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.
- VCs are investing in generative AI coding and copilot startups.
- AI coding tools automate coding tasks, allowing developers to focus on creativity.
The AI revolution shows no signs of slowing down, and some VCs are turning their attention to a new corner of the market: generative AI coding and copilot startups.
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.
"I'm really high on AI coding assistants," Menlo Ventures partner Tim Tully recently told Business Insider. "Opportunities in this space are pretty compelling."
Kanu Gulati, a partner at Khosla Ventures, is also searching for AI copilots that could be a valuable investment. Last year, she invested in Korbit, an "AI mentor" that reviews code and teaches engineers how to fix problems.
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).
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.
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 Elad Gil, and others. The startups are listed in descending order based on the size of their most recent funding round.
Poolside raised a $500 million Series B in October 2024.
Founded in 2023, the San Francisco-based startup is building its own foundation models, API, and coding assistants to bring generative AI to software developers. Poolside has so far raised $626 million in VC funding, and its notable investors are Bain Capital Ventures, DST Global, Felicis Ventures, and Redpoint Ventures.
Magic raised a $117 million Series B in February 2024. It announced $320 million in additional funding in August 2024.
Magic uses generative AI to create code and automate software development tasks. Founded in 2022, the San Francisco-based startup raised a $117 Series B in February 2024, led by Nat Friedman and Daniel Gross's NFDG Ventures. CapitalG and Elad Gil also participated.
In August, Magic said it raised an additional $320 million from a spate of investors, including Eric Schmidt, Jane Street, Sequoia, and Atlassian, as well as Friedman, Gross, Gil, and CapitalG. This brought the startup's total funding to $515 million.
Mintlify raised an $18 million Series A in August 2024 led by Andreessen Horowitz.
Founded in 2022, Mintlify uses AI to automate software documentation. Based in San Francisco, the startup was a member of Y Combinator's W22 batch, and it's raised $21 million so far in VC funding. In addition to a16z and Y Combinator, BCV is also an investor.
Zenlytic raised a $9 million Series A funding round in October 2024.
New York-based Zenlytic is a business intelligence platform that considers generative AI to be a "co-worker" — rather than a copilot — that is capable of analyzing data and answering complex questions. The startup has raised $15 million total in VC funding since it was founded in 2020, and its investors include Bain Capital Ventures, M13 Ventures, Correlation Ventures, and Primary Ventures.
Seek AI raised a $9 million seed round in 2023.
Founded in 2021, New York-based Seek AI is building a platform for people to build code by using natural, everyday language. The startup raised a $9 million seed round in 2023, and it's disclosed $10.5 million in VC funding from investors Battery Ventures and Conviction Partners.
Espresso AI raised a $9 million seed funding round in November 2023.
Brooklyn-based Espresso AI is tackling the rising expenses associated with cloud computing. Its generative AI analyzes queries and optimizes them to save time and money.
Founded in 2023, the startup has raised $11 million in VC funding, the most recent being its $9 million seed round in November 2023. Espresso's notable investors include Nat Friedman, Daniel Gross, and FirstMark Capital's Matt Turck.
Dosu raised an $8 million seed funding round in June 2024.
Dosu is an AI teammate that that cleans up code and manages tedious tasks so developers can focus on work that adds value. Founded in 2023, the San Francisco-based startup has raised $9.5 million total in VC funding, and its $8 million seed round was led by Innovation Endeavors's Davis Treybig.
Blitzy raised $4.4 million in September 2024.
Based in Boston and founded by a former Nvidia engineer, Blitzy builds AI copilots to automate coding. The startup, which was spun out of the Harvard Innovation Lab, was funded by Link Ventures, Bessemer, Flybridge, NFX, Picus, and Asymmetric.
Granola raised a $4.25 million seed funding round in May 2023.
Based in London, Granola is a productivity tool that combines AI-generated transcripts with a person's notes to create better meeting notes with generative AI.
As the startup grows, Lightspeed Venture Partners, which led Granola's seed funding round, explained that the tech will combine AI, code editing, and knowledge work to increase productivity in the workplace. Granola's other investors include Betaworks, Mike Krieger, and Nat Friedman.
Ellipsis raised a $2 million seed round in April 2024 as part of Y Combinator's W24 batch.
A member of Y Combinator's W24 batch, Ellipsis automatically reviews code, catches errors, and can enforce a team's style guide. The startup was founded in 2023 and is based in New York. Dalton Caldwell led Y Combinator's investment in Ellipsis, and its additional investors are Twenty Two Ventures and Transpose Platform.
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