Capsule has secured $12 million in a Series A funding round as it prepares to roll out an upgraded version of its AI-powered video editing assistant aimed at marketing, sales, and media teams.
The updated platform introduces advanced features, including an AI-driven co-producer that supports users throughout the video creation process, offering intelligent suggestions to enhance storytelling and production quality. Capsule CEO and co-founder Champ Bennett explained that the new update would create a more interactive editing experience, using artificial intelligence to propose choices designed to significantly improve video clarity and performance, especially for those without professional editing experience.
Among the new capabilities is the ability for users to provide specific prompts—an example might be, “Create a sizzle reel from our latest event.” From there, Capsule’s AI is designed to search through the client’s existing media library, automatically recommend the best footage, arrange the suggested clips in an effective narrative order, and even indicate optimal positions for adding titles and graphics.
Moreover, Capsule plans to introduce real-time collaborative editing, enabling multiple team members to simultaneously contribute to different segments of the same video project. This feature will augment Capsule’s current commenting tool, which allows team participants to leave messages and feedback directly within their videos.
Since publicly launching the platform in October 2024 following a beta period, Capsule has quickly attracted distinguished corporate users such as HubSpot, Instacart, and Ramp. The company’s studio software, designed to significantly cut down editing time and streamline post-production tasks, currently includes functions like automated video transcription, intelligent simplification of video introductions to create branded title screens, image generation features, and dynamic text animations.
Capsule offers both free and enterprise-level subscription-based services. According to Bennett, user adoption has exceeded expectations, with a considerable proportion of last year’s revenue growth attributable to existing client expansions.
The company’s recent funding round was spearheaded by Innovation Endeavors, with HubSpot Ventures and a constellation of prominent angel investors also participating. Notable angel investors include Emery Wells, the founder of Frame.io; François Dufour, formerly an executive with Twilio; Karim Atiyeh, co-founder of Ramp; and Laura Jones, Instacart’s Chief Marketing Officer. Capsule’s prior investors—Bloomberg Beta, Human Ventures, and Swift Ventures—also joined the latest round, bringing the startup’s cumulative funding up to $19.75 million.
Capsule intends to leverage the fresh capital infusion to grow its workforce, focusing on hiring experienced product designers, visual artists, AI engineers, and bolstering its sales infrastructure.
