AI video generation unicorn Higgsfield closes $400M round at $5.4B valuation; annualized revenue jumps from $20M to $700M
AI video generation startup Higgsfield closed a $400 million round on August 17 at a $5.4 billion valuation, with investors including Goldman Sachs, Intel, DST Global and Liberty Global. Enterprise revenue has grown from under 25 percent in January to a majority share today.
Reports on August 17 said AI video generation startup Higgsfield closed a $400 million funding round at a $5.4 billion valuation, with investors including Goldman Sachs, Intel, DST Global and Liberty Global. Founded two years ago by former Snap executive Alex Mashrabov, the company's valuation growth has far outpaced traditional SaaS cadences, with annualized revenue jumping from roughly $20 million a year ago to approximately $700 million in August.
Higgsfield now serves over 30 million users across 238 countries and territories, with the US as its largest market. A more important structural shift is the revenue mix: enterprise revenue, which accounted for less than 25 percent in January, now represents the majority, meaning Higgsfield has moved from a creator-tools positioning to the enterprise content production market.
This shift places Higgsfield into a much larger contest over enterprise content production, where AI-generated video could lower production costs and dramatically increase the volume of advertising and marketing material that companies can produce. Mashrabov told the Financial Times that businesses now account for most of the company's revenue, up from less than a quarter in January. The round also marks the latest bellwether for the AI video generation category, where Runway and Pika have similarly seen rising valuations and funding rounds.