Runway seeks $450M in new funding as interest in AI startups continues

Runway AI Inc., an artificial intelligence (AI) video generation startup, is reportedly in talks to raise $450 million in new funding at a $4 billion valuation, with the venture capital market still somewhat sluggish.

The report was reported by The Information, citing people involved in the deal and people who have spoken to Runway executives. Venture capital firm General Atlantic is reportedly involved in the financing talks.

Founded in 2018, Runway offers an AI platform that powers the video creation and editing process. In the company’s words, they’re “building artificial intelligence systems to usher in a new era of creativity where the best stories go untold.” Runway’s platform offers a suite of creative tools designed to simplify and improve the workflow for both professional and hobbyist videographers, including real-time video editing, auto-rotoscoping, and motion tracking.

The company’s AI-powered solutions aim to reduce the time and effort required to produce high-quality video content. For example, automated rotoscoping tools enable quick and accurate separation of foreground elements from the background, something that previously required significant manual effort.

Motion tracking, another feature offered by Runway, allows users to track moving objects in videos and apply effects to them. Automation streamlines the editing process, making it more accessible and saving time.

Runway was last in the news on June 17, when the company announced Gen-3 Alpha, a new AI model that can generate 10-second videos based on text prompts, which Runway claims can generate higher fidelity videos and better depict movement than previous models.

The company is also developing new safety features to ensure its AI video service isn’t used to generate harmful content. As part of that effort, the company will add a provenance system based on the C2PA standard, a standard developed by an industry consortium that includes Intel Corp., Arm Holdings Corp. and other major tech companies.

Ahead of the potential new venture capital round, Runway has raised $237 million to date, including a $141 million round in June 2023 and a $50 million round in December 2022. The company’s investors include Google LLC, Nvidia Corp., Salesforce Ventures LLC, Felicis Ventures, Amplify Partners, Lux Capital Management, Coatue Management and Madrona Venture Group, among others.

Photo: Runway