Codeium, an AI-powered coding assistant platform, has raised $150 million in a Series C funding round led by General Catalyst. The investment values the startup at $1.25 billion, catapulting it to unicorn status just three years after its launch.
The round, which included participation from existing investors Kleiner Perkins and Greenoaks, brings Codeium's total funding to $243 million. This significant capital injection comes despite the company not yet touching its $65 million Series B raised in January.
Founded in 2021 by MIT graduates Varun Mohan and Douglas Chen, Codeium has rapidly grown into a key player in the AI coding tools space, directly competing with GitHub Copilot. The company’s platform leverages generative AI models to provide coding suggestions within the context of an entire codebase, supporting around 70 programming languages and integrating with popular development environments like Microsoft Visual Studio and JetBrains.
A key differentiator for Codeium is its Cortex engine, an advanced AI-powered reasoning system that significantly enhances the platform’s ability to manage and solve complex coding tasks. Cortex increases retrieval recall by 200% compared to state-of-the-art embedding systems, and it operates 40 times faster and 1000 times cheaper than traditional third-party APIs.
This enables developers to handle large-scale code generation, reviews, and knowledge transfer with unprecedented efficiency, reducing tasks that once took hours to mere minutes. By integrating Cortex into its products, Codeium offers a tool that not only assists with basic coding tasks but also empowers developers to tackle more complex problems with greater speed and accuracy.
Not surprisingly, the startup has grown rapidly, boasting over 700,000 users and more than 1,000 enterprise customers, including Anduril, Zillow, and Dell. Codeium's revenue hit eight figures this year, with annual recurring revenue growing by over 500% since early 2024.
To address privacy concerns, Codeium offers a self-hosted installation option and claims to use strong encryption. Mohan emphasized, "We never train our proprietary generative autocomplete model on user data, never sell data and ensure all data transmission is encrypted."
Quentin Clark, Managing Director at General Catalyst, praised Codeium’s ability to deliver scalable solutions that meet the diverse needs of its enterprise clients. “Codeium’s tools are not just theoretical—they’re being adopted across entire organizations, proving their value in real-world environments,” he said.