SonarSource Navigates Way To $412M Raise At $4.7B Valuation

Switzerland-based SonarSource raised a $412 million round that values the “clean code” platform at $4.7 billion.

The round was led by new investors Advent International and General Catalyst. Permira and existing investor Insight Partners also participated in the round.

SonarSource’s portfolio of products helps developers create high-standard code—free of bugs and security vulnerabilities—and embeds clean code directly into the development process. That allows teams to more quickly—and securely—develop software and products. That has become important as more and more companies develop and continuously update their own applications.

Investors have taken note. According to Crunchbase data, investment in VC-backed developer tool companies hovered around $2 billion to $3 billion from 2018-2020. However, last year that number exploded to nearly $9.3 billion.

So far this calendar year, the space has seen about $1.2 billion of investment, according to Crunchbase.

In the last four years, SonarSource grew its commercial customer base by more than 2,000 percent, the company said in a release.

“With the market recognizing the importance of code, we have a clear path to $1 billion in revenue,” co-founder and CEO Olivier Gaudin said in the release. “Having the right people and partners around the table will help us to move swiftly toward that goal and prepare for public markets.”

The round also illustrates Advent International’s and General Catalyst’s increasing investment interests. Advent made 19 investments last year—its most since 2000—according to Crunchbase data. General Catalyst made its most investments ever last year with nearly 200 different deals, according to Crunchbase.

Both are known for software investments.

SonarSource, founded in 2008, had only previously raised $45 million, according to Crunchbase.

Illustration: Li-Anne Dias.

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