Artificial intelligence has made video creation accessible to everyone, but many AI video tools still lack proper audio support. Mirelo is building AI specifically designed to add soundtracks that match the action in videos.
Earlier this year, the Berlin-based startup released Mirelo SFX v1.5, an AI model that interprets videos to add synchronized sound effects. This innovation attracted attention from venture capitalists preparing for a generative AI revolution in gaming. The two-year-old German startup has raised a $41 million seed round led by Index Ventures and Andreessen Horowitz.
This new funding will help Mirelo compete more effectively in its emerging category. While the company was still in stealth mode and constrained by resources, larger firms like Sony and Tencent released their own video-to-sound effects models. Competitors also emerged from China, like Kuaishou-owned Kling AI, and from other startups such as ElevenLabs, which is also backed by Andreessen Horowitz.
Although Mirelo already differentiates itself with a narrower focus, outperforming these established models in the long term requires the startup to expand its team. The company expects its current team of ten people to double or even triple in size by the end of next year.
These new hires will support research and development, product development, and go-to-market strategy. The startup has published its models on several AI platform marketplaces and expects API usage to drive most of its revenue in the short term. It is also investing in building its own creator workspace, called Mirelo Studio, which could eventually support full professional use.
As Mirelo prepares to scale, the company and its investors are mindful of the training data concerns that have affected other generative AI companies. According to one investor, Mirelo based its models on public and purchased sound libraries and is signing revenue-sharing partnerships that respect artists’ rights. This tension is inherent to generative AI, but Mirelo is not displacing musicians and sound designers, at least not yet. With a freemium model that includes a recommended plan for creators priced at approximately $23.50 per month, the startup primarily targets amateurs and prosumers looking to add sound to AI-generated videos.
The founders argue that creators cannot fully benefit from AI video without audio. They cite filmmaking wisdom that sound is fifty percent of the movie-going experience, stating that sound fundamentally shapes the ambience of any visual scene.
Both co-founders are AI researchers and musicians, and the company has AI music generation on its roadmap. However, they are seeing more immediate demand for sound effects, partly because there is less research in this specific AI field compared to others. This presents an opportunity to build a sustainable competitive advantage.
This strategy could pay off for Mirelo. While the company declined to disclose its new valuation, it stated the figure increased very significantly compared to its earlier pre-seed round. That previous round was led by a Berlin-based firm, which also participated in the new funding, bringing Mirelo’s total capital raised to $44 million.
The startup is also backed by angel investors who lend credibility to its technology, including executives from other prominent AI companies.
The team recognizes that AI-generated videos may not remain mute for long, as competitors like Google’s Gemini are beginning to incorporate soundtracks. Yet, the founders feel vindicated by this industry shift. They compare it to the transition from silent films to talkies, emphasizing that adding sound makes a profound difference.