AI-coding startup Codeium in talks to raise at an almost $3B valuation, sources say

Codeium, an AI-driven coding startup, is raising a new funding round at a valuation of $2.85 billion, including new capital, according to two sources familiar with the deal.

Kleiner Perkins, a returning investor, is leading this round, sources confirmed.

This funding round follows just six months after Codeium, based in Silicon Valley, closed a $150 million Series C at a $1.25 billion post-money valuation, led by General Catalyst, with participation from Kleiner Perkins and Greenoaks. TechCrunch could not verify the exact amount of the current funding.

Neither Codeium nor Kleiner Perkins responded to requests for comment.

The company’s annual recurring revenue (ARR) is estimated to be around $40 million, according to one source. At that revenue level, Codeium’s implied valuation is roughly 70 times ARR—substantially higher than other AI code editing companies.

For comparison, Anysphere, the maker of the AI-powered coding assistant Cursor, announced a new funding round last month at a $2.5 billion valuation. With $100 million in revenue, it received a 25x ARR multiple from investors.

In addition to Anysphere, which many investors regard as the current leader in the space, Codeium competes with companies like Poolside, Magic, GitHub Copilot from Microsoft, and others.

Though the specifics of Codeium’s high valuation are unclear, sources told TechCrunch that the company wasn’t actively seeking new funding when investors approached them for this round.

Codeium differentiates itself from competitors by targeting businesses rather than individual developers. Last summer, the company revealed that over 1,000 enterprise clients, including Anduril, Zillow, and Dell, were using its free platform tier.

In November, the company launched Windsurf Editor, an AI tool capable of writing code autonomously, a feature known as agentic AI or “agent mode.” A similar feature is also offered by Cursor.

Founded in 2021 by Varun Mohan and his childhood friend and MIT grad Douglas Chen, Codeium has an experienced team. Before founding Codeium, Chen worked at Meta, developing software for VR headsets like the Oculus Quest, while Mohan led the autonomy infrastructure team at Nuro, an autonomous delivery startup.