Hedra raises major funding boost to expand AI video platform

Hedra has raised USD $32 million in a Series A funding round to support its AI-driven video generation platform and expand its reach from the creator economy to enterprise marketing.

The funding round was led by Andreessen Horowitz's Infrastructure fund, with participation from existing investors such as a16z speedrun, Abstract, and Index Ventures.

The new investment increases Hedra's total funding to USD $44 million since its previous announced raise in 2024.

Hedra's platform utilises artificial intelligence to streamline and democratise video creation, allowing marketers and content creators to generate high-quality, character-driven videos at speed.

The company's technology is particularly relevant as traditional video production processes can be lengthy and expensive, often costing thousands of dollars per minute.

The company reports that more than 2.5 million users have created over 10 million lifelike videos using its platform to date. Hedra now aims to support enterprise marketing teams who require scalable, character-focused content for purposes such as seasonal campaigns or timely cultural responses.

The founder and Chief Executive Officer, Michael Lingelbach, has a background in theatre, which has influenced the company's emphasis on storytelling through digital characters. Reflecting on the company's approach, Lingelbach stated: "We're building the next generation of storytelling technology to empower content creators and enterprise marketers to tell narratives at scale on their own."

"Getting over the uncanny valley of compelling performance is the hardest frontier in video, and with our Character-3 foundation model, we're devoted to crossing it."

Central to Hedra's offering is its Character-3 foundation model, described by the company as the first omnimodal model that integrates text, image, and audio for the creation of character performance videos.

The model supports a range of output styles, from professional spokespeople and animated mascots to animal-inspired characters, with the option for full-body cinematic or close-up framing.

Hedra Studio, the user interface built around the Character-3 model, allows users to rapidly convert concepts into visual stories through a simplified workflow. According to the company, this technology is designed to address the needs of both individual creators and large teams seeking to efficiently deliver video content that resonates with audiences.

High-profile users of Hedra's platform include social media creators and enterprise teams such as Jon LaJoie and Reid Hoffman. The company suggests that, faced with economic pressures and a highly competitive digital space, marketing teams increasingly need flexible video tools that deliver both speed and emotional impact.

Lingelbach added, "This kind of creative agility is no longer just a nice-to-have — it's essential for capturing attention in an increasingly crowded digital landscape."

He contrasted Hedra's product with competitors, stating that its unified workflow enables users to integrate story, sound, and video generation while allowing for the creation of customisable digital characters with unique appearances, voices, and personalities.

Matt Bornstein, Partner at Andreessen Horowitz and now a member of Hedra's board, commented on the investment: "Hedra is building foundational technology for the next generation of media.

Character-3 is a breakthrough model that integrates text, video, and audio to create highly controllable, expressive characters. If you want to create AI-driven actors, it's the best model in the market by far. And that capability unlocks use cases across the creator economy, enterprise marketing, entertainment, and more. We're absolutely thrilled to back Michael and the Hedra team as they build the foundation model for generative characters."

The company has grown to a team of 20 and plans to triple its headcount by the end of the year, focusing its efforts on further improving the quality and controllability of its AI models for creative applications.

Hedra says its goal is to make video production more accessible to a wide spectrum of users, from individuals to global brands, by combining advanced AI models with user-friendly creation tools, removing barriers related to budget or technical expertise.