Qodo’s $40M Funding Fuels AI-Powered Code Quality Revolution
Qodo, the AI-driven code generation platform formerly known as CodiumAI, has raised a $40 million Series A round led by Susa Ventures and Square Peg. The investment underscores the growing demand for tools that prioritize code quality and testing alongside AI-powered generation.
Beyond Code Generation: A Quality-First Approach
While many AI coding tools focus solely on code generation, Qodo distinguishes itself with a quality-first philosophy that spans the entire software development lifecycle. Since emerging from stealth 18 months ago, the platform has attracted over 1 million developers and multiple Fortune 100 companies.
Key differentiators include:
- IDE integrations for VS Code and JetBrains
- Git agent support for GitHub, GitLab, and BitBucket
- Chrome extension and CLI tools
- “Task-aware coding” that understands developer intent
“We’re the first quality-first code generation platform for complex code,” said CEO Itamar Friedman. “Our vision requires integration across the entire development process to catch bugs where they occur.”
The Full Lifecycle Advantage
Qodo’s comprehensive approach offers unique benefits:
- Pre-Coding: Developers describe issues in natural language, enabling context-aware suggestions
- Development: AI assists with code completion while maintaining quality standards
- Testing: Built-in test generation within the IDE
- Review: Tools highlight changes and potential issues for reviewers
Friedman revealed plans to enhance code reviews with automated video walkthroughs of changes, making the process more efficient while keeping humans in the loop.
Investor Confidence in Quality-First AI
“AI agents are becoming essential for software creation,” noted Yonatan Sela of Square Peg. “Enterprise adoption requires tools that work harmoniously with existing codebases—Qodo’s quality focus addresses this perfectly.”
What’s Next for Qodo?
The company plans to:
- Launch Qodo UX for UI testing
- Expand testing capabilities to cover all major types (unit, functional, integrity)
- Enhance cross-tool learning for smarter suggestions
This funding round, which included participation from Firestreak Ventures, ICON Continuity Fund, TLV Partners, and Vine Ventures, brings Qodo’s total funding to $50 million—positioning the company as a leader in AI-powered code quality solutions.
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