AI Video Startup Moonvalley Raises $53M in Funding

Moonvalley Secures Additional Funding for AI Video Tools

Approximately one month following an announcement of $43 million in new funding, Moonvalley, a Los Angeles-based startup specializing in AI-powered video creation, has reportedly raised further capital, as indicated by a filing with the Securities and Exchange Commission (SEC).

The filing, submitted on Thursday, details that Moonvalley has secured approximately $53 million in total funding to date from a collective of 14 investors who remain unnamed.

Funding Details and Company Growth

This latest investment represents an additional $10 million in cash, supplementing rather than replacing a previous funding round. PitchBook estimates this brings the company’s cumulative funding to around $124 million. This follows their $70 million seed round completed last November. Moonvalley has not yet issued a public comment regarding these figures.

The proliferation of video generator tools has resulted in a highly competitive market. Numerous startups, including Runway, Lightricks, Genmo, Pika, Higgsfield, Kling, and Luma, alongside tech industry leaders like OpenAI, Alibaba, and Google, are rapidly releasing new models.

Often, the distinctions between these models are minimal.

Marey Model and Differentiation Strategy

Moonvalley’s Marey model, developed in partnership with a new AI animation studio called Asteria, provides extensive customization options. These include precise camera and motion controls, and the ability to generate “HD” video clips up to 30 seconds in length.

Moonvalley asserts that its model also presents a reduced legal risk compared to some competing video-generation technologies.

The company’s primary strategy for differentiation—and the source of significant venture capital interest—lies in the data used for model training and the safety measures integrated into its video creation tools.

Addressing Copyright Concerns

Many generative video startups rely on publicly available data for training, some of which may be subject to copyright. While these companies often invoke the fair-use doctrine, rights holders have responded with complaints and cease-and-desist orders.

Moonvalley is adopting a different approach, collaborating with partners to establish licensing agreements and curate datasets for purchase. This method mirrors strategies employed by Bria and Adobe, which obtains content for training through its Adobe Stock platform.

User Interface and Capabilities

Moonvalley is also focused on developing a user-friendly interface for its model. The company’s software, which has not yet been publicly demonstrated, will feature storyboarding and “granular” clip adjustment tools, as revealed by Moonvalley’s co-founders in recent interviews.

Marey is designed to generate videos from various inputs, including text prompts, sketches, photographs, and existing video clips, according to Moonvalley.

Founding Team and Industry Context

Naeem Talukdar, formerly of Zapier, founded Moonvalley alongside former DeepMind scientists Mateusz Malinowski and Mik Binkowski. John Thomas, Moonvalley’s COO, previously co-founded another startup, Draft, with Talukdar. Bryn Mooser, head of Asteria, also serves as a co-founder.

The emergence of video generators has sparked concern among artists and creators, who fear potential disruption to the film and television industries.

A 2024 study commissioned by the Animation Guild, representing Hollywood animators and cartoonists, projects that over 100,000 U.S.-based jobs in film, television, and animation could be impacted by AI by 2026.

Commitment to Creator Rights and Safety

Moonvalley intends to provide creators with the ability to request removal of their content from its models, allow users to delete their data, and offer an indemnity policy to protect users against copyright claims.

Furthermore, Moonvalley is committed to implementing safeguards within its tools, unlike some “unfiltered” models. Similar to OpenAI’s Sora, Moonvalley’s models will restrict certain content, such as explicit material, and prevent the generation of videos featuring specific individuals or celebrities.

“We founded Moonvalley to make generative video technology that works for filmmakers and creative professionals,” Moonvalley stated in a blog post in March. “That means addressing fear and distrust, as well as solving technical problems that keep generative AI from being a realistic tool for professional production.”