Strategic Funding to Accelerate AI Development

Mirage, the company behind the popular video editing app Captions, has raised $75 million in growth financing from General Catalyst’s Customer Value Fund (CVF). The funding marks a significant step forward in the company’s ambition to scale its AI-driven video technology and broaden its market reach.

From Captions to Mirage: A Shift in Identity and Vision

Over the past year, the company has undergone a notable transformation, rebranding from Captions to Mirage. This shift reflects a broader strategic direction—positioning itself as an AI lab focused on building advanced models while serving industries such as advertising and marketing.

As part of this evolution, Mirage has developed a specialized AI model designed to optimize pacing, framing, and attention dynamics in short-form video content—an increasingly critical area in digital media.

Freemium Model Introduced to Compete with Industry Giants

In January 2025, Mirage adopted a freemium pricing model to better compete with major players like ByteDance’s CapCut and Meta’s Edits, which launched later in the year.

The company has also expanded its offering into a full video creation suite, incorporating features from Captions. This platform enables businesses to efficiently produce and distribute videos at scale, catering especially to marketing teams and content creators.

Focus on “Assembly Intelligence” and Audio Innovation

Looking ahead, Mirage plans to introduce new AI models centered around what CEO and co-founder Gaurav Misra describes as “assembly intelligence”—the ability to construct videos by integrating multiple sources and components seamlessly.

The company has already introduced an audio model aimed at improving voice authenticity, particularly for international users. Misra explained:

“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.”

Strong Growth Metrics and Global User Base

According to analytics firm AppFigures, Captions has achieved over 3.2 million downloads in the past 365 days, generating $28.4 million in in-app revenue.

Misra also revealed that users have created more than 200 million videos on the platform to date. Notably, the company’s reach is highly international, with only 25% of its revenue originating from the United States.

Platform Integration to Target Small Businesses

Currently, Mirage operates a web-based marketing suite alongside its mobile-first Captions app. The company plans to integrate these platforms, aiming to better serve small businesses seeking streamlined tools for producing marketing content.

Investor Confidence in Market Position

General Catalyst’s CVF fund sees strong potential in Mirage’s business model. Pranav Singhvi, Managing Director at CVF, highlighted the company’s efficiency and scalability:

“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.”

Despite increasing competition in AI-powered video tools—from platforms like Canva, D-ID, HeyGen, Webflow, and Avataar—Singhvi remains confident:

“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.”

Expansion Plans Across High-Growth Markets

With fresh capital secured, Mirage is now focused on accelerating growth and expanding into high-potential Asian markets. The company aims to strengthen its position in the rapidly evolving AI video ecosystem while continuing to innovate across both creative and enterprise use cases.

Companies and Organizations Mentioned

• AI & Technology Companies: Mirage, Captions, ByteDance, Meta, Canva, D-ID, HeyGen, Webflow, Avataar
• Investment Firms: General Catalyst (Customer Value Fund – CVF)
• Analytics Firms: AppFigures