Mirage Raises $75M to Expand AI Video Editing Platform Captions

Mirage, the company behind the video editing app Captions, has raised $75 million in growth financing. The funding comes from General Catalyst’s Customer Value Fund (CVF).

Shift from Captions to Mirage

Over the past year, the company has made changes to both its product and positioning. It rebranded from Captions to Mirage to reflect a broader focus on AI model development. In addition, it aims to serve industries such as advertising and marketing.

The company has also trained a model focused on pacing, framing, and attention dynamics in short-form videos. As a result, it is expanding beyond basic video editing tools.

Freemium Strategy and Product Expansion

In January 2025, Mirage moved to a freemium model. This shift helps it compete with tools like ByteDance’s CapCut and Meta’s Edits.

Besides that, the company now offers a broader video creation suite. This includes features from Captions and allows businesses to create and distribute videos at scale.

Focus on New AI Models

Mirage plans to continue building new AI models. However, it has not shared details about upcoming releases. The company says its future work will focus on “assembly intelligence.” This refers to combining multiple inputs to generate complete videos.

The company has also introduced an audio model designed to preserve accents. Speaking about this, co-founder and CEO Gaurav Misra said:

“The reason for the audio model was that we noticed that there was a gap in accents because a lot of our users are international. Accents are just very important. There was my own dad’s example. He was trying to use the app, and he would say a word in an Indian accent, and it would always make it sound like he’s talking in an American accent.”

Usage Growth and Revenue Trends

According to AppFigures data, Captions has recorded over 3.2 million downloads in the past year. It has also generated $28.4 million in in-app revenue.

Moreover, users have created more than 200 million videos on the platform. The company also reports a global user base, with only 25% of revenue coming from the U.S.

Platform Integration Plans

At present, Mirage offers its marketing suite on the web. Meanwhile, Captions continues to operate as a mobile-first editing app.

Going forward, the company plans to merge these platforms. This approach may help it better serve small businesses that need marketing video tools.

Investor Perspective and Market Competition

Pranav Singhvi, managing director at General Catalyst’s CVF, said Mirage has strong product-market fit.

“Mirage’s business equation is extremely figured out. They know exactly how to spend that dollar and generate a very attractive ROI. If you think about the market they’re going after, it’s in a sense an infinite total addressable market. You can start out in the creator world, the influencer world, and then use that as a mechanism to sell to enterprises as well,” Singhvi told TechCrunch.

The AI video generation space remains competitive. Companies like Canva, D-ID, HeyGen, Webflow, and Avataar continue to release new tools and features.

Despite this, Singhvi remains confident about Mirage’s position. “Regardless of what the other tools are out there, Mirage is clearly ahead of the pack from a unit economics standpoint. Ultimately, it’s all a reflection of their product,” he said.