Austin startup Coder was born out of remote Skype conversations between its three founders who were in New York, Alabama and Canada. That was back in their high school days when they were working on a game server startup.
Since then, the three have formed a new company, moved to Austin and have taken their team from a humble abode they called "The Shack" and brought it to one of the most prominent skyscrapers in Austin -- the Frost Bank Tower.
On Wednesday, the startup opened its next chapter, announcing it has raised a $30 million Series B, with plans to further develop its coding platform and double the size of its team over the next year or so.
"We’re not a normal case, if you look at what’s happening with startups and VCs out there."
Coder, founded by Ammar Bandukwala, Kyle Carberry and John Andrew Entwistle has created a cloud-based platform that developers at large enterprises, including government agencies and big banks, use to write more code and accelerate workflows. It's finding even more traction now as all kinds of businesses try to adapt their development cycles with fully-remote teams and strong security to keep their intellectual property safe.
“When you send all our software engineers home… you can’t just have these engineers have the bank’s intellectual properties on their laptop,” Entwistle told Inno on a Zoom conference.
Coder helps secure development by making their platform cloud-based, which lowers the chances of IP being misused if someone has a laptop stolen. And that's key for the big banks and government agencies that they work with, but decline to name, citing nondisclosure agreements.
“Everyone we’re working with is trying to figure out a way to have their engineers have secure access to their code bases," he said. "Progress can’t just stop because everyone’s home.”
The new round of funding was led by GGV Capital. Redpoint Ventures, Uncork Capital and In-Q-Tel, a VC firm with close ties to the CIA, were also in on the investment round, which brings Coder's total funding raised to $43 million. Glenn Solomon, managing partner at GGV, is joining Coder's board as part of the deal. The company declined to share revenue figures.
Coder currently has about 25 employees, and it plans to double that by adding roles in all departments in the next year or so.
Entwistle said that Coder didn't face many challenges in raising its new round of funding, despite the dramatic slowdown in travel and the headwinds many VC firms and fellow startups are facing due to the coronavirus pandemic. It all came together quickly in early March, and the nature of Coder's product makes it somewhat immune from coronavirus disruptions.
“We’re not a normal case, if you look at what’s happening with startups and VCs out there,” he said.
He said Coder has found all of its funding outside of Austin, so far, and that it has taken years for the company to work on relationships with VC firms in California and beyond. Entwistle said that current stay-at-home orders present an opportunity for some startups, since talking to a VC firm in Austin is now almost the same as talking to one out-of-state or even out-of-country.
He said local startups should continue to be aggressive.
“Don’t be afraid to chase after investors who you think will understand what you’re building, no matter where they’re located," he said. He also suggested founders look for firms that have recently raised funding to deploy and are still actively investing.
“You’re looking for well-capitalized firms that understand your product no matter where you are," he said.
