AI video start-up Higgsfield hits $1.3B valuation after new funding
What's the story
Higgsfield, a San Francisco-based AI video generation start-up, has raised $80 million in a Series A extension round. The funding, led by Accel, GFT Ventures and Menlo Ventures, has pushed the company's valuation to over $1.3 billion. The fresh capital will be used for enterprise sales expansion, international growth and further R&D efforts.
Innovative strategy
Approach to AI video generation
Unlike other companies, Higgsfield doesn't compete with OpenAI and Google. Instead, it integrates third-party models into its platform. The company's CEO Alex Mashrabov said, "We minimize the production tax so that, eventually, better stories and better ideas win." This approach has helped Higgsfield stand out in the rapidly growing AI video generation market.
User growth
Platform and user base
Higgsfield's platform allows users to run end-to-end workflows within a single system. The company was founded in 2023 and launched its browser-based product in March 2025. Social media marketers account for about 85% of the platform's usage. In just five months after launch, Higgsfield had already attracted 11 million users, a number that has now grown to over 15 million.
Financial success
Revenue and growth trajectory
Higgsfield has also seen a huge jump in its revenue. The company is on a $200 million annual revenue run rate, having doubled from a $100 million trajectory in just two months. This rapid growth rate has put Higgsfield in rarified growth terrain, outpacing companies like Lovable, Cursor, OpenAI, Slack, and Zoom in terms of growth speed. The company's platform is mainly used by professional social media marketers now.
Expansion plans
Future plans and workforce expansion
With the new funding, Higgsfield plans to expand its workforce from nearly 70 employees to about 300 by the end of this year. The company also intends to push into enterprise sales and international markets. Jeff Herbst, a board member at GFT Ventures, said that demand for AI-generated content from social media marketers represents a market potentially larger than Hollywood.