Codeium, an AI-powered coding startup, is elevating a brand new spherical of funding at a $2.85 billion valuation, together with contemporary capital, based on two sources with data of the deal.
The spherical is being led by returning investor Kleiner Perkins, the folks stated.
The brand new spherical comes simply six months after Silicon Valley-based Codeium introduced that it had closed a $150 million Collection C at a $1.25 billion post-money valuation led by Common Catalyst with participation of Kleiner Perkins and Greenoaks. TechCrunch couldn’t affirm 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 particular person stated. Primarily based on that income determine, Codeium’s implied valuation is roughly 70 instances ARR. That’s quite a bit larger than different AI code modifying firms.
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. Primarily based 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 lots of others.
Whereas it’s not clear how Codeuim negotiated such a wealthy valuation, sources instructed TechCrunch that the corporate wasn’t seeking to increase new funds earlier than traders approached it about this spherical.
Codeium tries to differentiate itself from rivals by concentrating on firms moderately than particular person builders. Final summer season, the corporate instructed TechCrunch that the free tier of its platform was being utilized by over 1,000 enterprise clients, together with Anduril, Zillow, and Dell.
In November, the corporate launched Windsurf Editor, which may write a number of the code with out human involvement, an method that’s generally known as agentic AI, or “agent mode.” Others, resembling Cursor, additionally provide the same characteristic.
Codeium was based in 2021 by Varun Mohan and his childhood pal 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, accountable for managing the autonomy infrastructure group.
