AI video startup Higgsfield has closed an impressive $80 million extension to its Series A round, pushing its valuation beyond $1.3 billion. With this, the total raised in the Series A stands at $130 million. The raise came from Accel, GFT Ventures, and Menlo Ventures. This shows investors backing companies that build practical video tools rather than competing directly with the largest model developers.
With its funding, the company plans to expand enterprise sales, grow its global footprint and deepen its research and development efforts. Its team, currently around 70 employees, is expected to grow to nearly 300 by the end of the year.
Brainchild of AI experts
Higgsfield’s roots trace back to CEO Alex Mashrabov, formerly head of Generative AI at Snap. Before that, Snap acquired his prior startup, AI Factory, for $166 million in 2020. Mashrabov co-founded Higgsfield with CTO Yerzat Dulat and third co-founder Mahi de Silva, combining deep product experience with technical strength.
While large labs race to build universal video systems, Higgsfield has taken a different route. Instead of reinventing foundation models, the company integrates the best third-party models into its platform. This allows it to move faster and focus on solving industry-specific challenges.
The company’s mission is to remove the production tax so better stories can rise to the top. With this approach, Higgsfield has built a proprietary reasoning engine that integrates multiple systems, ensuring consistent characters, branding, and styling across the entire video.
For advertisers and marketers, this addresses the continuity issue, a major pain point in automated video creation.
In addition, Higgsfield is building a platform for consumers, creators, and brands to produce and refine high-quality videos at speed, and its momentum suggests this market is only beginning to take shape.
Soaring demand from marketers
Founded in 2023, Higgsfield launched its browser-based product in March 2025, enabling users to create and edit videos within a single workflow. The simplicity has resonated with its target audience, and social media marketers now make up about 85% of its usage.
The San Francisco startup is already showing strong commercial momentum. It has reached a $200 million annualised revenue run rate, a remarkable projection for a company founded just two years ago. Its trajectory reflects accelerating demand from marketers, creators, and brands seeking streamlined video production.
The broader market for advanced video tools is heating up, driven by companies like Runway and Synthesia. Meanwhile, emerging social platforms built around AI-generated media, including OpenAI’s Sora, signal a cultural shift in how audiences consume and share content.
Higgsfield’s strategy positions it in the middle of this transformation, aiming to serve creators who need fast, reliable output rather than the resources of heavyweight research labs.
