Codeium’s New Series C Pushes Valuation to $1.25 Billion

Codeium, a startup offering AI-powered software development tools, has raised $150 million in Series C funding, bringing the company’s valuation to $1.25 billion and securing its unicorn status in less than two years.

The new funding round was led by General Catalyst, with continued support from Kleiner Perkins and Greenoaks. With the completion of this round, the company’s total funding now stands at $243 million.

Codeium provides AI-powered software development tools designed to enhance developer productivity. The company’s proprietary code-focused large language models (LLMs) support over 70 programming languages and integrate with more than 40 integrated development environments (IDEs), including Visual Studio Code, JetBrains, Eclipse, and Jupyter Notebooks.

Codeium’s specific products include Cortex, an AI-powered tool that assists developers with complex coding tasks. Cortex uses artificial intelligence to reason through and solve intricate programming challenges, making the coding process more efficient and accurate. Another product, Forge, aids in code reviews, a process in which developers check each other’s work for errors or improvements. Forge leverages AI to speed up this process, reducing time while improving the overall quality of reviews. These products are widely used by enterprise clients such as Zillow, Dell, and Anduril, with over 700,000 developers actively utilizing the platform.

According to Codeium, the company is on track to generate eight figures in annual recurring revenue (ARR) by mid-2024, having grown over 500% in the first half of 2024 alone. Codeium was founded in 2022 by CEO Varun Mohan and is headquartered in San Francisco.

“The future of coding isn’t just about writing lines of code faster—it’s about enabling developers to think bigger, push boundaries, and achieve the extraordinary,” said Mr. Mohan. “This fresh funding means we’re better equipped to help developers turn those ‘what ifs’ into ‘what’s next,’ giving them the freedom to innovate without limits and turn challenges into opportunities for growth.”

The latest funding will be used to expand the platform’s capabilities, particularly by accelerating the development of new features and products. Additionally, Codeium plans to increase its headcount and invest in research and development, with a focus on partnering with its enterprise customers to refine AI strategies.

While AI tools for coding are becoming more prevalent, not all have lived up to their potential. Many platforms have struggled to integrate effectively into existing development environments or provide reliable results in high-stakes production scenarios. Codeium has set itself apart by focusing on the reliability and usability of its tools, ensuring its AI-enhanced platform delivers tangible value in real-world settings. The company’s ability to meet enterprise client needs, coupled with its rapidly growing user base, has positioned it as a formidable competitor in the AI coding space.

“Codeium isn’t just an idea—it’s a fully scaling business with widespread enterprise adoption. Their GenAI tools for software development are proving their worth in real production environments, where reliability is key,” said Quentin Clark, a managing director at General Catalyst. “As we see it, Codeium’s customer-driven approach has led to solutions that work in any environment, IDE, or SCM, with broader language support than anyone else.”

General Catalyst focuses on investments in early- and growth-stage technology companies. Its investment criteria typically include a preference for companies with scalable business models and high-growth potential in sectors such as software, AI, and consumer internet. The firm’s most recent fund, General Catalyst XI LP, closed in 2023 with $4.6 billion in commitments. General Catalyst was founded in 2000 and is headquartered near Boston in Cambridge, Massachusetts.

Kleiner Perkins invests seed to growth capital in technology and life sciences companies that operate in the consumer tech, enterprise software, digital health, and sustainability sectors. The Menlo Park-headquartered firm was founded in 1972 by Eugene Kleiner and Tom Perkins and has backed numerous high-profile startups such as Google, Amazon, and Genentech.

Greenoaks focuses on both early- and late-stage investments across industries such as consumer internet, software, and financial technology. The firm’s most recent fund, Greenoaks Capital Partners Fund V LP, closed in 2021 with $1 billion in commitments. Greenoaks was founded in 2012 by Neil Mehta and is headquartered in San Francisco.