Coder Raises $35M to Accelerate the Cloud Development Environment Market with Extended Open Source, Enhanced CDE Capabilities, and Expanded Global Reach

author avatar
Rob Whiteley
 on June 25th, 2024
5 min read

I am thrilled to announce Coder raised $35 million in fresh capital, bringing our Series B total to $65M. This marks a significant step forward in our mission to make developers 10x more productive, and underscores our commitment to empowering the global developer community. I’m extremely proud of the Coder team for hitting this huge milestone.

Transforming How Developers Stay in the Flow

Today’s development environments are evolving rapidly. Developers traditionally built, shipped, and ran their code in the cloud, yet relied on their local machines to write that code. That’s changing. The need for the automation and elasticity of the cloud, specialized resources like GPUs, and proximity to large data sets is shifting developers to write code natively in the cloud. How? With a set of kludgy cloud IDEs or homegrown workspace infrastructure. It doesn’t scale, and it’s not secure. This is where cloud development environments (CDE) – and Coder in particular – come in.

Why? Consider these impressive results published just last week by Skai:

Skai is not alone.

In its latest Hype Cycle™, Gartner® projects that CDEs will offer high value and reach mainstream adoption in five to 10 years, predicting that “by 2026, 60% of cloud workloads will be built and deployed using CDEs.”

CDEs enable developers to write code directly in the cloud—whether on-premises, private, or public. This shift leverages the power, security, and scalability of the cloud to enhance developer productivity.

The market is evolving. There’s already a first generation of CDEs that fail to deliver on several fundamental enterprise prerequisites, including low latency, high availability, and absolute control over where development environments are hosted. CDEs should be the center of developer experience, enhancing productivity and security. The shortcomings of the “OG” CDEs are opening the door for Coder to redefine the standards and drive the next generation of CDEs. Ones that are purpose-built to meet the demands of today’s cloud-native enterprises.

But we can do more. We can do better. That’s why we raised another $35M. Coder is doubling down on CDEs to take the next step in our mission of making developers 10x more productive. Our goal has always been to keep developers in flow.

Accelerating Our Strategy by Adding Georgian to the Mix

To accelerate our strategy, we partnered with Georgian, a venture capital firm with deep expertise in developer tooling, open source, and generative AI. Georgian led our Series B2 round, with additional contributions from existing investors Notable, Redpoint, and Uncork. Georgian’s Russel Moore will join our Board of Directors, bringing valuable insights and experience from other Georgian portfolio companies like Island and Dagster.

We’re honored to have Georgian on the team and will put the new capital to work immediately to accelerate our journey, starting with more investment in open source, extensibility, and global reach.

Extending Our OSS Foundation with a Dedicated Developer Experience Team

Developers are the backbone of digital businesses. They create future services that attract, retain, and support customers. With more than 80K GitHub stars across all of our open-source projects, Coder has built a thriving developer community. We will invest more to make it even better, adding resources to support adoption and contributions to our open-source projects. Core to this is a new Developer Experience function dedicated to overseeing and growing our community, which already includes over 1.2 million monthly active users. I’m looking forward to seeing how our community continues to make Coder an integral part of the modern developer stack.

Enhancing the Capabilities of a CDE with Better Insights and GenAI Support

We believe Coder makes the best enterprise CDE. But as discussed, this market is evolving rapidly. It’s not enough to simply provide a faster, more secure development environment in any cloud. That’s table stakes. We are investing in new developer insights capabilities to help both Developers and Platform teams create more efficient development environments. And stay tuned for an exciting evolution of our ephemeral workspaces that will make it easier for developers to spin up and manage multiple GenAI-powered workspaces. These are only two of many core areas we’re investing in to reimagine what a CDE looks like. Stay tuned to the Coder roadmap to learn more.

Expanding Our Global Reach, Starting with Europe

Over the past year, we have listened and learned from our customers. Europe has a unique set of security, compliance, and data sovereignty requirements that Coder solves. Currently, more than 25% of our demand comes from European enterprises. To capitalize on this demand and better serve our current customers in Europe, Coder will expand its operations in 2025. We will establish a European point of presence to accelerate the hiring of local staff across our support, engineering, sales, and marketing teams.

Thank You — And Join Us!

As we embark on this next chapter, I want to extend my heartfelt thanks to our investors, employees, partners, and most importantly, our developer community. Your support and dedication inspire us every day to push the boundaries of what’s possible in cloud development.

Are you inspired? If so, join us! We’ll be hiring rapidly over the next 12 to 18 months. We’d love to have you develop, support, or bring to market the next great idea in developer productivity.

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