AI-powered video-editing startup Capsule raises $4.75 million seed

AI-powered video-editing startup Capsule announced it raised $4.75 million in a seed round, brining the total funding to $6.75 million. The round comes on the heels of the recent beta launch of the generative AI-powered video editor. The company will use the investment to make key hires in engineering, product design, marketing, and to rapidly commercialize the product.

Investing in this round are Human Ventures, Swift Ventures, Clark Valberg’s Tiferes Ventures (Founder of InVision), Behind Genius Ventures, Array Ventures, and Bloomberg Beta. Notable angel investors include Amjad Masad (CEO, Replit), Arash Ferdowsi (CTO, Dropbox), Kyle Parrish (Head of Sales, Figma), Mike Mignano (ex-Head of Audio & Video, Spotify), Roy Ranani (Co-Founder, Chorus.ai) and Sahil Lavingia (Founder, Gumroad).

According to TechCrunch, the company hasn’t always been into AI technology. Founded in 2020, Capsule emerged from the same team that built the animated GIF capture tool and social network Phhhoto; after that shut down in 2017, the team moved on to an experiential marketing business for live events called Hypno. “But they soon had to pivot when the COVID-19 pandemic put an end to the need for Hypno’s in-person photo booths and other interactive experiences,” according to the TechCrunch article. That led to the creation of Capsule, a platform that began as a way for brands to reach their communities in the post-COVID era using online Q&As and video stories.”