Coder Secures New Funding to Move Dev Environments to the Cloud

Developers often rely on local environments, such as their laptops, to write, build, and test code before shipping it to a cloud service for integration and deployment. While this approach is common, it can introduce challenges like conflicts between dev environments and, in the worst-case scenario, security exploits.

Cloud development environments (CDEs) have gained popularity in recent years as a solution to these issues. According to Gartner, by 2026, 60% of cloud workloads will be built and deployed using CDEs.

Coder, a vendor that provides preconfigured, cloud-based development environments for enterprise use cases, has announced that it has closed a $35 million funding round, an extension to its Series B. The funding round was led by Georgian, with participation from Uncork Capital, Notable Capital, and Redpoint Ventures.

Coder's co-founders, Ammar Bandukwala, Kyle Carberry, and John Andrew Entwistle, met online while in high school and created an open-source tool to develop software remotely via a browser, leveraging Microsoft's Visual Studio Code IDE.

"For Coder, the broader slowdown in tech has been an accelerant," said Rob Whiteley, Coder's CEO. "Companies have been forced to look inward with a 'do more with less' mantra, seeking to understand how to retain their best talent and operate more efficiently without sacrificing velocity and security."

Coder offers free, open-source software for platform and dev teams to migrate dev environments and source code from local machines to cloud infrastructure. The software is self-hosted and self-managed, working across multiple clouds, and delivering capabilities such as role-based access controls and end-to-end encryption.

Coder generates revenue by charging for Coder Workspace, a fully managed version of its open-source software with additional governance and user management features.

"Platform teams have complete control over where Coder is hosted and the services that Coder uses," Whiteley said. "By centralizing previously decentralized development environments, enterprises maintain better control and governance over their source code and IP."

The sales pitch appears to be resonating, with Coder's open-source software having around 1.2 million monthly active users. Dropbox, Discord, and Skydio are among the company's paying customers, as well as four unnamed U.S. intelligence agencies. Revenue doubled last year, and Whiteley expects it to double again in 2024, as Coder expands its client footprint in Europe, the Middle East, and Africa.

With nearly $80 million in the bank and a workforce of just over 50 people, the Austin, Texas-based company plans to grow globally, invest in its open-source tooling with a dedicated developer relations team, and expand its sales, marketing, support, and engineering organizations.

AndroGuider Team

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