Los Angeles-based AI startup Moonvalley has secured a fresh $43 million in venture capital, according to a recent SEC filing. Just days after debuting its first AI-powered video generation model, Marey.
The new funding round includes contributions from 11 unnamed investors. While the filing confirms the influx of capital, a company spokesperson said that the figure doesn’t represent the final tally. The full investment amount, they said, will be publicly announced in the coming weeks.
Moonvalley is joining an increasingly crowded field of generative video startups, as AI-generated clips continue to grab the spotlight. Backed by previous investments totaling $70 million from firms like General Catalyst, Khosla Ventures, and Bessemer Venture Partners. The company is betting big on customization and legal caution as it launches its first model.
Unveiled last week, Moonvalley’s Marey is the result of a collaboration with AI animation studio Asteria. Unlike many of its competitors, Marey offers more granular control, with users able to tweak camera angles, motion dynamics. And generate high-definition clips up to 30 seconds long.
While players like Runway, Luma, OpenAI, and Google continue to push the pace in generative video, many models are starting to look similar. Creating an oversaturated market where differentiation is tough. But Moonvalley hopes its thoughtful approach to licensing and content moderation will set it apart.
Rather than scraping publicly available video data — a practice that’s drawn legal fire over copyright concerns — Moonvalley says it’s working directly with partners to license and package training datasets. This model mirrors Adobe’s approach with its Stock platform, which pays creators for footage that’s used to train AI tools.
Legal risks around generative media remain high. Many startups argue that using public data for training qualifies as “fair use,” but copyright holders have increasingly pushed back with lawsuits and takedown demands. In response, Moonvalley plans to offer strong protections to its users, including a formal indemnity policy and the ability for creators to opt out of training sets. Customers will also be allowed to delete their own data at any time.
As the entertainment industry grows more wary of AI, the stakes are rising. A recent study by the Animation Guild estimates that more than 100,000 film, TV, and animation jobs in the U.S. could be impacted by AI by 2026 — an outlook that has only intensified concerns among artists and unions.
To address these concerns, Moonvalley says it’s building guardrails into its tools. Like OpenAI’s Sora, Marey won’t generate NSFW content or allow users to insert specific individuals — including celebrities — into generated videos. The company is also prioritizing safety and responsible AI use as it scales.
While it’s still early days for Moonvalley’s Marey, the startup’s latest funding signals that investors remain bullish on the future of generative video — especially when it comes with a more cautious and creative twist.
