Latent Technology, a London-based startup specializing in AI-powered animation tools for game developers, has raised $8 million in a seed funding round. The company, founded in 2022 by Jack Harmer and Jorge del Val, is developing a new approach to animation based on what it calls "generative physics." This method combines neural networks with real-time physics to produce animation that responds dynamically to gameplay conditions, offering an alternative to traditional, pre-scripted animation techniques.
Latent Technology Raises $8 Million
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Seed round brings total funding to $8 million
The seed funding round was co-led by AlbionVC and Spark Capital, with participation from Root Ventures and Alumni Ventures. The capital will support continued development of Latent's core technology and product offerings, particularly the Latent Behaviour Engine. This tool is designed to help game developers implement real-time, emergent animation behaviors in their games with minimal manual intervention. The company is currently working with select studios through a closed beta and plans to release two technology demos later in the year showcasing the system's capabilities.
Latent's technology is built on a proprietary model called Phoenix, described by the company as a foundation model for animation. Unlike large language models, Phoenix is designed specifically to generate physical animation in real-time. CEO Jorge del Val explained that the goal is to provide game developers with a tool that allows them to define interactive behaviors without relying on pre-rendered or pre-scripted movement sequences.
Latent Technology Raises $8 Million
Addressing rising development costs with procedural animation
Game development budgets continue to climb, with projections showing a compound annual growth rate of 8 percent through 2028. This trend puts increasing pressure on studios to deliver high-quality content while managing costs. Latent Technology believes its generative physics model can help address this challenge by reducing the manual effort required to animate game characters and environments. The system allows developers to quickly prototype and deploy behaviors that adapt to changing gameplay conditions, improving both development efficiency and player experience.
Del Val stressed that the company is focused on foundational change rather than incremental improvement. While many in the industry are using AI to optimize existing processes, Latent's approach is designed to introduce entirely new possibilities in animation, where characters appear to interact naturally and respond in real time with lifelike behavior.
Latent Technology Raises $8 Million
Building tools for next-generation game pipelines
Latent is positioning its technology as a core component of future game development pipelines. The company plans to stay closely aligned with developer needs by shipping playable demos and refining tools through direct feedback. By removing the traditional barriers of hand-crafted animation, Latent aims to make it easier for developers to experiment with and deploy new types of interactive content.
The team currently consists of six members and is expected to grow over the coming months as the company hires for both technical and product roles. Latent is operating under a hybrid remote model and continues to focus on developing the tools needed to support its core animation technology.
Recognition as an emerging force in game tech
Latent Technology was recognized as a "Game Changer" at an industry event in 2024, highlighting its potential impact on game development. AlbionVC investor Sebastian Hunte suggested that the company's generative animation model could become foundational to game development in the same way that large language models have transformed content creation. Latent's emphasis on dynamic, emergent experiences positions it as a notable player in the ongoing evolution of real-time game development.
As the company moves forward with development and expands access to its tools, Latent Technology aims to establish generative physics as a standard for animation in modern games, providing a flexible and responsive alternative to conventional animation pipelines.
