TL;DR
Higgsfield, an AI video generation startup founded by former Snap AI lead Alex Mashrabov, raised an $80M extension to its Series A and says it’s valued at $1.3 billion. The company reports rapid user and revenue growth and is shifting messaging toward professional social media marketers while facing content-misuse concerns.
What happened
Higgsfield reopened its prior $50 million Series A round and sold an additional $80 million in shares, bringing the total Series A to $130 million and valuing the startup at $1.3 billion. The company provides tools for creating and editing AI-generated videos for consumers, creators and social media teams. Founded by Alex Mashrabov — formerly head of generative AI at Snap and a co-founder of AI Factory, which Snap acquired in 2020 — Higgsfield reports rapid traction: roughly five months after launch it said it had 11 million users, and nine months in it reports more than 15 million users. The startup also claims it is on a $200 million annual revenue run rate, a pace it says doubled from about $100 million within two months. Investors in the extension include Accel, AI Capital Partners, Menlo Ventures and GFT Ventures. The company has highlighted growing adoption by professional marketers even as some outputs have drawn controversy.
Why it matters
- A $1.3B valuation marks Higgsfield as a unicorn and signals investor confidence in AI-generated video tooling.
- A reported $200M annual run rate — if sustained — would position the company among high-growth enterprise-adjacent AI startups.
- Shift toward professional social media marketers suggests the product may be moving from consumer novelty toward commercial adoption.
- The platform’s capacity to generate controversial or offensive content highlights ongoing content-moderation and reputational risks.
Key facts
- Series A extension sold for $80 million, bringing total Series A to $130 million.
- Company reports a $1.3 billion valuation after the extension.
- Higgsfield says it is on a $200 million annual revenue run rate, up from about $100 million two months earlier.
- User growth: roughly 11 million users at five months after launch, more than 15 million users at nine months.
- Founder Alex Mashrabov previously led generative AI at Snap and co-founded AI Factory, acquired by Snap in 2020 for $166 million.
- Investors in the extension include Accel, AI Capital Partners, Menlo Ventures and GFT Ventures.
- Product targets consumers, creators and social media teams with AI video creation and editing tools.
- The company reports increasing use by professional social media marketers and has been used to produce both fashion/entertainment content and contentious material.
What to watch next
- Whether Higgsfield can maintain or grow beyond its reported $200M annual revenue run rate — not confirmed in the source.
- How the company strengthens content-moderation tools and policy enforcement in response to misuse incidents — not confirmed in the source.
- Future fundraising or moves toward enterprise sales as the product positions itself for professional marketing teams — not confirmed in the source.
Quick glossary
- Series A: An early stage of venture funding used to scale a startup after initial seed investment, typically involving institutional investors.
- Valuation: An estimated market value of a company, often stated after a financing round and used to indicate company size and investor expectations.
- Annual revenue run rate (ARR): A projection of a company’s yearly revenue based on current short-term revenue figures, often used to signal growth momentum.
- Generative AI: A class of machine learning models that can create new content—text, images, audio or video—based on learned patterns from training data.
Reader FAQ
What did Higgsfield raise and what is its valuation?
The company sold an $80M extension to its Series A, taking the total Series A to $130M and reporting a $1.3B valuation.
Who founded Higgsfield?
Alex Mashrabov, formerly head of generative AI at Snap and co-founder of AI Factory.
How large is Higgsfield’s user base and revenue?
The startup says it has over 15 million users and is on a $200M annual revenue run rate.
Has Higgsfield faced any controversies?
Yes. The company was used to create a widely shared, offensive video called “Island Holiday” that depicted people mentioned in the Epstein files alongside fictional characters.
Is the company profitable or planning an IPO?
not confirmed in the source
Through an extension to its previous $50 million Series A round that closed in September, AI video generation startup Higgsfield has sold another $80 million worth of stock, bringing its…
Sources
- AI video startup, Higgsfield, founded by ex-Snap exec, lands $1.3B valuation
- AI News Daily
- BizToc
- Read Aloud For Me – AI Dashboard – AI Hub – AI Tools Catalog …
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