Branded Video Creation Platform Capsule Raises $2 Million in Pre-Seed Funding

By Elijah Labby Tuesday, January 19, 2021

The pandemic has taken a toll on nearly every business, and one of the ways it has is the lack of person-to-person interaction in our daily lives. The startup Capsule wants to make that challenge a bit easier through their unique blend of easy-to-create video editing tools, and they’ve raised $2 million in pre-seed funding to help them bring their technology to more people.

What Is Capsule?

Capsule is, in essence, a place for companies to post Q&A prompts for staff and customers to respond to. All a Capsule user needs is a phone or webcam to start recording. Upon completion of the recording, the app will add music and graphics, all leading to a professional-looking video for businesses and a variety of other uses.

Capsule co-founder Champ Bennett says that this variety of uses has been a major selling point for the startup and its customers.

“What we immediately started to hear from both our existing customers and then, suddenly, a bunch of new customers that were coming our way, is that the platform was useful in so many different contexts,” he said in an interview with TechCrunch. “For example, UGC (user-generated content) campaigns or generating social content to promote a business, or awareness, or product reviews and testimonials, or even creators who just wanted a faster way to make content that looked and felt a little bit more professional.”

The Startup’s History

Bennett and his team have experience in this sort of thing. The team also previously founded another company, Phhhoto, which allowed users to capture and share gifs and was later cloned by Instagram, putting the startup social media out of business. The team pivoted and founded HYPNO, a branded video platform mostly geared for events, but when COVID-19 struck, they had to reorient their business.

And that’s where the new startup was born. Now, with funding from Array Ventures, Bloomberg Beta, and a number of angel investors, Capsule will continue to help companies unlock their creativity.

“It turns out that there are so many different people within businesses who are capable of creating video content. They just don’t have the technical know-how to do it. They’re not video editors,” Bennett said. “So what we’re really doing is untapping this creative potential that exists inside of businesses everywhere, small and large.”

And the startup has already garnered several high-level business clients like Google, Netflix, Samsung, United Service Organizations (USO), and even the Chicago Bulls.

So it’s clear that the young company is headed in the right direction. What’s more, the digital marketing industry is expected to grow at a compounded annual rate of 17.4%, so even bigger gains are likely just down the road for the startup and other similar businesses.

Capsule, it seems, has found a valuable COVID-19 era opportunity and has brought value to some of the world’s biggest companies. We call that a success.

About the Author

Headshot for author Elijah Labby

Elijah Labby is a graduate of the National Journalism Center. He has previously written for Broadband Breakfast, a technology and internet policy website.

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