For context, rival Anysphere recently raised funds at a $2.5 billion valuation, which corresponds to a 25 times ARR multiple based on $100 million in revenue.

Despite facing stiff competition from major players such as Anysphere, Poolside, and Microsoft’s GitHub Copilot, Codeium's impressive valuation reflects strong investor confidence in its business model.

Founded in 2021 by Varun Mohan and Douglas Chen, both of whom have extensive tech industry backgrounds, Codeium benefits from the founders' previous experiences at Nuro and Meta.

AI coding startup Codeium is in the process of raising a new funding round, which will elevate its valuation to $2.85 billion, with Kleiner Perkins leading the investment.

The company distinguishes itself by focusing on enterprise customers, boasting over 1,000 businesses, including notable names like Anduril, Zillow, and Dell, that utilize its free-tier services.

Codeium has achieved approximately $40 million in annualized recurring revenue (ARR), resulting in a valuation multiple that significantly surpasses its competitors, estimated at 70 times ARR.

This upcoming funding round follows a successful $150 million Series C completed just six months ago, which valued Codeium at $1.25 billion post-money.

In November 2024, Codeium launched the Windsurf Editor, a tool that features agentic AI capabilities designed to automate code generation with minimal human intervention.

The current funding round is being spearheaded by returning investor Kleiner Perkins, continuing their support following the Series C funding announced in August 2024.