Qodo Secures $40M in Series A Funding to Revolutionize AI-Driven Code Integrity

Qodo raises $40M to advance AI-driven code integrity solutions - SiliconANGLE

Israeli artificial intelligence code-checking startup Qodo - previously known as CodiumAI Ltd. - announced today that it had raised $40 million in new funding to further develop its platform for improving code integrity and reliability. Founded in 2022, Qodo's service focuses on enhancing the quality and reliability of software development through the use of AI and a suite of tools that integrate into the software development lifecycle. The company's platform is designed to assist developers by providing intelligent code generation, testing, reviews and documentation. The service seeks to address the issue in the software development landscape where the rise of AI in code generation is rapidly being embraced due to its advantages but has also seen a rise in concerns around code quality and a lack of necessary safeguards for successful enterprise-level implementation. Qodo argues that as more code is AI-generated, ensuring reliability becomes even more critical to prevent potential bugs that could impact millions of users. Qodo takes an approach to AI-empowered software development that places a strong emphasis on code quality and reliability. The company's platform seamlessly integrates agentic AI into the environments where developers work, including popular Integrated Developer Environments, version control platforms such as Git and Command Line Interfaces. Qodo assists with intelligent code generation, testing, thorough reviews and documentation to prioritize quality throughout the development lifecycle. "As we shift towards AI-native code development, success won't come from rushing to automate everything," Itamar Friedman, chief executive officer and co-founder of Qodo, explains. "Instead, we need to carefully integrate AI tools to enhance human expertise, focusing on quality and adaptability rather than just speed." "Through comprehensive testing and reviewing, embedded into each stage of the software development lifecycle, we will be able to rely on AI agents as an integral part of the team, dramatically reducing fear of bugs or hallucinations," Friedman added. Since launching its TestGPT platform in March 2023, Qodo has seen strong growth and is now being used by over one million developers. Notable companies using Qodo's services include Intel Corp., Nexxen Technologies Inc., Melio Payments Inc., Percepto Robotics Inc. and Loft Holdings Inc. Susa Ventures and Square Peg Capital Pty. Ltd. co-led the Series A funding round, with Firestreak Ventures, ICON Continuity Fund LP, TLV Partners Ltd. and Vine Ventures also participating. Including the new funding, Qodo has raised $50 million to date.

Qodo raises $40M Series A to bring quality-first code generation and testing to the enterprise

At first glance, Qodo, the startup previously known as CodiumAI, may appear to be yet another AI code generation tool. But the team, which is announcing a $40 million Series A round led by Susa Ventures and Square Peg today, is just as much focused on generating code as on generating the tests and code quality in general. The service launched out of stealth 18 months ago and so far, the company says, over 1 million developers have tried its solutions and a number of Fortune 100 companies have adopted its enterprise platform. One major differentiator for Qodo is that while the company offers the usual extensions for Visual Studio Code and JetBrains to bring its Qodo Gen tools right into the IDE, it also offers a git agent that supports GitHub, GitLab, and Atlassian's BitBucket, as well as a Chrome extension and a CLI tool. "We call ourselves the first quality-first code generation platform for complex code," Qodo CEO and co-founder Itamar Friedman told me. "In order to enable quality-first code generation, we believe we need to integrate into the entire software development lifecycle." Friedman noted that each of the company's tools aims to reduce bugs and issues in another part of the coding and deployment process. "It's death by 1,000 cuts and we want to deal with each one of them in our vision. So we need to meet the bugs and the issues, either where they were created or where they can be caught. So we're integrating into many locations." Another interesting aspect of Qodo is that it offers developers the option to write out the issue they are trying to fix and how they want to tackle it in natural language. This way, Qodo knows what you are trying to do when you start working directly with the code. Friedman called this "task-aware coding." The agent doesn't directly try to fix the issue, but now the code-completion tool is aware of what you are trying to do and can focus its suggestions on that. After writing code, developers can then access Qodo's test generation service within their IDE. Later on, once the code has been pushed to GitHub, Qodo's tools can help the reviewer quickly see what was changed and what the possible issues are. Friedman told me that the team is actually thinking about extending this tool to automatically create a video that walks the reviewer through the changes. "The human is still involved, but I need to make it easier for him or her to review [the code]," Friedman said. By covering the entire lifecycle, Friedman argued, the individual tools can also learn from each other. If your reviewers always give you very similar comments about your code then the code suggestion tool can take that into account, for example. "AI agents play an increasingly pivotal role in software creation, and we believe a quality-first approach is key for their widespread adoption at the enterprise," said Yonatan Sela at Square Peg. "Devs at the enterprise don't 'start from scratch,' their code needs to work in harmony with tens of thousands of lines of code that are already there." Looking ahead, the Qodo team plans to extend its service to also test the code from the user interface. This new service, tentatively called Qodo UX, will behave like a human who tries to use a company's website and test the user interface for bugs. "Someone could say, 'Okay, just do end-to-end testing. But if you do end-to-end testing and you find a bug, you don't know where it is, and you can't really prove that you tested everything. Each testing type has its unique pros and cons. We want to cover all. We started with unit and functional [testing]. Then we grew to integrity. Next quarter is UX testing." In addition to Susa Ventures and Square Peg, Firestreak Ventures and ICON Continuity Fund also participated in this round, as did seed investors TLV Partners and Vine Ventures. This $40 million Series A round now brings the company's total funding to $50 million.

AI Code Checker Qodo Raises $40 Million to Serve Bigger Clients

Qodo, a Tel Aviv-based startup selling artificial intelligence software that tests and finds bugs in code, has raised $40 million to expand the business and service larger customers. The funding round, led by Susa Ventures and Square Peg, brings the total amount raised by the startup to $50 million, the company said in a statement. It declined to disclose its valuation.