Cognition, the startup behind the AI coding agent Devin, is seriously considering raising a new funding round before the end of the year after receiving investor offers valuing the San Francisco company at $70bn to $80bn. Katie Roof reported the talks for Business Insider on Wednesday, citing sources familiar with the matter.
Key takeaways
- Cognition is weighing a new funding round at a $70bn to $80bn valuation.
- The talks were reported by Business Insider on Wednesday based on sources familiar with the matter.
- The startup recently announced a Series E of more than $2bn at a $48bn valuation on 8 September.
- Run-rate revenue grew from $492m in May to almost $900m according to a previous company announcement.
What is the current cognition valuation?
Investor offers have placed the startup in a range of $70bn to $80bn. The discussions are still at an early stage, and the terms could change, according to The Next Web. These offers arrive only weeks after Cognition announced a Series E round of more than $2bn on 8 September at a $48bn valuation. Backers for that previous round included Andreessen Horowitz, Accel, Founders Fund, General Catalyst, and Avenir.
Growth and AI coding agent market rivalry
Run-rate revenue at the San Francisco company climbed from $492m in May to almost $900m, as shared in the September announcement. Scott Wu, Steven Hao, and Walden Yan founded the business in 2023, and hired former Facebook and Yahoo security chief Alex Stamos as CISO in September. Business Insider noted that these offers sit inside a broader rush to back AI coding startups. SpaceX finalized its $60bn Cursor takeover in June, and the leaders of Cognition and rival Factory clashed publicly earlier this month over an adviser's exit, as reported by Bloomberg.
What happens next?
If the San Francisco company completes a round at the high end of the current offers, the new valuation would sit about two thirds above the price tag from September. The talks remain early and terms can shift before any deal wraps up before the end of the year.
Frequently asked questions
Cognition is the startup behind the AI coding agent Devin. Scott Wu, Steven Hao, and Walden Yan founded the company in 2023.
Katie Roof reported the funding talks for Business Insider on Wednesday, citing sources familiar with the matter.
On 8 September, Cognition announced a Series E round of more than $2bn at a $48bn valuation.
Andreessen Horowitz and Accel led the Series E round, with Founders Fund, General Catalyst, and Avenir also investing.
Cognition stated that its run-rate revenue grew from $492m in May to almost $900m during its September announcement.
Based on reporting by The Next Web. Read the original article
