AI video editing app Capsule announces $12 million Series A funding

AI-powered video-editing startup Capsule has announced it raised $12 million Series A funding, led by Innovation Endeavors, with participation from HubSpot Ventures and angel investors including Emery Wells (Founder & CEO, Frame.io), François Dufour (CMO, Augment & Twilio), Karim Atiyeh (Co-founder, Ramp), Gil Lara (Co-founder, Sprout Social), Robert Paige (Creative Director, Instacart), Laura Jones (CMO, Instacart), along with our existing backers at Swift.vc, Human Ventures, and Bloomberg Beta.

Back in February 2023, the company announced it had raised $4.75 million in a seed round, bringing the total funding to $6.75 million. Investors in that round were 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).

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.