AI video generation startup Higgsfield, co-founded by former Snap executive Alex Mashrabov, has announced a significant Series A funding extension, securing an additional $80 million. This latest investment brings its total Series A funding to $130 million and propels the company's valuation to an impressive $1.3 billion. Higgsfield offers an AI-powered tool for creating and editing videos, targeting consumers, creators, and social media teams.
The additional $80 million in stock was sold through an extension of its initial $50 million Series A round, which had closed in September. This brings the total Series A capital raised to $130 million, with the company now reporting a $1.3 billion valuation.
Higgsfield was founded by Alex Mashrabov, who previously served as Head of Generative AI at Snap. His journey to Snap followed the acquisition of his prior startup, AI Factory, by Snap in 2020 for $166 million. Mashrabov was a co-founder of AI Factory.
The company has reported rapid user adoption and revenue growth. Five months after launching its tool, Higgsfield claimed 11 million users. Just nine months in, the platform now boasts over 15 million users and an annual revenue run rate of $200 million. This figure reportedly doubled from a $100 million trajectory in approximately two months. According to its press release, the startup believes this growth places it in "rarified growth terrain," outpacing companies like Lovable, Cursor, OpenAI, Slack, and Zoom.
To differentiate itself from being perceived merely as an "AI slop" maker, Higgsfield is now emphasizing its utility as a business tool. The company highlights that its product is primarily utilized by professional social media marketers, indicating a significant evolution in platform adoption beyond casual content creation.
Despite this strategic pivot, the platform has faced scrutiny. Last month, Higgsfield was used to generate a controversial video titled "Island Holiday," which depicted individuals mentioned in the Epstein files alongside fictional characters vacationing on Epstein's island. While acknowledging the offensive nature of such content, the company also notes that its users frequently engage in projects centered on fashion and Hollywood-esque storytelling.
Investors participating in the Series A extension include Accel, AI Capital Partners, Menlo Ventures, and GFT Ventures.
