Codeium, an AI-powered coding startup, is raising new funding at a $2.85 billion valuation, including Fresh Capital, according to two sources with knowledge of the transaction.
The round is led by returning investor Kleiner Perkins, people said.
The new round announces that Silicon Valley-based Codeum has closed its $150 million Series C with a post-money valuation of $1.25 billion led by Total Catalyst with participation from Kleiner Perkins and Green Ark It's only six months later. TechCrunch was unable to confirm the dollar amount for the new funds.
Codeium and Kleiner Perkins did not respond to requests for comment.
The company has reached approximately $40 million in annual recurring revenue (ARR), one said. Based on its revenue figures, Codeium's implicit rating is about 70 times. This is much higher than other AI code editing companies.
Last month, Anysphere, the maker of AI-powered coding assistant cursors, announced a new funding round at a $2.5 billion valuation. Based on reported $100 million revenue, investors allocated it a 25x approval multiple.
In addition to Anysphere, which many investors say is the current leader in the category, Codeium is competing with Poolside, Magic, and Microsoft's Github Copilot.
It is not clear how Coduim negotiated such a rich rating, but sources told TechCrunch that they were not trying to raise new funds before investors approached the round.
Codeium tries to distinguish it from its competitors by targeting companies rather than individual developers. Last summer, the company told TechCrunch that more than 1,000 enterprise customers, including Anduril, Zillow and Dell, are using the free tier of the platform.
In November, the company introduced Windsurf editors. WindsurfEditor can write parts of code, an approach known as agent AI, or “agent mode” without human involvement. Others such as cursors provide similar functionality.
Codeum was founded in 2021 by Varun Mohan and his childhood friend and fellow MIT alumnus Douglas Chen. Before Codeium, Chen was in Meta and helped build software tools for VR headsets like the Oculus Quest. Mohan is the technical lead at Nuro, an autonomous delivery startup, and is responsible for managing the autonomous infrastructure team.