Andreessen Horowitz and Two Small Fish Back Viggle AI

Viggle AI, a new startup specializing in AI-powered character animation, has closed a $19 million Series A round led by Andreessen Horowitz with participation from Two Small Fish.

Viggle AI’s technologies are used to produce lifelike animations through simple text-to-video or image-to-video prompts. The company’s flagship technology product, known as JST-1, is a 3D foundational AI model designed to generate realistic animated characters through a built-in understanding of physics, which allows it to produce lifelike movements and expressions. Foundational AI models are large, pre-trained AI systems that can be adapted to different tasks. These models act as a starting point, making it easier to develop and customize AI applications for varied uses.

Users of JST-1 can input simple text or images, and JST-1 transforms these prompts into dynamic animations. As demand for AI tools that simplify content creation grows, Viggle AI has positioned itself as a provider of AI-driven animation technologies that make animation accessible to both professionals and hobbyists who may not have extensive technical skills.

Viggle AI was co-founded in 2022 by CEO Hang Chu and is headquartered in Toronto.

“We are excited to welcome a16z and Two Small Fish as partners in our next phase of growth,” said Mr. Chu. “Their investment not only affirms our vision but also empowers us to redefine the possibilities in AI-driven character animation. As more people seek to integrate AI for a more enjoyable and accessible creative process, Viggle helps seamlessly align consumer demand by combining the best methodologies for building and scaling AI. We look forward to expanding the reach of our technology to an even broader audience and expanding the boundaries of creativity for everyone.”

According to Viggle AI, the new capital will be used to expand product development, including the recently launched Viggle Creator Program, scale operations, and extend the company’s market reach.

The company’s technology went viral earlier this year when videos featuring Joaquin Phoenix’s Joker character, seamlessly animated into a rapper’s walkout at a major music festival, circulated widely on social media. This moment catapulted Viggle AI into the spotlight and demonstrated the potential of its technology to revolutionize content creation in entertainment.

As expected, Viggle AI operates in a rapidly evolving market, where the integration of AI technologies into creative processes is accelerating. According to industry forecasts, the global animation market is expected to grow significantly over the next decade, driven by the increasing demand for high-quality animated content across film, television, and digital platforms. AI-powered tools like Viggle AI are seen as crucial to meeting this demand by streamlining the animation process, thereby reducing production timelines and expenses.

Andreessen Horowitz sees Viggle AI as a leader in the emerging field of controllable video generation. “Viggle AI is helping drive a major shift in how content creators approach creation with character and scene consistency,” said Justine Moore, a partner at Andreessen Horowitz. “We’ve been impressed with Viggle’s early momentum and the user base it’s already achieved, and we can’t wait to see where their continued innovation will take us.”

Viggle AI faces competition from several other companies in the AI-driven animation space, including Runway, Synthesia, DeepMotion, Reallusion, and NVIDIA’s Omniverse platform. Each of these competitors is exploring different aspects of AI and animation, from video editing and motion capture to 3D character design and simulation.

The involvement of Andreessen Horowitz and Two Small Fish in Viggle AI’s Series A round also highlights the growing interest from venture capital firms in companies that are pushing the boundaries of what AI can do in creative fields.

Andreessen Horowitz (also known as a16z) invests in seed to venture to growth-stage technology companies across AI, bio + healthcare, consumer, crypto, enterprise, fintech, games, infrastructure, and companies building toward American dynamism. The firm has $65 billion in assets under management across multiple funds and is headquartered in Menlo Park, California, with additional offices in San Francisco and New York City.

Toronto-based Two Small Fish invests in deep-tech early-stage companies that are active in artificial intelligence, protocols (rules or standards that define how data is transmitted and received over networks), and semiconductors. The firm was co-founded in 2018 by Eva Lau and Allen Lau, who previously co-founded Wattpad, a digital storytelling platform.

“Viggle represents the future of content and will upend the entertainment industry much like Wattpad did,” said Mr. Lau. “As an advisor, I’ll provide guidance that’s rooted in my real-life experience of building a global entertainment platform from the ground up. I’m excited to further disrupt the entertainment industry with Viggle and change how content is created and remixed in the age of Generative AI.”

Two Small Fish is currently investing through its 2023 $30 million TSFV Fund III LP.