Supporting Coder's Mission From Series A to Today

By Glenn Solomon and Oren Yunger

At Notable Capital, we are driven by a passion for innovation and transformative potential. Coder, with its mission to increase developer efficiency, aligns perfectly with our investment values and vision for the future of technology. In a world where software development is the backbone of virtually every industry, enhancing developer productivity is paramount. Coder’s solution gives developers the power to create, access, and collaborate on development environments from anywhere, without having to host and manage code locally. Coder’s mission goes well beyond enhancing developer output however; companies using Coder see huge gains in governance and control of code and the use of Gen AI as well. Today we are excited to announce Coder’s new $35M financing to enable the company to continue its rapid growth. At Notable, we’re proud to be participating in this new financing round, along with additional existing investors Redpoint Ventures and Uncork Capital, as well as with new investor Georgian Partners, who is leading the round. 

Belief in the Team

At the heart of Coder’s success is a remarkable team. Co-founders Ammar Bandukwala and Kyle Carberry have demonstrated exceptional foresight and technical acumen, learning early the value of removing any “panes of glass between customers and engineers” as Ammar says. Since the beginning Ammar and Kyle have laid a strong foundation of innovation, transparency, and urgency for their customers. They have developed a product that truly revolutionizes the cloud development environment (CDE) space.

Just over a year ago, we helped recruit Rob Whiteley as CEO. With a background as GM and CMO of NGINX (which was acquired by F5 Networks) and a former industry analyst at Forrester, Rob brings a wealth of GTM experience and a unique perspective. Since joining in May 2023, Rob has accelerated Coder’s growth, focusing on go-to-market strategies and building a robust leadership team.

Josh Epstein joined as Chief Revenue Officer more recently, bringing his expertise from Vendia and HashiCorp. We have known Josh for a long time and his deep industry knowledge and his ability to build and lead high-performing teams are already visible in scaling Coder’s ARR and expanding revenue engine globally. 

The company also added seasoned finance and marketing executives, Inna Morgounova and Katherine Bagood, as VP of Finance and Operations and Head of Marketing, respectively. 

Great Market: Enhancing Developer Efficiency

Coder solves the developer productivity dilemma by providing developers with a secure, structured environment, enabling them to control and govern the use of Gen AI tools. As Rob often says, “Developers come for the speed and their companies stay for the ROI.” 

Coder is trusted by large development teams, with many seeing a productivity boost of 5% to 25%. For example,  a large financial services customer that has 7,000 developers who were spending just 10% of their time coding. By leveraging Coder, the company improved developer coding dramatically, yielding more than a 200% ROI in labor savings.

Gartner Group predicts that by 2026, 60% of cloud workloads will be built and deployed using CDEs, highlighting the critical role Coder plays in the industry.

In this new episode of “Founder Real Talk,” listen to Rob, Ammar, Kyle reflect on product market fit and Coder’s momentum.

Great Technology: Open Source Foundation

Coder’s foundational products have always started with open source, and the company has built very popular open source products - both from their initial open source project, “code-server” and more recently with their “v2” version of Coder open source. Since 2019, these projects have grown to over 80K stars on Github. Along with open source success, growth at Coder’s commercial customers has also been remarkable. The company continues to innovate as well. The platform will soon measure developer efficiency across any laptop, virtual machine, or cloud environment, providing insights for optimization and deeper enterprise adoption.

Developer Love to Enterprise Contracts

Coder has been able to translate the trust of their developer community into paying customers.  Coder has earned the trust of prestigious customers who manage a staggering $22.8 trillion in wealth and serve 1.6 trillion SaaS users. Coder counts approximately 70 customers to date, including Skydio, Palantir, Dropbox, Discord and more. F500 enterprise customers are turning to Coder for improved developer experience & retention rates, centralized development environment, and operational efficiency.

We are long term believers in the Coder opportunity to make a huge impact on computing, helping enterprises adopt and govern the usage of Gen AI and helping unleash the full capabilities of developers.

More on Coder story: https://podcasts.apple.com/us/podcast/unlocking-developer-productivity-the-coder-journey/id1392649094?i=1000660182381