Bootstrapped GitHub Raising a Round from Andreessen Horowitz

By Erin Griffith , written on May 21, 2012

From The News Desk

Github is nearing a close on a round of venture funding from Andreessen Horowitz, according to sources familiar with the situation.

The popular social network for programmers and code host has famously bootstrapped itself up to this point. GitHub's enterprise products have garnered millions of dollars in revenue from large tech companies whose coders swear by it, making it profitable for at least the last year. Ask any startup CEO if they've heard of GitHub; they'll tell you their coders love it.

If coders are the new rock stars, GitHub is their book of guitar tabs.

The site is even being used as a recruitment tool. Hiring managers don't want to see a coder's resume -- they want to see their GitHub profiles.

This all plays into how the four-year-old company has garnered such a healthy valuation. I haven't confirmed the amount GitHub will raise or the company's revenues, but have heard rumblings that the valuation on the company's first round of funding will be anywhere from an impressive $500 million to $800 million.

GitHub has 1.6 million registered users with 2.8 million repositories. Users can buy subscriptions to host code on the site for $7 per month, but its enterprise product, where companies can host code behind a firewall, starts at $5,000 per year. Large tech companies drop up to $1 million per year on GitHub subscriptions, I'm told.

The company was launched as a weekend project but has blossomed into a real business with 55 employees and the largest host of code in the world.

GitHub did not immediately response to request for comment but I'll update as I learn more...

[Disclosure: Andreessen Horowitz partners Marc Andreessen and Jeff Jordan are angel investors in PandoDaily.]