Sourcegraph raises $125M Series D on $2.6B valuation for universal code search tool

sourcegraph, a late stage startup that wants to bring the power of discovery to code, announced a $125 million Series D investment in December 2020 at a $2.625 billion valuation, an increase of 3x from its previous valuation, according to the company.

The round was led by Andreessen Horowitz, with participation from Insight Partners, Geodesic Capital and other existing investors. According to data from Crunchbase, the company has now raised about $225 million.

The company’s CEO and co-founder Quinn Slack says that every company we know by now is making software, and as they do, they’re generating tons of code. “They are all drowning in code, and we help solve that. Our product is Universal Code Search, which helps developers find, understand, and automate code,” Slack explained.

He says companies use SourceGraph to find problems and vulnerabilities they might not otherwise see. Developers and site reliability engineers can see there’s a problem, but access to the specific part of the code where it’s occurring requires a special tool, he says. Some large companies may build their own tools for this purpose, but most companies do not have the resources and this puts code discovery within reach of many more developers.

“The Universal Code Search that we created – and we spent a lot of time building it – is the first kind of code search that really understands code as code and all the connections, graphs of code. And that means if you have a developer, you can get that answer how do i make this work or how do i fix it or if i replace it which is going to break, in less time and so you need a purpose-built code search tool,” he said.

He says the company was founded in 2013, but it took almost five years to create a product of this sophistication. The startup was able to get funding initially based on the potential of such a device. Now investors are seeing the traction they initially envisioned.

Today they have 800,000 developers using the product in the past 12 months and Slack says they have indexed over 54 billion lines of code. Paying customers include Plaid, Uber, GE and Atlassian. The company has around 160 employees and with this new capital it is expected to increase to 250 by the end of the year.

The company made the fortunate decision to move away completely in January of 2020, a few months before the closure of offices in the US, and plans to remain remote even after the offices fully reopen.

Slack doesn’t shy away from the IPO question, saying it’s definitely something they think about. “We want to eventually be a public company, so that we can show that we are going to be around forever. This funding definitely shows that we are growing, and we are going to stick around and we are going to be vendor independent. So you know it’s definitely an important part of our strategy.”

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