San Francisco-based Fal (fal.ai) has raised $140 million in a fresh funding round led by Sequoia Capital, with participation from Nvidia’s Nventures and some top Silicon valley investors. The fresh round has valued fal at $4.5 billion. The deal, marking Fal’s third fundraise this year, signals intensifying investor demand for AI tools rapidly gaining traction with developers and enterprises.
The round brought in new backers including Kleiner Perkins and Alkeon Capital, while existing investors such as Andreessen Horowitz, Bessemer Venture Partners, and Kindred Ventures also participated. A person familiar with the valuation, who asked not to be identified because the information is private, told Bloomberg that the $4.5 billion figure is triple Fal’s valuation from just a few months earlier.
Founded in 2021 by Burkay Gur and Gorkem Yurtseven to solve large‑scale generative AI deployment challenges they observed in their previous tech roles.
Chief Executive Officer Burkay Gur said Fal has experienced explosive growth in the last year as image, video, and audio AI models become increasingly useful for work tasks.
“The most recent image models and image-editing and video-editing models, they’re just so much better,” Gur said. “Enterprises are actually using it.” He added that top use cases include design, productivity, marketing, ads, and product photography.
Fal, formally known as Features & Labels Inc., offers a central hub where developers can access a wide range of image, video, and audio models. Sequoia partner Sonya Huang said the company has captured strong momentum across the developer ecosystem.
“What I was hearing was that people really wanted this flavor of offering and that Fal had won over many of them,” she said. Given its traction, she sees an opportunity to “solidify this company as the category definer” for AI-generated media.
With the new capital, Fal plans to expand hiring, particularly within its sales team, which currently has only 15 people. The company also intends to allocate part of the funding toward acquisitions.
Last month, Fal acquired Remade, a Y Combinator-backed startup that creates AI tools for creative and design teams.
Gur said the company is preparing to launch a small investment fund dedicated to startups in the generative AI media space. “We have a lot of visibility into all of the small and large companies building with this technology,” he said. “And we want to actually support the ecosystem and take some strategic bets for companies that are extremely promising.”
Back in July, Fal raised $125 million in a Series C round led by Meritech, with participation from Salesforce Ventures, Shopify Ventures and Google AI Futures fund.
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