Los Angeles-based startup Moonvalley, which focuses on developing AI tools for video creation, has secured $43 million in new venture capital funding, according to an SEC filing. The filing, which mentions 11 unnamed investors, follows the launch of Moonvalley’s inaugural AI video-generating model, Marey, roughly a week earlier. Previously, Moonvalley raised $70 million in seed funding from investors, including General Catalyst, Khosla Ventures, and Bessemer Ventures.
A Moonvalley spokesperson informed TechCrunch that the filing does not reflect the complete funding amount and the finalized figure will be announced in the coming weeks. The emergence of video generator tools has led to a surge of vendors in the market, risking oversaturation with firms like Runway and Luma, along with technology giants such as OpenAI and Google, releasing similar models rapidly.
Moonvalley’s Marey model, developed with Asteria, a newer AI animation studio, includes customization features like detailed camera and motion controls and can create HD clips up to 30 seconds long. Moonvalley claims that Marey poses fewer legal risks compared to some alternative video generation models.
Many generative video startups employ public data for model training, some of which may include copyrighted material. These companies often argue that fair-use doctrine legitimizes this practice, although rights owners have raised complaints and issued cease and desist orders.
Moonvalley is collaborating with partners to establish licensing agreements and packages videos into datasets, which the company purchases—a strategy resembling Adobe’s, which similarly obtains video footage for training through its Adobe Stock platform.
Artists and creators have expressed concerns about video generators potentially disrupting the film and television industry. A study commissioned in 2024 by the Animation Guild predicts that AI will impact over 100,000 U.S.-based film, television, and animation jobs by 2026.
Moonvalley plans to allow creators to request the removal of their content from its models and enable customers to delete their data anytime. It also offers an indemnity policy to shield users from copyright disputes.
Unlike some unfiltered video models that might include a person’s likeness in clips, Moonvalley is dedicated to implementing guardrails around its creative tools. Its models, similar to OpenAI’s Sora, will block certain content, such as NSFW phrases, and will not permit users to generate videos featuring specific individuals or celebrities.
