Pitch Deck: AI Video Startup Hedra Raises $32M Round Led by A16z - Business Insider
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A video of a baby interviewing a dog on a podcast went viral last month.
No, it wasn't real. It was an AI-generated video created by comedian Jon Lajoie, who used Hedra, an AI video generation platform, to make the animation.
Hedra's platform allows users to generate images, video, and audio with its web-based content creation studio.
"Our model and technology focuses on the most controllable, compelling characters, whether that's a hyperrealistic human or an animated character or even an animal," Hedra's CEO, Michael Lingelbach, told Business Insider.
On Thursday, Hedra announced that it raised a $32 million Series A fundraising round led by Andreessen Horowitz's Infrastructure fund. The round included returning investors such as A16z Speedrun, Abstract, and Index Ventures.
Since its launch in 2024, the AI video startup has rapidly raised capital. In August, it announced a $10 million seed investment round. In March, Amazon's Alexa Fund announced that it invested in the startup and several other AI companies. Hedra said it has raised a total of $44 million but has not disclosed a valuation.
Competition in the generative AI is hot, with buzzy companies like Captions, HeyGen, Synthesia, and Runway building tech around video and avatars (Hedra specified that it is not an avatar company).
"We're not trying to compete with Google Veo, we're not trying to compete with Sora," Lingelbach said. "We're focusing really firmly on building the best character models, and that's something that with this additional capital we can make another step function in doing."
Hedra's Character-3 "omnimodal" model combines images, text, and audio to generate video. Creating a character with Hedra begins by uploading an image and then uploading audio that they've either already recorded (like a podcast) or generated using text-to-speech models like ElevenLabs.
"Both voice and video are seeing rapid evolution right now," Lingelbach said. "We took a big leap forward on naturalness of expression with our current model."
Hedra's platform is also users to integrate outside models like ElevenLabs, Google Veo, and Flux "all in one workflow," Lingelbach said.
Hedra's core user base has been professional creators and marketers, Lingelbach said.
"We're already seeing a massive influx of AI-generated content," Lingelbach said. "My Instagram and TikTok feed are filled with various memes and also more serious content now that's AI-generated."
From comedy skits to faceless creator content to … talking babies, Hedra's already seen a wide range of use cases. Podcast content, particularly, has been a popular application of Hedra's tech.
"It's not really something that we anticipated initially, but it definitely has been driving a lot of our usage," he said.
In addition to the viral trend of AI baby-hosted podcasts that people have been creating using Hedra, others have used Hedra to create Studio Ghibli-style videos of the classic podcast interview clip.
With its recent raise, Hedra plans to expand into more enterprise marketing applications, expand its team, and open an office in New York City.
Note: Some slides have been redacted in order to share the deck publicly.
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But until now, creating compelling characters has been the most challenging part of content creation.
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Consumers love the fun content they can create on Hedra — ranging from memes to music videos to short films.
Prosumers are using Hedra for use cases such as video podcasts, social media, and developing IP.
Marketing teams are using Hedra to create UGC, product tutorials, and other content to drive sales conversions.
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And we've already gotten heavy inbound interest from businesses for professional use and have signed notable early enterprise customers.
Upcoming Enterprise Features:
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Key Leadership Team:
Founder / CEO
Head of Research
Research Lead
Jason Wilson: Head of Engineering
Alan Guo: Chief of Staff
Ramin Keene: Principal Engineer
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We're on a mission to build the world's best end-to-end storytelling platform. And we're just getting started.
This includes contact information for its CEO.
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