Higgsfield raises $80M at $1.3B valuation

AI video generation startup Higgsfield has raised an additional $80 million in a Series A extension—a transaction that adds capital to an existing funding round. This new funding brings the company’s total Series A capital to $130 million, following a previous $50 million Series A round that closed in September. According to Higgsfield, the company has reached a $1.3 billion valuation with this extension.

Higgsfield was founded by Alex Mashrabov, the former head of Generative AI at Snap. Mashrabov previously co-founded AI Factory, a startup that Snap acquired in 2020 for $166 million. Higgsfield has now reached over 15 million users, growing from the 11 million users it recorded five months after its launch. The company reports that it is on a $200 million annual revenue run rate, which is a projection of annual revenue based on current performance. This run rate has doubled from a previous $100 million trajectory in about two months. Based on this growth, Higgsfield believes it is outpacing competitors in growth terrain, placing its trajectory ahead of companies like Lovable, Cursor, OpenAI, Slack, and Zoom.

To position itself as a business tool rather than an “AI slop maker,” Higgsfield is emphasizing that its product is primarily used by professional social media marketers. The company described this shift as “a major sign that the platform adoption has evolved beyond casual content creation.” Despite this transition, the startup continues to face allegations characterizing it as an “AI slop engine.” These criticisms were highlighted last month when the platform was used to create a video titled “Island Holiday.” The video drew scrutiny for its offensive nature, as it depicted people mentioned in the Epstein files alongside fictional characters on “vacation” on Epstein’s island.

The Series A extension was backed by a group of venture capital and investment firms. The investors participating in this funding round include:

• Accel
• AI Capital Partners
• Menlo Ventures
• GFT Ventures

Why it matters

Higgsfield is attempting to transition from a viral consumer app to a serious business tool, using its massive user base and revenue growth to justify a unicorn valuation. However, the company continues to face scrutiny over its content output despite its efforts to pivot toward professional marketing use cases.