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Coder Announces $35M in Series B2 Funding to Modernize the Enterprise Development Environment

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Coder, with the support of new investor Georgian, continues its journey to accelerate access to secure cloud development environments

AUSTIN, Texas, June 25, 2024-- Coder, the development platform that keeps developers in flow, today announced it has secured $35M in capital to broaden its open source footprint, evolvecloud development environments (CDEs), and expand globally. Georgian leads the round, joined by existing investors Uncork Capital, Notable Capital, and Redpoint Ventures. This brings Coder's total Series B funding to $65M. Russell Moore, Investor at Georgian, will join Coder's Board of Directors.

Enterprises increasingly recognize that CDEs are critical to the developer experience with the rise of remote work and organizations' need to easily customize, automate, and secure their workflows, data, and devices, making traditional development tools obsolete.

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."

"With nearly 30 million developers worldwide, it is crucial that every developer is equipped with the performance, scale, and security of the cloud," said Rob Whiteley, CEO at Coder. "Coder has great momentum with large enterprises and cloud-native organizations, and we believe there is an opportunity to grow from the No. 1 enterprise CDE to the No. 1 CDE overall, displacing incumbents like GitHub Codespaces. Georgian's focus on open source tooling, developers, and AI/ML makes them the perfect partner for Coder as we double down on CDEs. Coder is now capitalized to grow our world-class developer community, accelerate the delivery of our product roadmap, and expand our geographical presence. This funding begins the next chapter for Coder."

Founded in 2017, Coder simplifies and standardizes how developers access and deliver their code. Developers commonly use local environments on their laptops to write, build, and test their source code before shipping it to cloud services for integration and deployment. However, local development introduces several challenges including slow project onboarding times, conflicts between individual developer environments, and increased security risks. Coder addresses these challenges by centralizing development environments on enterprises' cloud or on-premises infrastructure, enabling companies to deliver a more consistent and efficient developer experience while bolstering governance and cost control. Unlike other developer platforms, Coder is uniquely positioned as a self-hosted, self-managed, and multi-cloud solution, mature enough to support the needs of even the most highly regulated, secure, and complex enterprises worldwide.

Today's generation of CDEs fail to deliver on several fundamental enterprise prerequisites, including low latency, high availability, and absolute control over where development environments are hosted. These shortcomings opened the door for Coder to redefine standards and drive the next generation of CDEs that are purpose-built to meet the demands of today's cloud-native enterprises.

"We believe that Coder has an exciting opportunity to build on its existing momentum and become a leader in the growing CDE market," said Russell Moore, Investor at Georgian. "Coder is a key pillar of its customers' developer infrastructure, and enables meaningful efficiency gains for its users. By developing a solution that is both self-hosted and technology-agnostic, Coder has created a product well-suited for large enterprises. In our view, the market is ripe to support accelerating adoption of CDEs, and we're looking forward to seeing Coder at the helm of this growing demand."

This latest investment will enable Coder to:

• Grow its open source foundation. With more than 80K GitHub stars across its open source projects, Coder will grow its existing open source community by building and acquiring additional open source projects and adding a new Developer Experience function to oversee and grow the more than 1.2M monthly active users in the Coder community.
• Accelerate CDE roadmap delivery. Coder will expand and execute its CDE product roadmap, ensuring they meet the demands of modern development workflows, particularly in a post-GenAI landscape where ephemeral workspaces and generative AI tools are increasingly essential.
• Expedite global expansion. Coder will expand its EMEA presence to support its existing customer base and the growing demand from large security and compliance-focused companies in highly regulated environments such as financial services, telecom, pharmaceuticals and retail. Coder anticipates hiring for its EMEA sales, marketing, support, and engineering teams.

To learn more about Georgian's investment in Coder, visit their blog here. For more information on Coder and what's next for the company, visit our blog or our website at www.coder.com.

​​Gartner, Hype Cycle for Emerging Technologies, 2023, By Arun Chandrasekaran, Melissa Davis, 2 August 2023

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and HYPE CYCLE is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About Coder

Coder's mission is to make developers 10x more productive. It's starting by rethinking software development and allowing developers to access centralized cloud development environments (CDE) from any browser. Its unique combination of simplicity and customizability gives developers the power to create, access, and collaborate on development environments from anywhere, without having to host and manage code locally. This streamlines developer workflows, saves time, and accelerates innovation. Coder open source is free and ideal for small teams of developers, while an optional annual subscription is ideal for DevOps and Platform Engineering teams needing additional security, observability, and governance capabilities that make it easier to run at scale in production environments. With Coder, developing software has never been easier. For more information, visit our website, get started on Github, follow us on LinkedIn, or join our Discord.

About Georgian

Georgian invests in high-growth B2B software companies and builds software to help those companies scale faster. We seek to identify and accelerate leading growth-stage software companies in our thesis areas of Applied AI, Conversational AI, Trust and Product-Led Purpose. Based in Toronto, Georgian's team brings together investors with machine learning professionals, software entrepreneurs and experienced operators. Founded in 2008, Georgian has US$5.6B AUM, as of December 31, 2023. Visit www.georgian.io for more information.

Contact:
Coder@pancomm.com

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