According to the persons, Kleiner Perkins, a returning investor, is leading the round.
A request for comment was not answered by Codeium or Kleiner Perkins.
The company’s annualized recurring revenue (ARR) has surpassed $40 million. The implied valuation of Codeium is around 70 times ARR based on that revenue number. Compared to other AI code editing companies, that is significantly higher.
Anysphere, the company behind Cursor, an AI-powered coding helper, received a new round of funding last month, valued at $2.5 billion. Investors gave it a 25 times ARR valuation multiple based on its reported $100 million in revenue.
Other competitors of Codeium include Magic, Poolside, Microsoft’s GitHub Copilot, and Anysphere, which many investors claim is the industry leader at the moment.
Although it’s unclear how Codeuim was able to negotiate such a high price. The firm wasn’t seeking to acquire additional capital.
The business unveiled Windsurf Editor in November, which uses a technique called agentic AI, or “agent mode,” to develop some code without the need for human intervention. A comparable feature is also provided by others, like Cursor.
Varun Mohan and Douglas Chen, a fellow MIT graduate and boyhood friend, launched Codeium in 2021. Chen worked at Meta before joining Codeium, where he contributed to the development of software tools for virtual reality headsets such as the Oculus Quest. At Nuro, the autonomous delivery firm, Mohan oversaw the autonomy infrastructure team as a tech lead.