The big rounds just keep coming this week.
Vercel, a platform that allows companies to develop web applications in the cloud, locked up a $250 million Series E at a valuation of $3.25 billion. There have been eight rounds this week of at least $100 million to U.S.-based startups.
The round was led by Accel, with participation from other existing investors including CRV, GV, Notable Capital (previously GGV Capital), Bedrock, Geodesic Capital, Tiger Global, 8VC and SV Angel.1.
The new round is an upround from Vercel’s 2021 raise, when it secured $150 million in a Series D funding at a $2.5 billion valuation led by GGV Capital.
The San Francisco-based firm allows developers to use an open-source framework to create web applications, and tries to simplify the process to migrate websites to cloud infrastructure to help with accessibility.
“Vercel’s Frontend Cloud has been adopted by a growing number of enterprises globally to build more performant personalized web experiences,” said founder and CEO Guillermo Rauch in a statement. “As we enter this next stage of growth and innovation, the Vercel team remains focused on helping more companies securely deliver AI-driven, dynamic digital experiences.”
Getting big
Vercel has a number of big-name customers such as Under Armour, Unity and Nintendo, and said it recently surpassed $100 million in annualized revenue and more than 1 million monthly active developers.
The company also has an AI play. It will use the new cash to further build its v0 product which allows users to use text to describe what they want and an AI-enhanced interface will turn it into code for web application development.
Illustration: Dom Guzman
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