Qodo raises $40 million Series A for AI-driven coding and bug prevention
Qodo raises $40 million Series A for AI-driven coding and bug prevention
The Israeli startup has developed an AI-based platform for writing and testing high-quality code to prevent issues like the CrowdStrike event that brought down millions of computers worldwide three months ago.
Qodo (formerly CodiumAI), a startup developing a platform to enhance code quality by embracing AI-empowered coding, testing, and reviewing, has completed a $40 million Series A funding round, bringing total investment in the company to $50 million since its inception. The round was led by Susa Ventures and Square Peg, with participation from Firestreak Ventures, ICON Continuity Fund, and Seed investors TLV Partners and Vine Ventures.
Qodo was founded in 2022 by Itamar Friedman, CEO, and Dedy Kredo, Chief Product Officer—entrepreneurs with extensive experience in software development, machine learning, and product management. Friedman previously served as a director at Alibaba Group and was co-founder and CTO of Visualead, which was acquired by Alibaba. Kredo served as VP of Customer Data Science at Explorium and previously managed a product line at VMware. Their experience revealed the challenges of verifying code against product specifications, prompting them to develop a comprehensive solution.
Qodo currently employs 40 people across Israel, the U.S., and Europe, and is in the process of expanding its team, recruiting talent across development, product, and other key areas. Within three months of launching its paid platform, Qodo reached an annual recurring revenue (ARR) rate of over $1 million. Among its clients are leading Israeli tech companies such as HiBob, Bringg, and WalkMe, which was recently acquired by German company SAP.
The software development landscape is undergoing a radical transformation, with the rise of AI-powered coding solutions and a shift toward automation. These advances allow developers to focus on higher-level tasks. However, this trend also raises concerns about code quality and the lack of protective measures necessary for successful implementation. Most code generation tools prioritize speed over quality, often leading to inaccuracies and bugs that can cause delays in development, functionality issues, or even larger failures impacting millions of users.
Qodo’s platform addresses these challenges by providing intelligent code generation, testing, thorough reviews, and documentation. The platform allows for comprehensive testing of the generated code to minimize issues.
“As we shift towards AI-native code development, success won’t come from rushing to automate everything,” said Itamar Friedman, CEO and co-founder of Qodo. “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.”
“Recent outage events highlight the devastating potential of errors within software,” said Jenna Zerker at Susa Ventures. “This affirms that enterprises absolutely cannot risk embracing a high degree of AI autonomy in software development without having the proper validation and safeguards in place first. We invested in Qodo because they’re taking on code development from the necessary quality-first mindset. Their approach mitigates risks and improves the reliability of code, providing immediate ROI for enterprises while unlocking tremendous value in enabling agentic software development.”
