Higgsfield raises $400M from Goldman Sachs, DST Global at $5.4B valuation
Tech Funding News Abhinaya Prabhu ● Covered by 2 sources
Higgsfield raised $400M at a $5.4B valuation, up from $1.3B in January. Enterprise customers are now doing the heavy lifting, not just flashy demo clips.
Based on reporting by Tech Funding News, Abhinaya Prabhu — read the original for the full story.
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Higgsfield has closed a $400 million round at a $5.4 billion valuation, a sharp jump from $1.3 billion in January. Goldman Sachs, DST Global, Liberty Global, and Intel backed the deal, alongside Tribe Capital, Smash Capital, Fifth Wall, Valor Capital, Mirae Asset Capital, and NTT DOCOMO Ventures.
The numbers are moving fast. Higgsfield says annualised revenue has reached $500 million, up from about $200 million at the end of 2025. That growth has come mainly from enterprise marketing customers, which now make up the majority of revenue. In January, businesses were still under a quarter of the mix.
Alex Mashrabov started the company in 2023 after leading generative AI at Snap. Before that, he sold AI Factory to Snap for $166 million in 2020. Higgsfield’s pitch was unusual from the start: instead of betting on one giant proprietary video model, it pulls in outside models and focuses on the workflow around them, so people can keep revising a clip instead of treating the first output as the final one.
The product went public in 2025 and says it now has more than 15 million users across 240 countries. But the money is clearly coming from businesses churning out multiple videos a day for social and ads, not from agencies selling one polished campaign asset at a time. That matters because the company’s story is starting to look less like a consumer breakout and more like a very profitable production line.
Higgsfield’s field has also narrowed. Runway, its closest Western rival, raised $315 million at a $5.3 billion valuation in February, then shifted toward world models for robotics and medicine and mostly moved out of marketing. In China, Kuaishou’s Kling has raised nearly $3 billion at an $18 billion valuation, with Alibaba, Tencent, and Baidu behind it. Higgsfield says the new money will go to enterprise products, security, and compute, which is the part that usually gets expensive before it gets elegant.
My take — AI-written commentary, not fact-checked reporting
This is the kind of AI story that makes investors feel clever and operators reach for the power bill. A $5.4 billion valuation on 10x revenue is fine until growth wobbles and compute starts acting like a tax. The market still loves video, but it likes margins even more, eventually.
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