Summary:
StackBlitz Inc. is negotiating a $700 million valuation for its AI-driven tool Bolt.new.
The startup is set to raise $83.5 million led by Emergence Capital and GV.
Bolt.new allows users to create web applications using verbal commands, attracting nearly 1 million users monthly.
CEO Eric Simons described the product launch as an overnight success seven years in the making.
The tool is reportedly growing faster than Zoom and Salesforce according to investors.
StackBlitz Secures $700 Million Valuation
StackBlitz Inc., the innovative creator behind the developer tool Bolt.new, is currently in discussions to secure funding from investors, targeting a $700 million valuation. This comes as part of the growing trend of artificial intelligence startups revolutionizing the coding landscape.
Funding Details
The company is set to raise $83.5 million in a funding round led by Emergence Capital and GV (formerly Google Ventures). Other notable investors include Madrona Venture Group, Conviction, and Mantis. Previously, StackBlitz raised $22 million in a Series A round, which had not been widely reported.
The Rise of Bolt.new
Founded in 2017, StackBlitz initially struggled to carve out its niche in the competitive web development software market. However, the launch of Bolt.new in October marked a significant turning point. This AI-driven platform enables users to build websites using verbal commands, attracting nearly 1 million users monthly and generating tens of millions in annual recurring revenue.
CEO Eric Simons noted, “Five months ago we were on the verge of spinning down the company.” He referred to the launch of Bolt.new as an “overnight success seven years in the making.” The tool's success lies in its accessibility, allowing even those with limited technical skills to create web applications.
Competitive Landscape
Simons stated that Bolt.new competes with Replit Inc., another developer technology business. Joe Floyd, general partner at Emergence Capital, expressed enthusiasm about the startup's rapid revenue growth, stating, “It’s growing faster than Zoom, Salesforce, or any of our prior investments.”
Investor Insights
GV's Erik Nordlander highlighted that StackBlitz's software development approach makes app creation more accessible, noting, “There is no faster way to build an app than with their flagship product.”
Other investors in StackBlitz include Flex Capital, Greylock Partners, and Tribe Capital, as per PitchBook data.
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