Higgsfield Raises $400 Million in Series B Funding, Valuing Company at $5.4 Billion
Higgsfield announced on Monday that it has successfully raised $400 million in a Series B funding round, reaching a valuation of $5.4 billion. This latest funding comes just eight months after the company achieved a valuation of $1.3 billion.
Founded in 2023 by former Snap executive Alex Mashrabov, Higgsfield provides tools that enable users to create AI-generated images and videos. The company gained significant attention in 2023 by debuting AI-generated films at both the Cannes and New York film festivals. Its offerings include the Cinema Studio, designed for filmmakers to direct AI films, and the Marketing Studio, aimed at marketing and advertising professionals. In its release about the funding round, Higgsfield reported $700 million in annualized revenue and a user base of 30 million across 200 countries.
A growing segment for Higgsfield is the enterprise market, where the company is currently collaborating with 390 of the Fortune 500 companies. Mashrabov expressed to TechCrunch that he anticipates “enterprise adoption of video AI to become much more deeply embedded in everyday marketing and creative workflows.”
The newly raised capital will primarily address typical business needs such as hiring and product development, while also covering costs associated with computing power. Mashrabov noted, “Video is one of the most compute-intensive domains in AI,” comparing one minute of video processing to handling 60,000 words. Ensuring reliable compute capacity has become essential for maintaining competitiveness against other industry players, including Synthesia and Runway.
DST Global led the latest funding round, with participation from various investors including Goldman Sachs Alternatives, Valor Capital, and Tribe Capital.
