Analysis
Higgsfield, the AI video and image generation startup founded by former Snap executive Alex Mashrabov, has raised a new Series B led by DST Global, according to TechCrunch. The valuation climb:
- December 2025 valuation -- $1.3 billion
- New Series B raised -- $400 million
- New valuation -- $5.4 billion, roughly 4x in eight months
Tribe Capital, Goldman Sachs Alternatives' growth equity arm, Smash Capital, Fifth Wall, Valor Capital, Intel Capital, Liberty Global Tech Ventures and Mirae Asset Capital also participated in the round.
“The number to watch next is net revenue retention when Higgsfield discloses it, not the top-line $700 million.”
The company says it is now generating $700 million in annualized revenue and serves 30 million users across 200 countries, with 390 of the Fortune 500 among its customers. That revenue figure is the number that makes the valuation defensible: a 4x markup in eight months is aggressive even in this market, but it lands on top of what looks like genuine, fast-scaling paid usage rather than a pre-revenue narrative round.
From novelty to workflow
Higgsfield built its early reputation on splashy stunts -- premiering AI-generated short films at Cannes and in New York through its Cinema Studio product -- but the revenue mix now leans heavily on Marketing Studio, which lets brand and agency teams generate ad creative and video assets at a fraction of traditional production cost. That shift from artistic showcase to enterprise workflow tool is the same arc Midjourney, Runway and Synthesia have each tried to walk, with mixed success; Higgsfield's claim to 390 Fortune 500 logos is the strongest signal yet that a generative video vendor has cracked procurement at scale rather than staying a marketing department's side project.
The competitive field is crowded and well-capitalized: Runway, Luma, Pika and OpenAI's own Sora are all chasing the same enterprise video budget, and Google's Veo has the distribution advantage of shipping inside Workspace. Higgsfield's bet is that being fast and cheap at the top of the funnel -- consumer virality feeding enterprise conversion -- beats being technically superior but slower to reach a marketing team's desk.
What the 4x markup does not resolve is retention. Annualized revenue built substantially on marketing and creative-agency spend is more cyclical than infrastructure or coding tools, and a downturn in ad budgets would hit this cohort of AI companies first. The number to watch next is net revenue retention when Higgsfield discloses it, not the top-line $700 million.
