Codeium's Bold Move: Securing Nearly $3B Valuation in Latest Funding Round

Codeium, an AI-powered coding startup, is currently in the process of raising a new funding round that values the company at $2.85 billion. This funding round is being led by Kleiner Perkins, a returning investor.

Just six months ago, Codeium announced a successful $150 million Series C round at a post-money valuation of $1.25 billion, led by General Catalyst with participation from Kleiner Perkins and Greenoaks. The recent funding details remain unconfirmed by TechCrunch.

The startup reports achieving approximately $40 million in annualized recurring revenue (ARR), which translates to an impressive 70 times ARR valuation—significantly higher than its competitors in the AI code editing space. For context, Anysphere, the maker of AI-powered coding assistant Cursor, recently raised funds at a $2.5 billion valuation based on a 25 times ARR valuation multiple, given its reported $100 million in revenue.

Codeium competes with notable players like Poolside, Magic, Microsoft’s GitHub Copilot, and others, while aiming to distinguish itself by targeting enterprise customers rather than individual developers. Last summer, the company claimed over 1,000 enterprise customers, including Anduril, Zillow, and Dell, were utilizing its free tier.

In November, Codeium launched the Windsurf Editor, a feature capable of writing code autonomously, known as agentic AI or “agent mode.” This innovative approach is being mirrored by competitors like Cursor.

Founded in 2021 by Varun Mohan and Douglas Chen, both MIT graduates, Codeium aims to leverage their backgrounds in tech to push the boundaries of AI coding tools. Mohan previously led a team at Nuro, while Chen contributed to software tools for Meta’s Oculus Quest VR headsets.