AI coding startup Vercel notches US$9.3 billion valuation in latest funding round led by GIC
[SAN FRANCISCO] AI startup Vercel raised US$300 million in a new funding round led by Accel and Singapore’s sovereign wealth fund GIC, attracting a valuation of US$9.3 billion.
New investors BlackRock, StepStone, Khosla Ventures, Schroders, Adams Street Partners and General Catalyst participated in the round, the company said on Tuesday (Sep 30). The startup is also conducting a tender offer allowing some early backers and employees to sell about US$300 million worth of shares.
Vercel develops tools to help companies make Web and AI applications in the cloud. The decade-old startup has recently seen increasing interest from investors and customers as more companies turn to AI for business development. The announcement confirms Bloomberg’s earlier reporting on the company’s lofty valuation.
“Vercel has been the best place to build Web applications for a decade, and as AI fundamentally changes what applications look like, we’ve built the infrastructure to match that reality,” chief executive officer Guillermo Rauch said in a statement.
The company said the cash influx will go towards Vercel’s AI Cloud platform and its AI development agent, called v0. The agent has more than 3.5 million unique users. The company’s customer base includes companies like Adobe, OpenAI and Stripe.
Vercel is also continuing to build out its executive team, which includes new members from Stripe, Capital One Financial Corp. and HashiCorp, the startup said.
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The tender offer, which allows some employees to cash out valuable shares, has become an increasingly popular tactic for hot AI companies as they seek to retain top performers in a competitive job market. BLOOMBERG
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