Runway Launches $10M Fund and Builders Program for Early-Stage AI Startups

Runway is expanding its focus from developing AI video models to fostering innovation built upon them.

The AI video generation startup has established a $10 million venture fund to invest in early-stage companies operating at the intersection of AI, media, and world simulation, according to its founders. It is also introducing a Builders program that provides free API credits to startups from seed to Series C stage. This initiative signals Runway's ambition to cultivate an ecosystem around its vision of "video intelligence."

Runway has emerged as a leader in AI video generation, with its tools widely adopted in film, advertising, and marketing. However, following the launch of its "general world models" last December, the company is now extending its reach beyond creative applications into broader use cases. It aims to collaborate with startups to explore possibilities beyond its internal scope.

"We believe video technology is a pathway to achieving video intelligence, which will unlock a wider array of applications across various industries. While we cannot pursue all of them directly, we can support their development through our research," said Alejandro Matamala Ortiz, Runway's co-founder and chief design officer.

Runway's investment thesis for the fund centers on three key areas:

• Technical teams advancing the frontiers of AI and developing novel architectures.
• Builders creating the application layer on top of foundation models and introducing AI to new use cases.
• Companies experimenting with innovative forms of media creation, storytelling, and distribution.

For the past eighteen months, Runway has discreetly supported several early-stage founders and companies, Ortiz noted. These include LanceDB, which develops databases for AI applications, and Tamarind Bio, which utilizes AI to design novel proteins for drug discovery. Some startups, like real-time audio generation company Cartesia, are working on products that complement Runway's own offerings.

"The next generation of AI models will be built on multimodal data—integrating video, audio, images, and text," said Chang She, co-founder and CEO of LanceDB. "LanceDB is constructing the essential infrastructure layer to enable this, and Runway is among the few investors who truly grasp its significance."

A sample Character created by Runway. Image Credits: Runway AI

This foundational philosophy also drives Runway's new Builders program. Eligible early-stage startups can apply to receive 500,000 API credits and gain access to Characters, Runway's recently launched real-time video agent API powered by its new family of general world models.

Characters enables users to interact with generative AI agents in real time, complete with a visual avatar and voice that can range from stylized to photorealistic. The Builders program is designed, in part, to discover what innovative applications startups develop using this technology.

"Until recently, interacting with a real-time video agent wasn't possible. We are genuinely interested in seeing which teams recognize and harness the potential and positive impacts of this technology," Ortiz explained.

The program is already active, with an inaugural cohort that includes Cartesia, MSCHF, Oasys Health, Spara, Subject, and Supersonik. These companies are leveraging Characters for applications such as AI-powered customer support agents, interactive brand personas, personalized onboarding experiences, real-time sales assistants, and synthetic media tools.

Ortiz expressed particular excitement about the potential in telemedicine and education. Given Runway's core expertise in entertainment, he also anticipates Characters being used in gaming and novel entertainment experiences.

"This initiative is part of our broader push into general world models: a suite of models that are interactive, real-time, and immersive," Ortiz said. "When you begin combining these elements, you can envision generating and simulating entire environments where you can participate and converse with the characters within them."

Other startups like Inworld and Charisma are also developing interactive AI characters for gaming and storytelling, while companies such as StoReel experiment with AI-generated shows that allow direct user interaction. Platforms like Character AI have already gained popularity for their conversational AI characters.

"We firmly believe a new kind of internet is emerging—one that is more personalized, immersive, and operates in real time," Ortiz concluded.