Exclusive: AI-coding startup Codeium in talks to raise at an almost $3B valuation, sources say
Feb 20, 2025 - techcrunch.com
Codeium, an AI-powered coding startup, is reportedly raising a new funding round at a $2.85 billion valuation, led by returning investor Kleiner Perkins. This comes just six months after closing a $150 million Series C round at a $1.25 billion valuation. The company has achieved approximately $40 million in annualized recurring revenue, implying a valuation of about 95 times ARR, significantly higher than other AI code editing companies like Anysphere, which has a 25 times ARR valuation. Codeium distinguishes itself by targeting enterprise customers rather than individual developers and has over 1,000 enterprise users, including Anduril, Zillow, and Dell.
Founded in 2021 by Varun Mohan and Douglas Chen, Codeium competes with companies like Anysphere, Poolside, Magic, and Microsoft’s GitHub Copilot. The company recently introduced Windsurf Editor, an agentic AI feature that can write code without human involvement. Despite not actively seeking new funds, investors approached Codeium for this round, highlighting its strong market position and growth potential.
Key takeaways:
Codeium is raising a new round of funding at a $2.85 billion valuation, led by returning investor Kleiner Perkins.
The company has reached about $40 million in annualized recurring revenue (ARR), implying a valuation roughly 95 times ARR.
Codeium distinguishes itself by targeting companies rather than individual developers and has over 1,000 enterprise customers using its free tier.
Codeium was founded in 2021 by Varun Mohan and Douglas Chen, both MIT graduates with backgrounds at Nuro and Meta, respectively.
