San Francisco-based AI video generation startup Hedra has raised $32 million in a Series A funding round led by Andreessen Horowitz’s Infrastructure fund. The latest investment brings Hedra’s valuation to $200 million, according to a Reuters report citing an inside source.
This round saw continued support from earlier investors, including a16z Speedrun, Abstract, and Index Ventures. With this funding, Hedra’s total capital raised now stands at $44 million since its previous funding announcement in 2024.
Hedra specializes in AI-powered video creation tools designed for enterprise marketers. At the core of its platform is Character-3, an omnimodal foundation model that fuses text, image, and audio to generate lifelike digital characters. These AI-driven characters can deliver a range of outputs—from cinematic full-body visuals to close-up shots—suitable for brand mascots, spokespersons, and other digital storytelling needs.
Character-3 also powers Hedra Studio, a creative platform that helps users convert simple concepts into immersive visual narratives. With the fresh capital, Hedra aims to enhance the realism, precision, and user control of its models.
“We’re building the next generation of storytelling tools for content creators and marketers to scale their narratives,” said Michael Lingelbach, Founder and CEO of Hedra. “Crossing the uncanny valley with compelling digital performance remains a key challenge, and we’re committed to solving it with Character-3.”
Currently employing 20 people, Hedra plans to triple its team by year-end. The startup envisions becoming the leading creative platform for a new wave of media creators—from solo content producers to global enterprises.
Andreessen Horowitz partner Matt Bornstein, who joins Hedra’s board, praised the startup’s innovation: “Hedra is building core technology for the future of media. Character-3 is a standout model in its ability to deliver highly expressive, controllable AI-driven characters—unlocking opportunities across marketing, entertainment, and the creator economy.”
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News Source: Finance.yahoo.com
