AI video editing startup Capsule has secured $12 million in Series A funding to roll out a major upgrade to its platform, aimed at reshaping how brands create and collaborate on video content. The New York-based company is building a next-gen AI-powered editor tailored for marketing, sales, and media teams that want to turn raw footage into polished stories without needing professional editing skills.
With this funding, Capsule plans to introduce a powerful new AI “co-producer” that acts more like a creative partner than a simple assistant. The tool will offer real-time suggestions on everything from clip sequences to title placements, helping teams tell compelling stories that resonate with audiences. According to CEO and co-founder Champ Bennett, the goal is to make video editing intuitive for anyone—even those without production experience.
The AI agent responds to prompts like “Make a sizzle reel from our latest event,” then pulls relevant clips from the company’s media library, arranges them into a logical narrative, and adds suggestions for titles, transitions, and visuals. This hands-on assistance promises to speed up video creation while improving performance across channels.
Capsule’s upcoming version will also support real-time collaborative editing. Team members will be able to work on the same project simultaneously—splitting up tasks such as one person editing the intro while another works on the outro. This feature builds on Capsule’s current toolkit, which includes commenting and note-sharing directly within the video timeline.
Since its public launch in October 2024 (following a beta run in 2023), Capsule has attracted big-name customers like HubSpot, Instacart, and Ramp. The company’s all-in-one AI video studio already includes transcription, clip summarization, brand-aligned title cards, AI-generated images, and animated text. The blend of automation and creativity helps teams cut post-production time significantly while ensuring brand consistency.
Capsule offers a freemium model, with an enterprise-tier subscription unlocking deeper collaboration tools and higher output quality. According to Bennett, growth has been strong—with a third of last year’s revenue coming from existing customers expanding their usage.
The $12 million round was led by Innovation Endeavors, joined by HubSpot Ventures and a slate of high-profile angels, including Frame.io founder Emery Wells, ex-Twilio exec François Dufour, Ramp co-founder Karim Atiyeh, and Instacart CMO Laura Jones. Previous investors like Bloomberg Beta, Swift Ventures, and Human Ventures also participated.
So far, Capsule has raised a total of $19.75 million. With the new capital, the team plans to scale up its hiring across product design, AI engineering, and visual design, while also bolstering sales efforts to bring its AI editor to more creative teams worldwide.
