Higgsfield quadruples valuation to $5.4B with $400M Series B
▼ Summary
– Higgsfield raised $400 million in a Series B round, valuing the company at $5.4 billion, just eight months after reaching a $1.3 billion valuation.
– The company was founded in 2023 by former Snap executive Alex Mashrabov and focuses on AI image and video generation.
– Higgsfield has gained attention for AI-generated movies shown at Cannes and in New York, and offers tools like Cinema Studio and Marketing Studio.
– The company reports $700 million in annualized revenue, 30 million users across 200 countries, and works with 390 of the Fortune 500 companies.
– The new funding will be used for hiring, product development, and securing compute capacity, as video AI is compute-intensive, and Higgsfield competes with Synthesia and Runway.
Higgsfield has closed a massive $400 million Series B round, pushing its valuation to $5.4 billion. The announcement, made Monday, comes just eight months after the company was valued at $1.3 billion, marking a staggering fourfold increase in a remarkably short window.
The company, founded in 2023 by former Snap executive Alex Mashrabov, specializes in AI-powered image and video generation tools. Over the past year, it has generated significant buzz by premiering AI-created films at Cannes and in New York. Its product suite includes Cinema Studio, designed for filmmakers looking to direct AI-driven movies, and Marketing Studio, built for advertising and marketing teams. In the release accompanying this funding announcement, Higgsfield reported $700 million in annualized revenue and a user base of 30 million spanning 200 countries.
Enterprise adoption has emerged as a key growth engine. The company says it now works with 390 of the Fortune 500. Mashrabov told TechCrunch that he anticipates “enterprise adoption of video AI to become much more deeply embedded in everyday marketing and creative workflows.”
The fresh capital will go toward standard operational needs such as hiring and product development, but a significant portion is earmarked for compute infrastructure. “Video is one of the most compute-intensive domains in AI,” Mashrabov explained. A single minute of video, he noted, requires the same processing power as roughly 60,000 words of text. Securing dependable compute capacity has become a necessary cost of doing business for anyone hoping to compete with the likes of Synthesia and Runway.
DST Global led the round, with participation from a broad group of investors including Goldman Sachs Alternatives, Valor Capital, and Tribe Capital.
(Source: TechCrunch)
