(Note: the company says the $200 million figure is a projection and is not recognized revenue.)
Higgsfield, a San Francisco-based developer of AI-powered video production tools, has closed an $80 million extension to its Series A financing, taking the startup's valuation above $1.3 billion, the company said. The funding round drew participation from Accel, GFT Ventures and Menlo Ventures as investors move to back firms applying generative AI to industry-specific workflows.
The company reported it has reached a $200 million annualized run rate, a figure it characterizes as a projection rather than recognized revenue. Management emphasized that the metric is a forward-looking pace number and not reflected as booked sales.
Higgsfield positions itself not as a competitor to large foundational model providers but as a platform integrator. Instead of attempting to build its own foundational models, the firm incorporates third-party models into an end-to-end, browser-based workflow, aimed at preserving consistency in characters and branding across AI-generated video content.
"We minimize the production tax so that, eventually, better stories and better ideas win," said Alex Mashrabov, Higgsfield's chief executive, describing the company's strategy to chain multiple AI systems through a proprietary reasoning engine. The approach is intended to maintain coherence across generated media and to serve production pipelines for marketing and social media teams.
Founded in 2023, Higgsfield released its browser-based product in March 2025. The company reports that social media marketers comprise about 85% of platform usage, and that the platform enables end-to-end workflows within a single system.
Investor interest in the AI video space has surged, with a range of startups and research labs either developing powerful base models or building applications tailored to filmmakers, advertisers and enterprise users. Higgsfield's backers say the market for AI-generated content among social media marketers could rival traditional entertainment markets.
Jeff Herbst, managing partner at GFT Ventures and a member of Higgsfield's board, pointed to the startup's unusually rapid revenue trajectory as a central reason for backing the company. "They had scaled to around $10 million in ARR from zero in a matter of weeks, and we’d never seen anything like it," he said.
Higgsfield plans to allocate the newly raised capital to three main priorities: expanding enterprise sales efforts, growing internationally and investing further in research and development. The company also intends to increase headcount substantially, moving from nearly 70 employees today to approximately 300 by the end of the year.
Key contextual takeaways below highlight the areas of market impact and operational focus arising from this funding and the company's stated plans.