AI Video Startup Higgsfield Hits the Highs With $1.3B Valuation

AI video and image generator startup Higgsfield is proving popular.

Higgsfield has announced an $80 million Series A extension with participation from Accel, AI Capital Partners (Alpha Intelligence Capital’s US-based fund), and Menlo Ventures and others, bringing total Series A funding to more than $130 million and valuing the company at more than $1.3 billion.

The startup has climbed from startup launch to a $200 million annual run rate faster than anyone thought possible. Most companies spend years trying to reach these numbers—Higgsfield did it in months.

The trajectory started months ago when Higgsfield officially launched in April 2025. But the quiet times didn’t last long. Within two months of going live, the company had already hit $11 million ARR while attracting over two million monthly active users and peak daily users reaching 600,000.

Funding frenzy

When growth moves this fast, money follows even faster. The investment community has responded with funding rounds that reflect Higgsfield’s momentum. Jeff Herbst of GFT Ventures stepped up to lead a massive $50 million Series A round.

The funding story gets even more compelling when you zoom out. Higgsfield AI has pulled together $16.5 million across four funding rounds. The timeline tells the whole story: funding started in October 2023 and wrapped up by April 2024, with heavy-hitting investors like Davidovs Venture Collective, Alpha Intelligence Capital, and K5 Global Technology jumping in.

The earlier $8 million seed round was spearheaded by Amy Wu of Menlo Ventures.

Track record

Alex Mashrabov isn’t your typical tech entrepreneur with big dreams—he’s got the track record to back up Higgsfield’s rise. The company’s founder previously served as Head of Generative AI at Snap and co-founded AI Factory, which Snap acquired for $166 million in 2020.

This proven experience in AI innovation provides crucial context for understanding why Higgsfield has been able to move so fast. Mashrabov isn’t experimenting with untested ideas—he’s building on years of experience scaling AI products at big companies.

The vision driving this success centers on something Higgsfield calls a “video reasoning engine.” This system is designed to understand and create content using cinematic language. The technology represents a leap forward in how AI processes and generates video content, moving beyond simple editing tools to something that actually understands visual storytelling.

Picture the future

The numbers coming out of Higgsfield signal something bigger than one company’s success story. When a startup can cross $50 million ARR and reach 11 million users in less than six months since launch, the entire industry arguably needs to recalibrate what’s possible.

Fourteen investors now back the company, and that level of confidence from the investment community suggests this isn’t a flash in the pan. Video AI technology appears to be hitting a perfect storm of market demand, technological maturity, and timing that’s creating opportunities for rapid scaling.

What began as a short-video platform competing with ByteDance has evolved into one of the world’s most widely adopted AI video tools.

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