The hype around digital avatars surged with the metaverse boom, but as interest in the metaverse waned, so did many startups in this space. Now, thanks to generative AI, avatars are making a comeback, powering applications across enterprise, entertainment, fashion, and education. Companies like D-ID, Synthesia, Zoom, and TikTok are leveraging AI avatars in innovative ways. However, Isaac Bratzel, the creator of popular virtual influencers like Lil Miquela and Amelia 2.0, believes there is still a lack of high-quality avatars that not only look realistic but also reflect unique personalities. This vision led him to launch AvatarOS.
Bratzel’s expertise in digital avatars spans years. He previously held design roles at IPsoft (where he created Amelia 2.0) and Brud (the company behind Lil Miquela), before Dapper Labs acquired Brud. In 2022, Bratzel left Dapper Labs to build AvatarOS, aiming to redefine digital identity.
The company recently secured $7 million in seed funding, led by M13’s Latif Peracha, with participation from Andreessen Horowitz Games Fund, HF0, Valia Ventures, and Mento VC.
Finding the Right Market Fit for AI Avatars
AvatarOS is still in an exploratory phase, fine-tuning its product-market fit. Bratzel acknowledges that while technology enables many possibilities, customers don’t always need or want everything AI can offer.
M13’s Latif Peracha, the lead investor, emphasized that this funding round is about exploring the best business model. He described Bratzel as the ideal founder to build this company, given his strong track record in avatar technology.
In a unique twist, Peracha conducted part of his due diligence by conversing with an avatar of Bratzel before finalizing the investment.
AvatarOS: The Next Generation of AI-Powered Avatars
Unlike many click-to-generate AI avatars, AvatarOS is focused oncreating high-end, persistent digital identities.
“When content is easy to generate, it becomes oversaturated. We want to create avatars that stand out from the flood of generic AI-generated figures,” Bratzel explained.
Drawing a parallel to spam emails, he noted that mass-generated content dilutes uniqueness, making it crucial to differentiate high-quality avatars from low-effort AI creations.
Bratzel also pointed to Lil Miquela, explaining that she became a valuable long-term digital entity, rather than just a one-off project.
Currently, AvatarOS is onboarding beta users, allowing them to access a set of pre-existing avatars. The startup is also launching a simple API that enables businesses to integrate avatars into their websites.
Organizations can power avatars with large language models (LLMs) to deliver information and customize attributes such as camera angles and movements.
At the moment, AvatarOS itself creates premium, fully customized avatars. However, the company plans to roll out creation tools for clients, allowing more flexibility and personalization.
A major differentiator for AvatarOS is how avatars move.
“Most avatar solutions create digital figures that resemble real people but move generically. In reality, every person moves uniquely, and we want our avatars to reflect that,” Bratzel explained.
To achieve this, AvatarOS is investing in machine learning-based motion technology to capture and recreate natural human movement in digital avatars.
Future Plans & Expansion
The fresh $7 million funding will be used to expand the team and enhance machine learning-powered deformation technology, which will improve the realism of avatar movements.
As generative AI continues to shape the future of digital identity, AvatarOS aims to be at the forefront, creating premium, personalized avatars that are more than just AI-generated figures—they are enduring digital personalities.
