Koding raises $7.25 million Series B

By Erin Griffith , written on December 20, 2012

From The News Desk

Koding, a San Francisco-based cloud development environment, has raised a Series B round of funding worth $7.25 million, according to an SEC filing. Josh Hannah of Matrix Partners is listed as a director, which means the firm led the round. Koding previously raised $2 million from RTP Ventures and Greycroft Partners. Angel investors included Rich Chen, formerly of Google, Roger Krakoff, CEO of CloudCapital, Demian Sellfors, CEO of Media Temple, Bob Pasker, and Nihal Mehta CEO of Localresponse.

The point of a browser-based code editor is to make it easier for engineers to get set up and begin writing code. Once they're set up, Koding makes it easy to collaborate, write code, run apps and even host the code all within its system.

It fits into the "teach the world to code" philosophy that's been adopted by so many startups over the last few years. These companies, from educational ones like Udemy and CodeAcademy to more sophisticated tools and languages, are essentially selling pickaxes amid a gold rush. As more of the population learns programming to meet the demand of the job market (also, coders are rock stars, or something), more companies are springing up to service them. Code repository Github was valued at $750 million when it raised its first outside funding from Andreessen Horowitz. Koding CEO Devrim Yasar has said he wants Koding to become the next Github, wherein programmers share code at Github and work on it at Koding.) Similar coder tools like open source development platform Meteor, also backed by Matrix Partners, and Light Table, a reactive work surface for Javascript and Clojure developers, have surged in popularity.

Koding has proven its own popularity: when the company raised its Series A in March it had 40,000 coders signed up; it now has 200,000 users on its wait list for test out private beta, Yasar says. The company will monetize with a model similar to Github, he says -- free for individuals use ("forever"), but corporate accounts and places like universities will pay a subscription fee for private workspaces.