Investors catch AI marketing vibe

Investors catch AI marketing vibe

Higgsfield AI is in talks to raise between $400 million and $500 million led by DST Global at a $5 billion pre-money valuation, as first reported by The Information and confirmed by Axios Pro.

Why it matters: Companies that are showing AI can make marketing tools work and deliver more tangible results have captured investors' attention.

Between the lines: The San Francisco-based startup has leaned heavily into the marketing and advertising capabilities of its video platform and gained more traction with enterprise customers β€” who now account for a majority of the company's revenue.

  • The company introduced Supercomputer, an AI agent and production tool designed to autonomously handle end-to-end marketing and workflow, as well as a new integration for Anthropic's Claude for marketing.
  • Higgsfield has also focused more heavily on being a video orchestration platform and away from proprietary model building like other AI video generation firms such as Runway AI.

    • What we're hearing: Higgsfield received acquisition interest from Meta last year, a current investor confirmed to Axios Pro, adding it could receive similar attention from Adobe and Google as they seek out marketing and advertising AI video solutions.

    Zoom out: Other startups combining AI and marketing tools like Nectar Social and Bluefish AI have raised large rounds as investors see agentic AI as a way to help harness the industry's massive market size.

    Catch up quick: Higgsfield raised a Series A explosion in January at a $1.3 billion valuation from investors including Accel, AI Capital Partners, Capra Ventures, Menlo Ventures, and GFT Ventures.