AI Video Startup Higgsfield, Founded by Former Snap Executive, Reaches $1.3B Valuation
Incident Overview
Through an extension to its previous $50 million Series A round that concluded in September, AI video creation startup Higgsfield has issued an additional $80 million in stock, increasing its total Series A funding to $130 million. The startup now reports it has achieved a valuation of $1.3 billion.
Higgsfield provides a platform that enables consumers, creators, and social media teams to produce and edit AI-generated videos. The company was established by Alex Mashrabov, a former head of Generative AI at Snap, who joined after Snap acquired his previous startup, AI Factory, in 2020 for $166 million. Mashrabov co-founded AI Factory.
Five months after launching its tool, Higgsfield reported 11 million users and positioned itself as a favored platform among content creators. Nine months in, the user base has expanded beyond 15 million, with an estimated $200 million annual revenue run rate, doubling from a $100 million target in roughly two months, according to the company.
The startup claims this rapid growth places it in elite company, surpassing firms like Lovable, Cursor, OpenAI, Slack, and Zoom, as stated in its press release.
To differentiate itself from being viewed merely as an AI slop generator, Higgsfield now highlights that the platform is predominantly utilized by professional social media marketers, “a key indicator that platform adoption has progressed beyond casual content generation.”
That said, the platform still functions as an AI-driven content generator. Recently, Higgsfield was used to produce a video titled “Island Holiday,” featuring individuals referenced in the Epstein files alongside fictional characters “vacationing” on Epstein’s island. Due to its sensitive content, the viral post on X will not be linked here.
Conversely, many users employ the tool for projects focusing on fashion and cinematic-style storytelling.
Investors participating in the Series A extension include Accel, AI Capital Partners, Menlo Ventures, and GFT Ventures.
