An up-and-coming video-generation startup—and its new investors—may get more than they bargained for when it comes to competition.
AI-powered video startup Genmo is set to raise at least $30 million in funding from NEA, according to 3 people familiar with the situation. Word of the fundraising follows OpenAI’s preview of a new video generation model dubbed Sora, which sent AI enthusiasts on X into a tizzy and put a damper on rival video startups earlier this month.
Genmo joins a fray of upstarts—including Runway, Pika Labs and, eventually, Midjourney—hoping to automate video creation and editing for filmmakers, producers, graphic designers and creators. Cumulatively, these companies have raised more than $550 million from investors such as Google, Nvidia and Lightspeed Venture Partners.
After Sora’s release drew a lot of attention, one backer for a rival startup told me that they took solace in the fact that the strong leaders of the firm would make it a good acquisition target at the very least. OpenAI’s reputation as a startup killer has made investors wary of backing competitors, leading some startups to struggle to raise funds or even consider selling.
