Codeium, an AI-powered coding startup, is elevating a brand new spherical of funding at a $2.85 billion valuation, together with recent capital, in response to two sources with information of the deal.
The spherical is being led by returning investor Kleiner Perkins, the individuals mentioned.
The brand new spherical comes simply six months after Silicon Valley-based Codeium introduced that it had closed a $150 million Sequence C at a $1.25 billion post-money valuation led by Common Catalyst with participation of Kleiner Perkins and Greenoaks. TechCrunch couldn’t verify the greenback quantity of the brand new funding.
Codeium and Kleiner Perkins didn’t reply to a request for remark.
The corporate has reached about $40 million in annualized recurring income (ARR), one individual mentioned. Based mostly on that income determine, Codeium’s implied valuation is roughly 70 instances ARR. That’s loads increased than different AI code modifying corporations.
Final month, Anysphere, the maker of AI-powered coding assistant Cursor, introduced a brand new funding spherical of financing at a $2.5 billion valuation. Based mostly on its reported $100 million in income, traders assigned it a 25 instances ARR valuation a number of.
Along with Anysphere, which many traders say is the present chief within the class, Codeium competes with Poolside, Magic, Microsoft’s GitHub Copilot, and many others.
Whereas it’s not clear how Codeuim negotiated such a wealthy valuation, sources instructed TechCrunch that the corporate wasn’t trying to increase new funds earlier than traders approached it about this spherical.
Codeium tries to tell apart itself from rivals by focusing on corporations slightly than particular person builders. Final summer time, the corporate instructed TechCrunch that the free tier of its platform was being utilized by over 1,000 enterprise prospects, together with Anduril, Zillow, and Dell.
In November, the corporate launched Windsurf Editor, which might write a number of the code with out human involvement, an method that’s often known as agentic AI, or “agent mode.” Others, similar to Cursor, additionally provide an identical function.
Codeium was based in 2021 by Varun Mohan and his childhood buddy and fellow MIT grad, Douglas Chen. Previous to Codeium, Chen was at Meta, the place he helped construct software program instruments for VR headsets just like the Oculus Quest. Mohan was a tech lead at Nuro, the autonomous supply startup, chargeable for managing the autonomy infrastructure group.
