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AI coding startups are becoming a hotspot for VCs. Here are the 12 copilots that have landed funding from funds like a16z, Lightspeed, and Menlo Ventures.
AI coding startups are becoming a hotspot for VCs. Here are the 12 copilots that have landed funding from funds like a16z, Lightspeed, and Menlo Ventures.
Samantha StokesOct 14, 2024, 17:23 IST
<p class="ingestion featured-caption">Seek AI CEO Sarah Nagy; Zenlytic CEO and co-founder Ryan Janssen; and Mintlify co-founders Han Wang and Hahnbee LeeSeek AI, Zenlytic, Mintlify</p><ul class="summary-list"><li>VCs are investing in generative AI coding and copilot startups.</li><li>AI coding tools automate coding tasks, allowing developers to focus on creativity.</li></ul><p>The <a target="_blank" class href="https://www.businessinsider.com/ai-investments-vcs-startups-valuations-2024-3">AI revolution</a> shows no signs of slowing down, and some VCs are turning their attention to a new corner of the market: <a target="_blank" class href="https://www.businessinsider.com/ai-coding-tools-junior-software-developers-microsoft-github-copilot-chatgpt-2024-10">generative AI coding and copilot startups.</a></p><p>This tech, which automates parts of the coding process and offers real-time assistance to developers, aims to reduce the time and complexity involved in writing software. By upping productivity and eliminating repetitive tasks, AI copilots let developers focus on more creative and strategic aspects of programming.</p><p>"I'm really high on AI coding assistants," <a target="_blank" class href="https://www.businessinsider.com/menlo-ventures-partner-tim-tully-invests-in-generative-ai-startups-2024-10">Menlo Ventures partner Tim Tully</a> recently told Business Insider. "Opportunities in this space are pretty compelling."</p><p><a target="_blank" class href="https://www.businessinsider.com/kanu-gulati-transitioned-research-scientist-ai-investor-khosla-ventures-2024-9?utm_campaign=finance-sf&utm_source=facebook&utm_medium=social">Kanu Gulati</a>, a partner at Khosla Ventures, is also searching for AI copilots that could be a valuable investment. Last year, she <a target="_blank" class href="https://www.korbit.ai/post/korbit-closes-11-million-series-a">invested in Korbit,</a> an "AI mentor" that reviews code and teaches engineers how to fix problems.</p><p>According to PitchBook, US VC deal activity for generative AI coding tools has grown in the last year, from more than $420 million in all of 2023 to more than $780 million so far in 2024 (PitchBook's analysis includes deals through September 27).</p><p>The deal count was down during that same time period; however, 50 deals were done in this space during all of 2023, compared to 35 so far this year through September 2024.</p><p>Business Insider partnered with PitchBook to identify which AI coding and copilot startups have raised the most money so far from VCs like a16z, Lightspeed Venture Partners, solo capitalist <a target="_blank" class href="https://www.businessinsider.com/elad-gil-investors-ai-app-wave-coming-2024-2">Elad Gil,</a> and others. The startups are listed in descending order based on the size of their most recent funding round.</p>
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Poolside raised a $500 million Series B in October 2024.
Poolside co-founders Eiso Kant (left, CTO) Jason Warner (right, CEO)Poolside
Magic raised a $117 million Series B in February 2024. It announced $320 million in additional funding in August 2024.
Magic cofounders Eric Steinberger and Sebastian De Ro.Magic
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Augment raised a $227 million Series B in April 2024, which valued the startup at $997 million.
Augment is building AI coding assistance software for engineering teams. The startup emerged from stealth in April 2024 and announced its $227 million Series B funding round at a $977 million post-money valuation, which included investments from Sutter Hill Ventures, Index Ventures, Innovation Endeavors, Lightspeed Venture Partners, and Meritech Capital. The startup previously raised a $25 million Series A led by Sutter Hill Ventures.
Anysphere raised a $60 million Series A at a $400 million valuation in August 2024.
Anysphere, a startup founded in 2022 that is creating an AI code editor called Cursor, raised a $60 million Series A funding round at a $400 million post-money valuation, according to TechCrunch.
Business Insider first reported that Anysphere was raising a new funding round at a $400 million valuation from a16z. Thrive Capital co-led the round, and Stripe co-founder Patrick Collison also participated.
Previously, the startup raised an $8 million seed funding round in July 2023 that valued the company at $56.5 million, according to PitchBook. The round was led by OpenAI Startup Fund, with participation from BoxGroup, former GitHub CEO Nat Friedman, and Dropbox cofounder Arash Ferdowsi.
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Mintlify raised an $18 million Series A in August 2024 led by Andreessen Horowitz.
Mintlify co-founders Han Wang and Hahnbee LeeMintlify
Zenlytic raised a $9 million Series A funding round in October 2024.
Ryan Janssen, CEO and Co-founder of ZenlyticZenlytic
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Seek AI raised a $9 million seed round in 2023.
Headshot of Sarah Nagy, CEO of Seek AISeek AI
Espresso AI raised a $9 million seed funding round in November 2023.
Espresso AI co-founders Ben Lerner, Alex Kouzemtchenko, and Juri GanitkevitchEspresso AI
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Dosu raised an $8 million seed funding round in June 2024.
Dosu founder Devin SteinDosu
Blitzy raised $4.4 million in September 2024.
Blitzy cofounders Brian Elliott and Sid PardeshiBlitzy
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Granola raised a $4.25 million seed funding round in May 2023.
Granola co-founders Chris Pedregal and Sam StephensonGranola
Ellipsis raised a $2 million seed round in April 2024 as part of Y Combinator's W24 batch.
Nick Bradford and Hunter Brooks, Ellipsis co-foundersEllipsis