Codeium, an AI-powered coding startup, is raising a new round of funding at a $2.85 billion valuation, including fresh capital, according to two sources with knowledge of the deal.
The round is being led by returning investor Kleiner Perkins, the people said.
The new round comes just six months after Silicon Valley-based Codeium announced that it had closed a $150 million Series C at a $1.25 billion post-money valuation led by General Catalyst with participation of Kleiner Perkins and Greenoaks. TechCrunch could not confirm the dollar amount of the new funding.
Codeium and Kleiner Perkins didn’t respond to a request for comment.
The company has reached about $40 million in annualized recurring revenue (ARR), one person said. Based on that revenue figure, Codeium’s implied valuation is roughly 70 times ARR. That’s a lot higher than other AI code editing companies.
Last month, Anysphere, the maker of AI-powered coding assistant Cursor, announced a new funding round of financing at a $2.5 billion valuation. Based on its reported $100 million in revenue, investors assigned it a 25 times ARR valuation multiple.
In addition to Anysphere, which many investors say is the current leader in the category, Codeium competes with Poolside, Magic, Microsoft’s GitHub Copilot, and many others.
While it’s not clear how Codeuim negotiated such a rich valuation, sources told TechCrunch that the company wasn’t looking to raise new funds before investors approached it about this round.
Codeium tries to distinguish itself from competitors by targeting companies rather than individual developers. Last summer, the company told TechCrunch that the free tier of its platform was being used by over 1,000 enterprise customers, including Anduril, Zillow, and Dell.
In November, the company introduced Windsurf Editor, which can write some of the code without human involvement, an approach that’s known as agentic AI, or “agent mode.” Others, such as Cursor, also offer a similar feature.
Codeium was founded in 2021 by Varun Mohan and his childhood friend and fellow MIT grad, Douglas Chen. Prior to Codeium, Chen was at Meta, where he helped build software tools for VR headsets like the Oculus Quest. Mohan was a tech lead at Nuro, the autonomous delivery startup, responsible for managing the autonomy infrastructure team.