by up to 40%.
Competitive Landscape and Future Plans
The field of AI-powered software testing is becoming increasingly competitive. Synthesized competes with a range of other startups, including TestFort, QASolve, and Zencoder, as well as established technology firms like IBM, Micro Focus (now part of Open Text), and Perforce Software, which offer their own testing suites.
A key feature of Synthesized's platform is its focus on data security and privacy. The software operates within a customer's own cloud infrastructure or on-premises servers. “You don’t need to transfer code to us,” Baldin noted, highlighting a significant security advantage for enterprises handling sensitive data.
With the new $20 million in funding, Synthesized plans to execute an aggressive growth strategy. The company will focus on expanding its presence across North America and Europe. It intends to double its 35-person team over the course of the next year to support this expansion. Currently, Synthesized has offices in London and New York and maintains virtual operations in Japan.
