Descript vs Veed vs Kapwing: Who’s Winning AI Video in 2026?
By Jenny Liu, Director of Product @Yipitdata
New YipitData analysis of 1,300+ mid-market and enterprise companies shows Descript widening its lead in AI video editing, driven by accelerating customer growth and a step-change in monetization.
Descript is emerging as the clear leader in AI video editing — and the gap is widening.
That’s the pattern we see in Signals data tracking real usage and spend across mid-market companies as we move down the stack to the video editing layer, following last week’s analysis on AI video generation.
We analyzed Descript, Veed, and Kapwing to understand who’s gaining traction, how monetization is evolving, and where competitive dynamics are beginning to intensify in the mid-market.
According to our analysis, Descript isn’t just growing faster, it’s becoming the default tool for more teams, while the competitors struggle to maintain momentum.
Our analysis is powered by Signals, our proprietary B2B spend panel that tracks real software usage and spend across 1,300+ mid-market and enterprise companies, providing visibility into ~250,000 AI and software vendors.
We continue to leverage our upcoming Insight Agent to accelerate this work — surfacing trends like switching behavior, multi-vendor adoption, and cohort dynamics directly from the data.
Here’s what the data shows.
AI Video Background and Key Players
AI-native video editing platforms like Descript, Veed, and Kapwing are reshaping how teams create and edit content — enabling non-technical users to produce video through browser-based, AI-assisted workflows.
Among this group, Descript, founded in 2017, helped pioneer text-based audio and video editing, with features like transcription-first editing and voice cloning. It has built a strong early position among podcasters, marketers, and content teams. The company last raised a $50M Series C in November 2022. Its headcount has remained relatively stable since then, growing +2% Y/Y to 189.
Veed, founded in 2018, offers a browser-based video editing platform, with a greater emphasis on simplicity, templates, and fast content production — features that have helped it gain traction with marketing and social teams. Veed last raised a $35M Series A in February 2022, though its headcount has declined 10% year over year to 182.
Kapwing, founded in 2017, focuses on collaborative video editing and content tooling, with a strong presence among smaller teams and creators. It last raised an $11M Series A in September 2019 and remains a smaller player in the space.
B2B Spend Takeaways: Descript Expands Its Lead In AI Video Editing
Descript remains the clear mid-market category leader, with steady customer growth and an accelerating lead versus peers even as competition intensifies. In contrast, Veed shows more volatile momentum, while Kapwing remains smaller in scale.
Customer Growth: Descript Accelerates Mid-Market Adoption
As of January 2026, Descript grew +37% Y/Y to approximately 120 customers, following a meaningful acceleration in 2025. That growth is reinforced by usage patterns: Descript-only adoption remains the most common and continues to gain momentum, suggesting more teams are standardizing on the platform.
Veed’s trajectory has been less consistent. Its total customer count has dipped modestly — down 7% since peaking in June 2025 — and Veed-only usage declined more sharply over the same period, falling 17%. At the same time, the number of customers using both Descript and Veed plateaued throughout 2025, rather than continuing to expand.
Overall, the data points to a widening gap, with Descript continuing to pull ahead in mid-market customer adoption.
Exhibit 1: Descript widens mid-market customer lead in AI video editing as Veed adoption plateaus
Monetization Trends: Descript Drives the Majority of Category Spend Growth
Descript continues to lead the category on monetization, with that lead driven by a sharp acceleration in spend throughout 2025.
Between January 2025 and January 2026, Descript’s average monthly spend per customer scaled more than 2x to nearly $3,000. That increase in per-customer spend translated into a 75% Y/Y rise in total spend, making Descript the primary driver of meaningful mid-market spend growth in the category.
Notably, this momentum isn’t obvious from traditional growth proxies like headcount. Descript’s team has remained relatively flat (+2% YoY), meaning that investors that rely on hiring trends alone would likely miss the company’s accelerating usage and spend.
By comparison, both Veed and Kapwing remain at a significantly lower level of monetization. Each has average monthly spend below $1,000 per customer, placing them well behind Descript in terms of revenue per account.
Taken together, the data suggests that while multiple players are competing in the space, Descript is capturing a disproportionate share of the economic value.
Exhibit 2: Descript is driving all meaningful mid-market spend growth in the category
Switching and Experimentation: Add/Drop Behavior Favors Descript
Direct switching within the competitive set remains relatively rare, indicating that companies are not frequently making clean, one-to-one replacements between platforms. Instead, what we see is a high level of add/drop activity, suggesting that customers are actively testing tools and adjusting their spend over time.
Within that dynamic, the signals increasingly favor Descript. Among customers using both Veed and Descript, companies have been nearly 2x more likely to drop Veed than Descript, pointing to stronger retention and stickiness for Descript when both tools are in use.
At the same time, expansion between the two platforms appears relatively balanced. We see 25 Veed-only customers have added Descript, which is similar to the number of Descript-only users adding Veed. This shows symmetrical expansion with both tools actively a part of the consideration set.
Overall, while direct switching remains limited, the combination of experimentation and retention patterns suggests that outcomes are increasingly breaking in Descript’s favor.
Exhibit 3: Cross-vendor switching behavior favors Descript over Veed
Early Signals of Market Consolidation in AI Video Editing
Across customer growth, monetization, and retention signals, the data consistently points in the same direction for AI video editing: Descript is extending its lead. Descript is not only adding customers at a faster rate, but also increasing spend per customer and demonstrating stronger stickiness in multi-vendor environments.
At the same time, Veed’s recent softness in both customer count and standalone usage, combined with Kapwing’s smaller scale, suggests that not all players are keeping pace as the category evolves.
The market is still early, but it is no longer evenly distributed. The gap between Descript and the rest of the field is already widening, and the switching and retention patterns suggest that trend is more likely to accelerate than reverse as teams move from experimentation toward standardization.
What other AI and software trends are emerging across your portfolio?
FAQ’s
-
AI video editing software enables users to create and edit video using machine learning features like transcription, text-based editing, automated captions, and AI-assisted enhancements — allowing non-technical users to produce polished content without traditional editing expertise.
-
Based on YipitData's analysis of 1,300+ mid-market companies, Descript leads the category on both customer growth (+37% YoY to ~120 customers as of January 2026) and monetization (~$3,000 average monthly spend per customer). Veed's customer count has declined modestly since mid-2025, and Kapwing remains a smaller player by both customer count and spend.
-
YipitData's spend data points to stronger product-market fit for Descript. Descript customers are spending more over time (2x per-customer spend growth in 2025) and are significantly less likely to be dropped when companies run multi-vendor evaluations. Among companies using both Descript and Veed, teams were nearly 2x more likely to drop Veed.
-
Within the mid-market, companies spend nearly $3,000 per month on average with Descript, according to YipitData's B2B spend panel. Veed and Kapwing customers typically spend under $1,000 per month, placing Descript significantly ahead on revenue per account.
-
Yes, multi-vendor usage is common, but YipitData's data suggests it's often temporary. Experimentation is high — 25 Veed-only customers added Descript over the observed period, a figure roughly symmetrical to Descript-only customers adding Veed. However, when teams ultimately consolidate, retention patterns currently favor Descript.
-
The insights in this analysis are derived from YipitData’s B2B spend data, which aggregates anonymized software spending data from companies that share ERP-sourced transaction data with YipitData or through enterprise data partnerships. The platform tracks spending and adoption trends across 1,300+ mid-market and enterprise companies for ~250,000 AI and software vendors.
