Capsule Raises $12M for AI Video Editor

Capsule Secures $12 Million to Enhance AI Video Editing Capabilities

Capsule, a provider of AI-driven video editing solutions, has announced a $12 million Series A funding round. This investment will be used to further develop its video editing assistant, designed for marketing, sales, and media professionals, as revealed on Wednesday.

New Features and AI-Powered Assistance

The forthcoming editor update will introduce features such as AI-driven recommendations and support for collaborative editing in real-time.

A key component of the upgraded studio software will be an AI-powered co-producer. This tool is intended to provide suggestions that empower brands to improve their storytelling abilities.

Interactive AI for Enhanced Video Production

“The experience will become more interactive, with the AI offering suggestions based on its assessment of how to improve video clarity and performance,” explained Champ Bennett, Capsule’s co-founder and CEO, in an interview with TechCrunch. “The primary objective is to enable individuals without specialized video expertise to create compelling video narratives.”

Users will be able to utilize the co-producer by entering prompts, for example, “Generate a promotional reel from our recent event.”

The AI agent will then suggest appropriate footage from the brand’s media assets, recommend a clip sequence, and propose placements for titles and graphics. This support spans the entire video production workflow, according to the company.

Real-Time Collaboration Tools

Capsule is also developing a real-time collaborative editing feature. This will streamline teamwork by allowing multiple users to work on different sections of a video simultaneously.

For example, one team member could concentrate on the video’s introduction while another focuses on the conclusion. This functionality complements the existing commenting system, which facilitates communication and note-sharing throughout the video.

Company Growth and Adoption

Capsule became publicly available in October 2024, following a beta testing phase in 2023. Since its launch, the platform has attracted attention from prominent organizations, including HubSpot, Instacart, and Ramp.

The AI studio provides a range of features designed to reduce editing time and accelerate post-production. These include automated video transcription, summarization for creating branded title cards, image generation, and text animations.

Capsule offers both a free version and a paid enterprise subscription.

Financial Performance and Investment Details

“Adoption rates are exceptionally strong; approximately one-third of our revenue last year came from existing customer expansion,” Bennett stated.

The Series A funding round was spearheaded by Innovation Endeavors, with contributions from HubSpot Ventures and angel investors like Frame.io founder Emery Wells, former Twilio executive François Dufour, Ramp co-founder Karim Atiyeh, and Instacart’s chief marketing officer Laura Jones.

Previous investors, including Bloomberg Beta, Human Ventures, and Swift Ventures, also participated. To date, Capsule has secured a total of $19.75 million in funding.

Future Plans and Expansion

The new capital will be allocated to expanding Capsule’s team, with a focus on hiring product designers, visual designers, AI engineers, and sales personnel.