AvatarOS Secures $7M Seed Funding to Build AI-Powered Virtual Influencer Platform

A few years ago, the tech world was buzzing about the metaverse, leading to a surge in startups focused on digital avatars. While that initial excitement has faded, generative AI has reignited interest in virtual identities, making it easier than ever to create lifelike digital personalities. Companies across various industries are exploring how to use these avatars—D-ID and Synthesia in business, Zoom for virtual meetings, Glance for fashion, Praktika for education, and TikTok and Captions in the creator space.

But for Isaac Bratzel, the visionary behind virtual influencers like Lil Miquela and Amelia 2.0, something was missing. Despite the advancements in AI-driven avatars, most lacked real personality—something that made them feel more than just a digital face. He wanted to change that, and that’s how AvatarOS was born.

A Founder with a Vision

Bratzel’s journey in this space isn’t new. He has spent years shaping the digital avatar industry. From working at IPsoft, where he developed Amelia 2.0, to being part of Brud, the company behind Lil Miquela, and later at Dapper Labs after it acquired Brud, Bratzel has been at the forefront of this technology.

In 2022, he decided to take all that experience and start AvatarOS—a company dedicated to creating high-quality, AI-powered avatars that don’t just look good but feel real. And now, that vision has secured $7 million in seed funding, led by M13’s Latif Peracha, with contributions from Andreessen Horowitz Games Fund, HF0, Valia Ventures, and Mento VC.

Finding the Right Market Fit

Right now, AvatarOS is still exploring how best to bring its avatars to the market. Bratzel understands that just because something is technologically possible doesn’t mean people want or need it. The goal is to figure out where AI-powered avatars can truly add value.

For M13’s Latif Peracha, backing AvatarOS was an easy decision. “Isaac has an incredible track record in the avatar space—from IPsoft to Brud. He’s the right person to build this business,” Peracha said. Interestingly, part of the due diligence process involved talking to an AI-generated avatar of Bratzel himself, a unique way to assess both the founder and the technology.

Beyond Generic Avatars: What Makes AvatarOS Different?

Unlike many AI-powered tools that allow users to generate avatars with a click, AvatarOS is focused on creating truly high-end, lifelike 3D avatars. Bratzel compared it to spam emails—when content creation becomes too easy, the internet gets flooded with low-quality material. AvatarOS aims to be different by building avatars that stand out and hold long-term value.

One major inspiration is Lil Miquela—a digital influencer who evolved beyond just a single project and became a recognizable brand. AvatarOS wants to give companies that same ability: to create digital personas that feel authentic and have lasting impact.

Currently, the company is onboarding beta users and giving them access to a few avatars. It’s also launching a simple API, allowing businesses to integrate these avatars into their platforms. The AI-driven avatars can respond to users using large language models (LLMs), and companies can even customize aspects like camera angles and movement styles.

The Future of AI Avatars

Right now, AvatarOS directly creates premium, custom avatars for clients. But in the future, it plans to develop more tools that allow users to adjust and personalize avatars themselves. Bratzel believes that the biggest challenge isn’t just how avatars look, but how they move.

“Humans don’t move the same way. Every existing avatar tool can create something that looks like you, but the movement often feels robotic and generic. Our goal is to fix that,” he explained.

With the new funding, AvatarOS will expand its team and develop a machine learning-based deformer—a system designed to make avatar movements more natural and realistic.

A New Era for Virtual Avatars.

The rise of generative AI has opened new doors for virtual identities, and AvatarOS wants to lead this transformation. By focusing on authenticity, movement, and long-term value, the company hopes to create avatars that aren’t just digital copies but true virtual beings with distinct personalities.

As the world continues to embrace AI-driven technology, AvatarOS might just redefine what it means to be virtually human.