Vienna-based AI startup Mostly AI, a pioneer in synthetic data, is shutting down after more than eight years in operation, according to CEO Tobias Hann. The company, which raised over $30 million in funding, was once considered a leading light in Austria’s burgeoning AI scene. Hann refuted reports of bankruptcy.
“After nearly nine years of building, we have made the difficult decision to cease operations. This was a step taken with mixed emotions,” Hann stated. “We would like to sincerely thank our team, our customers, and our investors for their trust, commitment, and support throughout this journey. Their dedication made it possible to build what we have built.”
“The topic of data privacy has lost relevance”
Hann declined to elaborate on the specific reasons for the company’s closure, but noted that startups “are inherently associated with high risks” and success is never guaranteed. “In recent years, the macroeconomic environment has changed significantly. The issue of data privacy has lost relevance in global markets, while growing pressure for deregulation has worsened the economic conditions for our business model,” the CEO explained.
Hann added that the AI sector is one of the most dynamic and rapidly evolving technology fields today. “Such environments inevitably produce a few clear winners, while others, despite having strong teams and solid foundations, are unable to maintain their position. While this is not the outcome we had hoped for, we are proud of the operate we have done and the people who made it possible.”
Mostly AI was a pioneer in synthetic data
Founded in 2017 in Vienna by data scientists Michael Platzer, Klaudius Kalcher, and Roland Boubela, Mostly AI emerged at a time when synthetic data was not yet widely adopted. Inspired by advances in AI-generated image synthesis and the obvious weaknesses of traditional data anonymization, the founders aimed to create structured, privacy-compliant datasets using AI. The company launched the first version of its Synthetic Data Platform in 2018, coinciding with the introduction of GDPR.
Since then, the company evolved from a pure synthetic data provider to a broader data intelligence platform. In addition to synthetic data, the platform likewise included mock data generation, simulated data, and AI-powered insights. This expansion reflects the growing demand for comprehensive data solutions in a privacy-conscious world.
Investments totaled $31 million
Mostly AI was among the Austrian AI startups to receive the most funding to date. According to Crunchbase, investments over the years totaled approximately $31 million. The most significant was a Series B round in 2022, when the company secured $25 million in investment from Citi Ventures, 42CAP (based in Munich), and Earlybird (based in Berlin) – even before the surge in generative AI hype following the launch of ChatGPT in November 2022.
In 2025, the company even offered a $100,000 prize for the generation of high-quality synthetic data that was both statistically accurate and privacy-compliant.
According to Trending Topics, there were attempts to sell the company in the second half of 2025, but these efforts appear to have been unsuccessful.
No bankruptcy, but still the end
Initial rumors of Mostly AI filing for bankruptcy surfaced from Johannes Mansbart, CEO & Co-Founder of Chatarmin. In a YouTube video, Mansbart claimed that Mostly AI was not only insolvent but also had “not even 10 paying customers” and had not returned “a single cent” to investors, which he described as a “red flag” for employees.
Tobias Hann disputed Mansbart’s claims. Mansbart has since revised his wording, stating that the company is ceasing operations rather than filing for bankruptcy.
Mostly AI: Wiener AI-Startup sammelt 25 Millionen US-Dollar ein
